SUPPORTING STATEMENT
Internal Revenue Service
Representation of taxpayers before the Internal Revenue Service
Form 2848 and 2848 (SP)
OMB 1545-0150
CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
Title 26 CFR 601, Subpart E, Conference and Practice Requirements, sets forth the rules for acting on behalf of a taxpayer, presenting written or oral statements of fact on behalf of the taxpayer, and receiving or inspecting confidential tax information concerning the taxpayer being represented.
The rules prescribed in this subpart concern, among other things, the representation of taxpayers before the Internal Revenue Service under the authority of a power of attorney. These rules apply to all offices of the Internal Revenue Service in all matters under the jurisdiction of the Internal Revenue Service and apply to practice before the Internal Revenue Service.
These rules detail the means by which a recognized representative is authorized to act on behalf of a taxpayer. Such authority must be evidenced by a power of attorney and declaration of representative filed with the appropriate office of the Internal Revenue Service. In general, a power of attorney must contain certain information concerning the taxpayer, the recognized representative, and the specific tax matter(s) for which the recognized representative is authorized to act. Sections 601.501 through 601.509 outline the conference and practice requirements.
Section 601.504 provides the details for the requirements for filing a proper power of attorney. Form 2848 and Form 2848(SP) were created by the IRS to help clarify the requirements outlined in 601.504. Taxpayers may use these or like-forms to provide IRS a power of attorney, as long as all relevant information (as outlined in 601.504) is included.
2. USE OF DATA
The information collected by the IRS will be used to set forth the rules for acting on behalf of a taxpayer, presenting written or oral statements of fact on behalf of the taxpayer, and receiving or inspecting confidential tax information concerning the taxpayer being represented.
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3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
Taxpayers have various technologies available in communicating with the IRS depending on the particular circumstances. A power of attorney must be maintained by IRS to enable representatives quick and proper service. Power of Attorney forms may be submitted to IRS via fax machine or postal carrier. These addresses are provided to taxpayers in the instructions to Form 2848 and Form 2848(SP).
EFFORTS TO IDENTIFY DUPLICATION
The information obtained through this collection is unique and is not already available for use or adaptation from another source.
5. 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
Failure to collect the information will prevent taxpayers from properly complying and/or reporting with the requirements outlined .
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).
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 forms. During these meetings, there is an opportunity to make comments regarding Forms 2848 and 2848(SP).
In response to the Federal Register Notice dated March 1, 2017, (82 FR 12280), we received no comments regarding these forms.
9. 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.
11. JUSTIFICATION OF SENSITIVE QUESTIONS
In accordance with the Privacy Act of 1974, Treasury has published its complete Privacy Act systems of records notices, which include all maintained records systems as of January 2, 2014; six systems have been amended, altered, or added since April 20, 2010, when the complete notices were last published. See 79 F.R. 209-261 and 79 F.R. 183-206, which was published on January 2, 2014.
A privacy impact assessment (PIA) has been conducted for information collected under this request as part of the “Individual Master File (IMF)” system and a Privacy Act System of Records notice (SORN) has been issued for this system under IRS 24.030--Customer Account Data Engine Individual Master File, formerly Individual Master File, and IRS 34.037--IRS Audit Trail and Security Records System. The Internal Revenue Service 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
The burden estimate is as follows:
Authority |
Form |
# Respondents |
# Responses Per Respondent |
# Annual Responses |
Hours Per Response |
Total Burden |
CFR 601.504 |
2848 |
458,333 |
1 |
458,333 |
1.99 |
912,083 |
CFR 601.504 |
2848(SP) |
80,000 |
1 |
80,000 |
2.26 |
180,800 |
Totals |
|
538,333 |
|
538,333 |
|
1,092,883 |
Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.
The following regulations impose no additional burden. Please continue to assign OMB number 1545-0150 to these regulations.
601.504
We have reviewed the above regulations and have determined that the reporting requirements contained in them are entirely reflected on the form. The justification appearing in item 1 of the supporting statement applies both to the regulations and to the form.
13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
As suggested by OMB, our Federal Register notice dated March 1, 2017, requested public comments on estimates of cost 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, IRS estimates the cost burdens to be nominal.
14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
After consultation with various functions within the Service, we have determined that the cost of developing, printing, processing, distribution, and overhead for Form 2848 is $816,924.
REASONS FOR CHANGE IN BURDEN
There are no changes from the previous approval. This submission is being made to renew the OMB approval.
16. 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 form 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.
EXCEPTIONS TO THE CERTIFICATION STATEMENT
There are no exceptions to the certification statement.
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 |
| File Modified | 2017-06-08 |
| File Created | 2017-06-08 |