2013-Supp-stmnt8874-A.Sup

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                       	SUPPORTING STATEMENT
                        OMB#1545-2065                
                          Form 8874-A    

1.   CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

     Form 8874-A, Notice of Qualified Equity Investment for New 
     Markets Credit, was developed because qualified community        development entities (CDEs) must provide taxpayers holding a      qualified equity investment with a completed Form 8874-A         when a qualified equity investment is received. Regulations      section 1.45D-1(g)(2)(i)(A).

2.   USE OF DATA              

Form 8874-A will be filed with the IRS. 
          
    3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

We plan to offer electronic filing for Form 8874-A.   

4.   EFFORTS TO IDENTIFY DUPLICATION

We have attempted to eliminate duplication within the agency      wherever possible.      

5.   METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER          SMALL ENTITIES

The form was designed for requirements of Regulations            section 1.45D-1(g)(2)(i)(A).

6.   CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES

     Not applicable.

7.   SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE
     INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)

     Not applicable.

8.   CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON
     AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY
     OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS

Periodic meetings are held between IRS personnel and             representatives of various professional groups to discuss        tax law and tax forms.  During these meetings, there is an       opportunity for those attending to make comments regarding       the collection requirements under this notice.

In response to the Federal Register Notice dated July 25, 2013 (78 FR 45014), we received no comments during the 
comment period regarding Form 8874-A.

9.   EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO
     RESPONDENTS

     Not applicable.

10.  ASSURANCE OF CONFIDENTIALITY OF RESPONSES

    	Generally, tax returns and tax return information are            confidential as required by 26 USC 6103. 

11.  JUSTIFICATION OF SENSITIVE QUESTIONS

    	
            A privacy impact assessment (PIA) has been conducted for information collected under this request as part of the “Customer Account Data Engine” system and Privacy Act System of Records notice (SORN) has been issued for these systems under IRS 24.030–Customer Account Data Engine Individual Master File; IRS 24.046–Customer Account Data Engine Business Master File; IRS 26.009–Lien Files, (open and closed); IRS 26.013–Trust Fund Recovery Penalty Cases; IRS 26.019–Taxpayer Delinquent Account Files, and IRS 34.037–IRS Audit Trail and Security Records System.  The Department of Treasury PIAs can be found at http://www.treasury.gov/privacy/PIAs/Pages/default.aspx

            Title 26 USC 6109 requires inclusion of identifying numbers in returns, statements, or                  other documents for securing proper identification of persons required to make such                     returns, statements, or documents and is the authority for social security numbers (SSNs)             in IRS systems.



12.  ESTIMATED BURDEN OF INFORMATION COLLECTION

		     	Number of		Time per		Total
			     Responses		Response		Hours
    				
      Form 8874-A     500            5.43         2,715      	
					
	Estimates of the annualized cost to respondents for the hour      burdens shown are not available at this time.

13.  ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

As suggested by OMB, our Federal Register Notice dated July 25, 2013, requested public comments on estimates of cost of
     burden that are not captured in the estimates of burden
     hours, i.e., estimates of capital or start-up costs and 
     costs of operation, maintenance, and purchase of services to 
     provide information.  However, we did not receive any 
     response from taxpayers on this subject.  As a result, 
     estimates of the cost burdens are not available at this 
     time.

14.  ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT

     Not applicable.

15.  REASONS FOR CHANGE IN BURDEN

	There is no change in the paperwork burden previously            approved by OMB.  We are making this submission to renew         the OMB approval. 

        

16.  PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
     
     Not applicable. 

17.  REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS  
     INAPPROPRIATE

     See attachment.	

18.  EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB FORM 83-I

     Not applicable.


Note:  The following paragraph applies to all of the collections of information in this submission:

     An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number.  Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law.  Generally, tax returns and tax return information are confidential, as required 
by 26 U.S.C. 6103.



																											OMB EXPIRATION DATE

We believe the public interest will be better served by not printing an expiration date on the form(s) in this package.

Printing the expiration date on the form will result in increased costs because of the need to replace inventories that become obsolete by passage of the expiration date each time OMB approval is renewed.  Without printing the expiration date, supplies of the form could continue to be used.

The time period during which the current edition of the form(s) in this package will continue to be usable cannot be predicted.  It could easily span several cycles of review and OMB clearance renewal.  In addition, usage fluctuates unpredictably.  This makes it necessary to maintain a substantial inventory of forms in the supply line at all times.  This includes supplied owned by both the Government and the public.  Reprinting of the form cannot be reliably scheduled to coincide with an OMB approval expiration date.  This form may be privately printed by users at their own expense.  Some businesses print complex and expensive marginally punched continuous versions, their expense, for use in their computers.  The form may be printed by commercial printers and stocked for sale.  In such cases, printing the expiration date on the form could result in extra costs to the users.

Not printing the expiration date on the form(s) will also avoid confusion among taxpayers who may have identical forms with different expiration dates in their possession.

For the above reasons we request authorization to omit printing the expiration date on the form(s) in this package.