SOI-532 CEEN Focus Groups

98850601

CEEN Cognitive Interview Guide

1/13/2020

INTERVIEW INTRODUCTION

Thank you very much for agreeing to participate in this interview. I want to start out by introducing myself: my name is _______________ and I work for a research company called ICF, which is located near Washington, D.C. I am not an employee of the IRS.

My company has been hired by the IRS to conduct telephone interviews with taxpayers such as yourself. We are interested in finding out how people understand and interpret questions in an IRS customer survey. We want to know if the way the questions are worded and the answer choices provided in the survey make sense to you.

I am going to ask you some questions based on the survey questions and invite you to give your interpretation, thoughts, and opinions. There are no right or wrong answers. Also, we are not interested in your actual survey responses; rather, we are interested in your reactions to and interpretations of the questions.

IF APPLICABLE: We also have additional team members observing via a conference line. They have all signed confidentiality agreements in order to observe this interview.

Before we begin, did you review the informed consent that was sent in your invitation to this interview?

If YES: Obtain verbal consent to record interview and ask if they have any questions.

If NO: I’d like to go over the informed consent. [Obtain verbal consent to record interview and ask if they have any questions].

INTERVIEWER: VERBAL CONSENT TO PARTICIPATE MUST BE RECORDED.

I also am required to let you know that for the IRS to speak with the public, we are required to have approval from the Office of Management and Budget. Their approval number for this project is 1545-1349. If you have any comments regarding this study, please write to: IRS, Special Services Committee, SE:W:CAR:MP:T:M:S – Room 6129, 1111 Constitution Avenue, NW, Washington, DC 20224.

Your participation in this interview is completely voluntary, and we will not be using any of your answers to the survey questions. If at any point during the interview you wish to stop, you may do so. We greatly appreciate any feedback you have to offer us. Please speak loudly and clearly so that our microphones can pick up your voice.

Do you have any questions?

• Yes

• No

INTERVIEWER: IF RESPONDENT ANSWERS NO, PROCEED TO START THE INTERVIEW.

This is a national IRS survey that will be administered online and over the phone. During this discussion I am going to guide you through the survey online by looking at my screen. As we go through, I’d like you to read each survey question and answer choice out loud before letting me know which answer choices to select. As you answer the questions, please also think out loud. For example, if you are surprised by an answer choice, not sure what the choice means, or unsure of what we are asking, please let me know. After some of the survey questions, I will ask you a few questions about how you arrived at your. I might ask you if anything was unclear or confusing or what certain words/phrases mean to you. Even if I don’t specifically ask you about a question, though, please let me know if you have thoughts or questions about a question or the answer choices related to a question.

SURVEY CONTENT, INTERVIEWER QUESTIONS APPEAR IN RED.

Section 1: Self-Employment and Small Business Eligibility Screener

(28 questions)

*** LEP Screening Questions ***

[SHOW IF S_RACETH = 4]

[SP]

S1Q1. 

What language do you <i>usually</i> speak at home?

1 Only Spanish

2 More Spanish than English

3 Both Spanish and English equally

4 More English than Spanish

5 Only English

6 Neither Spanish nor English

[SHOW IF S_RACETH = 4 & S1Q1 = 1 OR 2]

[SP]

S1Q1a.         

Would you say you can carry on a <u>conversation</u> in English, both understanding and speaking, very well, well, not well, or not at all?

1. Very well

2. Well

3. Not well

4. Not at all

[SHOW IF S_RACETH = 4]

[SP]

S1Q1b.       

Would you say you can <u>read</u> a newspaper or book in English very well, well, not well, or not at all?

1. Very well

2. Well

3. Not well

4. Not at all

[PROGRAMMING: DEFINE HISP_LEP TO IDENTIFY HISPANIC RESPONDENTS WITH LIMTED ENGLISH PROFICIENCY]

IF S1Q1 = 1 or 2 AND (S1Q1a = 3,4 or S1Q1b = 3,4) HISP_LEP = 1 (HISPANIC, LEP RESPONDENT)

ELSE HISP_LEP = 0 (HISPANIC, NON-LEP RESPONDENT).]

*** CEEN Population Screening Questions ***

[MANDATORY QUESTION]

S1Q2.

The next few questions ask about your employment situation.

During 2019, were you self-employed or an independent contractor? This could include full-time work, freelancing, or a part-time side job or “side gig”, such as driving for a ride-sharing company, renting out property (Airbnb), or dog-walking. You may or may not have received a 1099 tax form from your employer or clients.

1. Yes

2. No

COGNITIVE GOAL: Understand whether R knows whether they were self-employed or an independent contractor and how they know that. Does someone who is not a gig worker or “regular” self-employed person stop seeing themselves in this question? Are we putting too much emphasis on gig here?

COGNITIVE PROBES:

1. Are there other types of work we should include as examples to help someone know if they are self-employed or an independent contractor?

2. In your own words, what does it mean to be an “independent contractor”? How is that different from being “self-employed”?

RESPONSES:

S1Q3.

During 2019, did you own or operate a Limited Liability Company (LLC) with assets of less than $10 million?

1. Yes

2. No

S1Q4.

During 2019, did you own or operate an S corporation with assets of less than $10 million?

