SUP STAT 1545-2085 (Form 990-N)

SUPPORTING STATEMENT

Form 990-N

OMB No. 1545-2085

1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATON

Section 1223 of the Pension Protection Act of 2006 (PPA ’06), enacted on

August 17, 2006, amended Internal Revenue Code (Code) section 6033 by adding Code section 6033(i), which requires certain tax-exempt organizations to file an annual electronic notice (Form 990-N) for tax years beginning after December 31, 2006. These organizations are not required to file Form 990 (or Form 990-EZ) because their gross receipts are normally $25,000 or less.

Code section 6033(i) requires these organizations to provide the following information:

• legal name,

• other names used,

• address,

• website address (if applicable)

• employer identification number,

• name and address of a principal officer,

• annual tax period,

• verification that annual gross receipts are still normally $25,000 or less, and

• if applicable, notification of termination.

In addition, section 1223 of PPA 2006 added new Code section 6033(j), which provides for revocation of an organization’s tax-exempt status if it fails to file a an annual electronic notice or a return (Form 990, 990-EZ or 990-PF) for three consecutive years.

2. USE OF DATA

The IRS will use the data to:

• Make corrections to the Master File

• Remove organizations that are no longer in existence, and

• Verify that the organization is not required to file Form 990 because its gross receipts are normally $25,000 or less.

In addition, we will make this information available to the public as required by Code section 6104(b).

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

Form 990-N will only be available as an electronic form.

4. EFFORTS TO IDENTIFY DUPLICATION

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

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

There are no small entities affected by this collection.

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

If the Internal Revenue Service (IRS) did not collect this information, the IRS will not be able to use the data to:

• Make corrections to the Master File

• Remove organizations that are no longer in existence, and

• Verify that the organization is not required to file Form 990 because its gross receipts are normally $25,000 or less.

7. 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).

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 the American Bar Association, the National Society of Public Accountants, the American Institute of Certified Public Accountants, and other professional groups to discuss tax law and tax forms. During these meetings, there is an opportunity for those attending to make comments regarding Form 990-N.

In response to the Federal Register notice dated November 10, 2016 (81 FR 79094), we received no comments during the comment period regarding Form 990-N.

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

No payment or gift has been provided to any respondents.

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 “e-Postcard Public Disclosure Application” system and a Privacy Act System of Records notice (SORN) has been issued for this system under IRS 34.037 – Audit Trail and Security Records System. The Department of Treasury PIAs can be found at http://www.treasury.gov/privacy/PIAs/Pages/default.aspx

Data is retrievable by EIN or organization name and/or tax period. The e-Postcard Disclosure application will contain only exempt organization annual filing notifications that are dis-closable under IRC 6104.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION

The IRS estimates that approximately 300,000 organizations will file Form 990-N. We believe that the other organizations are no longer in existence. The time to complete Form 990-N takes into consideration all nine items.

300,000 filers X .15 minutes = 45,000 minutes ⁄ 60 minutes = 75,000 hours annually

13. ETIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

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

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT

There are no known annualized costs to the federal government.

15. REASONS FOR CHANGE IN BURDEN

There is no change to 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

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

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE

We believe that displaying the OMB expiration date is inappropriate because it would cause confusion by leading taxpayers to believe that the form sunsets as of the expiration date. Taxpayers may not be aware that the IRS 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.

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