SUP STAT (Rev. Proc. 2004-15)

SUPPORTING STATEMENT

Revenue Procedure 2004-15

OMB # 1545-1873

1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

Section 601.201(a)(1) of the Statement of Procedural Rules (26 C.F.R. § 601.201(a)(1)) provides that it is the practice of the Internal Revenue Service (“Service”) to answer inquiries of individuals and organizations, whenever appropriate in the interest of sound administration tax administration as to the tax effects of their transactions.

In Rev. Proc. 2003-6 2003-1 I.R.B. 191, which was republished as Rev. Proc. 2004-6 in issue 2004-1 of the Internal Revenue Bulletin on January 5, 2004, the Service set forth its basic determination letter revenue procedure for the Employee Plans function. Section 15 of that revenue procedure refers to the process for obtaining certain waivers of the minimum funding standards described in section 412(d) of the Internal Revenue Code.

In this revenue procedure, the Employee Plans function is expanding on the basic determination letter revenue procedure by establishing a method for obtaining waivers from the minimum funding standards that is applicable to both defined contribution plans and defined benefit plans. These methods were last set forth in Rev. Proc. 94-41, 1994-1 C.B. 711. Rev. Proc. 2003-6 (along with three other general revenue procedures) has previously obtained a control number from the Office of Management and Budget (1545-1520) which has been renewed several times, however, the specialized revenue procedure which is being updated and republished was last published before the enactment of the Paperwork Reduction Act of 1995.

2. USE OF DATA

The data will be used by the Service to evaluate an employer’s eligibility to obtain a waiver from the minimum funding standards described in section 412 of the Code and will assist employers in the notification process. This data may be shared with the Employee Benefits Security Administration of the U.S. Department of Labor in the enforcement of the provisions of the Employee Retirement Security Act of 1974.

2. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

IRS Publications, regulations, notices, and are to be electronically enabled on an as practicable basis in accordance with the IRS Reform and Restructuring Act of 1998.

2. EFFORTS TO IDENTIFY DUPLICATION

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

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

Waiver requests below a certain dollar amount are eligible for a lower user fee. The revenue procedure contains a model notice to assist small businesses in their requirements to notify employees, participants, beneficiaries, and alternate payees of the request for a waiver and to assist small businesses in meeting the notification requirements of the U.S. Department of labor as well as the Service. In addition, the revenue procedure contains a checklist to assist applicants in ascertaining whether they have completed the information sought by the Service. It is anticipated that small businesses and other small entities (including individuals) will be the primary beneficiaries of the model notice and the reduced user fees.

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

If the IRS did not collect this information, the IRS will not be able to evaluate an employer’s eligibility to obtain a waiver from the minimum funding standards described in section 412 of the Code and will not be able to assist employers in the notification process.

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

Various sections of the revenue procedure for determination letters require information to be submitted before 30 days. These provisions are located throughout portions of 26 CFR 601.201.

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

Revenue Procedure 2004-15 was published in the Internal Revenue Bulletin on February 7, 2004 (2004-7 IRB 490).

In response to the Federal Register notice dated

October 4, 2016 (81 FR 68501), we received no comments during the comment period regarding Revenue Procedure

2004-15.

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

No payment or gift has been provided to any respondents.

8. ASSURANCE OF CONFIDENTIALITY OF RESPONSES

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

In general, certain matters relating to taxability and deductibility are disclosable under 26 U.S.C. §6110.

8. JUSTIFICATION OF SENSITIVE QUESTIONS

No personally identifiable information (PII) is collected.

8. ESTIMATED BURDEN OF INFORMATION COLLECTION

Section 2 of the revenue procedure requires that an applicant state that a notice of the request for a waiver from the minimum funding standards, e.g., the model notice published with the revenue procedure, has been given to each employee organization, participant, beneficiary, and alternate payee. Section 2 also requires the submission of general facts regarding the employer, the financial condition of the employer, the nature and extent of the business hardship, various data about the plan subject to section 412 of the Code, as well as additional information if there is more than one plan (and other information, e.g., matters pending with other government agencies with regulatory jurisdiction over pension plans.

The estimated annual burden per respondent varies from 70 to 100 hours with an estimated average burden of 85 hours on 55 respondents for a total 4,675 hours.

Appendix B is a checklist that must be completed by applicants to assist them in ascertaining that the information being submitted is complete.

The estimated annual burden per respondent varies from 30 minutes to 1½ hours with an estimated average burden of 1 hour on 55 respondents for a total of 55 hours.

The total estimated average annual burden varies from 70½ hours to 101½ hours with a total estimated burden of 86 hours on 55 respondents for a total of 4,730 hours annually.

Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.

8. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

There are no start-up costs associated with this collection.

8. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT

There are no known annualized costs to the federal government.

8. 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.

8. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION

There are no plans for tabulation, statistical analysis and publication.

8. 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 revenue procedure sunsets 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.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT

There are no exceptions to the certification statement for this collection.

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.