SUPPORTING STATEMENT
Revenue Procedure 2004-53
OMB# 1545-1510
CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
This revenue procedure supersedes Rev. Proc. 96–60, 1996–2 C.B. 399. This revenue procedure explains both the standard procedure and an alternate procedure for preparing and filing Form W–2, Wage and Tax Statement; Form 941, Employer’s Quarterly Federal Tax Return; Form W–4, Employee’s Withholding Allowance Certificate; and Form W–5,
Earned Income Credit Advance Payment Certificate, in certain acquisitions. This revenue procedure applies when an employer (successor) acquires substantially all the property (1) used in a trade or business of another employer (predecessor), or (2) used in a separate unit of a trade or business of a predecessor, and, in connection with or immediately after the acquisition (but during the same calendar year), the successor employs individuals who immediately prior to the acquisition were employed in the trade or business of the predecessor. (The term “trade or business,” for purposes of this revenue procedure, may include the activity of a nonprofit organization or of a federal or state agency.)
.02 This revenue procedure provides guidance on the new schedule (Schedule D (Form 941), Report of Discrepancies
Caused by Acquisitions, Statutory Mergers, or Consolidations) that the Internal Revenue Service is currently developing. Employers will be able to use Schedule D (Form 941) to explain the discrepancies between Forms W–2 (Copy A) and Forms 941 in the totals of social security wages, Medicare wages and tips, social security tips, federal income tax withheld, and advance earned income credit (EIC) payments, caused by acquisitions, statutory mergers, or consolidations. If Form 941 is filed electronically, an employer will be able to file Schedule D (Form 941) separately on paper, until the electronic specifications for Schedule D (Form 941) become available.
.03 This revenue procedure also amplifies Rev. Rul. 62–60, 1962–1 C.B. 186. Rev. Rul. 62–60 describes the information
a resultant corporation (now known as a surviving corporation) should provide on an absorbed corporation (now known as an acquired corporation) after a statutory merger or consolidation. If the surviving corporation completes and files Schedule D (Form 941) to explain discrepancies between the totals on Forms W–2 (Copy A) and the totals on Forms 941, Schedule D (Form 941) will also provide notice of a statutory merger or consolidation under
Rev. Rul. 62–60.
USE OF DATA
The information will be used to identify predecessor and successor employers who choose to use the Alternative Procedure and will facilitate the reconciling of wage information.
USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
IRS Publications, Regulations, Notices and Letters are to be electronically enabled on an as practicable basis in accordance with the IRS Reform and Restructuring Act of 1998.
EFFORTS TO IDENTIFY DUPLICATION
We have attempted to eliminate duplication within the agency wherever possible.
METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
There are no small entities affected by this collection.
CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES
Consequences of less frequent collection on federal programs or policy activities could result in a decreased amount of taxes collected by the Service, inaccurate and untimely filing of tax returns, and an increase in tax violations.
SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
There are no special circumstances requiring data collection to be inconsistent with guidelines in 5 CFR 1320.5(d)(2).
CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS
Revenue Procedure 96‑60 was published in the Internal Revenue Bulletin on December 30, 1996 (Revenue Procedure 96‑60, 1996‑53 I.R.B. 24). Revenue Procedure 2004-53 supersedes Rev. Proc. 96–60, 1996–2 C.B. 399.
We received no comments during the comment period in response to the Federal Register notice dated July 27, 2015 (80 FR 44432).
EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
No payment or gift has been provided to any respondents.
ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returns and tax return information are confidential as required by 26 USC 6103.
JUSTIFICATION OF SENSITIVE QUESTIONS
A privacy impact assessment (PIA) has been conducted for information collected under this request as part of the “Business Master file (BMF)” and a Privacy Act System of Records notice (SORN) has been issued for these systems under IRS 22.062 – Electronic Filing Records; IRS 24.030 – Customer Account Data Engine (CADE) Individual Master File; IRS 24.046 - CADE Business Master File (BMF);IRS 34.037 - IRS Audit Trail and Security Records System. The Internal Revenue Service PIA’s can be found at http://www.irs.gov/uac/Privacy-Impact-Assessments-PIA.
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.
ESTIMATED BURDEN OF INFORMATION COLLECTION
(1) Revenue Procedure 96‑60 sets forth procedures for predecessor and successor employers to follow when filing their Forms 941, W‑2, W‑3, W‑4 and W‑5 in certain acquisitions. The collection of information for each of these Forms has been approved under the OMB number associated with these forms.
Section 5.03 requires predecessor employers to attach a statement to their Form 941. We estimate that 276,753 predecessor employers will choose to use the Alternate Procedure annually. We estimate that it will take an average of 12 minutes (.2 hours) to prepare and attach the required statement. The total estimated reporting burden is 55,350 hours (276,750 x .20).
(2) Section 5.04 requires successor employers to attach a statement to their Form 941. We estimate that 276,750 predecessor employers will choose to use the Alternate Procedure annually. We estimate that it will take an average of 12 minutes (.2 hours) to prepare and attach the required statement. The total estimated reporting burden is 55,350 hours (276,750 x .20).
The total reporting burden for the above requirements is 110,700 hours.
Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.
ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
There is no estimated cost burden to respondents.
ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
There is no estimated annualized cost to the federal government.
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.
PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
There are no plans for tabulation, statistical analysis and publication.
REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
We believe that displaying the OMB expiration date is inappropriate because it could cause confusion by leading taxpayers to believe that the regulations sunset as of the expiration date. Taxpayers are not likely to be aware that the Service intends to request renewal of the OMB approval and obtain a new expiration date before the old one expires.
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.
| File Type | application/msword |
| Author | J11FB |
| Last Modified By | Department of Treasury |
| File Modified | 2015-09-21 |
| File Created | 2015-09-21 |