New or Changed Provisions

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FY2012 ICB Summary of Burden

 
FY 2012
 
 
 
 
 
Previously Approved FY11
Program Change due to Adjustment
Program Change due to New Legislation
Program Change due to Agency 
FY12
 
 
 
 
 
 
Number of Taxpayers
      146,700,000 
           6,500,000 
                     -   
                    -   
      153,200,000 
Burden in Hours
    2,701,000,000 
          16,000,000 
       (37,000,000)
                    -   
   2,679,000,000 
Burden in Dollars
  35,193,000,000 
       (673,000,000)
      (418,000,000)
       29,000,000 
 34,131,000,000 
 
 
 
 
 
 

Burden increase because of change to new statute: No
Burden increase because of change due to agency discretion: Hours No and Dollars Yes
Burden increase because of adjustment in estimate: Hours Yes and Dollars No

Burden Reduction Due to: 
Short Statement: The change in estimated aggregate compliance burden can be explained by three major sources - technical adjustments, statutory changes, and discretionary agency (IRS) actions. 

Technical Adjustments - The largest adjustments are from incorporation of new taxpayer data, updated forecasting targets, and refinements to the estimation methodology. The incorporation of new taxpayer data to better reflect the impact of the current economic environment provides the largest adjustment.
 
Statutory Changes - The primary drivers for the statutory changes are credits provided in the American Recovery and Reinvestment Act (ARRA) of 2009 and implementation of new reporting requirements in the Emergency Economic Stabilization Act of 2008. The provisions listed below are more than offset by the impact of the expiring ARRA provision.

Primary examples include:

New or Changed Provisions

Capital Gains and Losses: In most cases, transactions for capital gains and losses must now be entered on the new Form 8949 and the subtotal of the sales price, basis, and adjustment amounts from Form 8949 are carried to the Schedule D. Up to six separate Forms 8949 could be required depending on the holding period of the assets, whether or not basis related to the transaction was reported by the broker, and whether a reporting document was received for the transaction. These changes were made to coincide with the new Form 1099-B basis reporting.

	The number of filers affected: 21,000,000.


Alternative Minimum Tax: The AMT exemption amount was increased to $48,450 ($74,450 if married filing jointly or a qualified widow; $37,225 if married filing separately).

Had this legislation not been enacted, at least 20 million additional taxpayers would have been required to file Form 6251, Alternative Minimum Tax.

Expired Provisions

The Making Work Pay Credit expired.

	The number of filers who claimed this provision in 2010: 100,000,000.


IRS Discretionary Changes - IRS discretionary changes include expanded e-file availability, registration fees for paid preparers, and fees for a new competency exam for certain preparers. 

Discretionary changes also include a change for the repayment of the first-time homebuyer credit. Repayment may now be made without attaching Form 5405.

	The number of filers affected: 550,000.

These initiatives have a net effect of a slight decrease in time that is not shown due to rounding as well as a net effect of increasing money burden. 

Total- Taken together, the changes discussed above have decreased the total reported burden by 22,000,000 hours.