1. Yes

2. No

S1Q5.

During 2019, were you a member of a business partnership with assets of less than $10 million?

1. Yes

2. No

COGNITIVE GOAL: Uncover any problems answering screening questions.

COGNITIVE PROBES:

1. What were you thinking about as you answered these questions? How easy or hard was it to answer these questions about your business or business partnerships?

2. PROBE IF CONFUSION NOTICED: You hesitated on [FILL QUESTION]. What were you thinking about? How did you decide on your answer?

3. INTERVIEWER: BE SURE TO FOLLOWUP ON ANY CONFUSION THE R MENTIONED OUT LOUD TOO AND GET IT IN THE NOTES.

RESPONSES:

This survey has several questions about your 2019 taxes, which are based on income earned during calendar/fiscal year 2019.

[GRID; SP]

S1Q6.

Which of the following forms or schedules did you include or expect to include with your federal income tax return for 2019?

[PROGRAMMER: DISPLAY ONE FORM TYPE PER PAGE WITH YES/NO RESPONSE OPTION FOR EACH]

1. Itemized deductions including home mortgage deductions, charitable contributions, and other types of deductions (Schedule A)

2. Interest and dividend income (Schedule B)

3. Small business income (Schedule C)

4. Capital gains or losses (Schedule D)

5. Supplemental income, such as rental income, royalties, and trusts (Schedule E)

6. Farm income (Schedule F)

7. Self-employment income (Schedule SE)

8. Employee business expenses (Form 2106)

9. Partnerships (Form 1065)

10. S Corporation (Form 1120-S)

11. Another kind of corporation (Form 1120-C)

1. Yes

2. No

3. Don’t know [TERMINATE IF ALL OF S1Q6 = 3]

COGNITIVE GOAL: Is this list exhaustive? Any trouble answering or knowing what these are?

COGNITIVE PROBES:

1. Are there other forms or schedules you file for your business that are not included in this list?

2. PROBE IF CONFUSION NOTICED: You hesitated on [FILL QUESTION]. What were you thinking about? Which other forms or schedules were difficult to decide to answer?

3. INTERVIEWER: BE SURE TO CAPTURE WHEN PARTICIPANT SAYS “I JUST GIVE IT ALL TO MY ACCOUNTANT” AND CAN’T ANSWER THE QUESTION AT ALL.

4. PROBE IF R ANSWERED SCHEDULE C OR SCHEDULE SE: How did you first know when you needed to file a Schedule C/Schedule SE?

RESPONSES:

[MUST ANSWER 1 (YES) TO AT LEAST ONE OF THE FOLLOWING: S1Q2, S1Q3, S1Q4, S1Q5, S1Q6_3, S1Q6_5, S1Q6_6, S1Q6_7, S1Q6_8, S1Q6_9, S1Q6_10, S1Q6_11, ELSE TERMINATE]

[PROGRAMMING: DEFINE SMALL_BIZ TO IDENTIFY RESPONDENTS WITH A SMALL BUSINESS]

IF ANY (S1Q3, S1Q4, S1Q5, S1Q6_3, S1Q6_5, S1Q6_6, S1Q6_8, S1Q6_9, S1Q6_10, S1Q6_11) = 1

SMALL_BIZ = 1 (SMALL BUSINESS RESPONDENT)

ELSE SMALL_BIZ = 0 (NOT A SMALL BUSINESS RESPONDENT).]

***Small business respondents must have said “Yes” to one of the following: having an LLC (S1Q3), an S Corp (S1Q4), Biz Partnership (S1Q5), or to filing/expecting to file Sched C (S1Q6_3), Sched E (S1Q6_5), Sched F (S1Q6_6), Form 2106 (S1Q6_8), Form 1065 (S1Q6_9), Form 1120-S (S1Q6_10), or Form 1120-C (S1Q6_11).***

*** Tax Filing Screening Questions ***

[SP, PROMPT]

S1Q8.

Have you filed or do you plan to file a federal individual income tax return this year?

1. Yes

2. No, but I applied for an extension

3. No, I have not filed or gotten an extension for this year

4. Not sure [TERMINATE]

[PROGRAMMER: R WILL ALSO TERMINATE IF S1Q8 = 98, 99]

COGNITIVE GOAL: How does R understand “you”? Thinking about themselves or their business? Can R separate “business” income and return from “personal” income and return?

COGNITIVE PROBES:

1. How did you interpret the word “you” in this question? PROBE IF NEEDED: “you personally filed” or “you, your business (e.g., could a tax preparer have filed on your behalf?).”

2. In your own words, how would you describe or define “federal individual income tax return”?

3. What IRS forms and schedules were you thinking of when answering this question?

RESPONSES:

[SHOW IF S1Q8 = 1 or 2 (Have filed or got extension this year)]

[SP, PROMPT]

S1Q9.

Thinking about your individual taxes, who <u>prepared</u> your federal individual income tax return or extension filing this year?

1 I did

2 A friend or family member (relative)

3 An independent accountant/CPA

4 A tax preparer at a tax preparation business such as H&R Block or Jackson Hewitt

5 Other paid professional [IF langswitch = ES, SHOW ‘Otro profesional pagado, por ejemplo, un notario’]

6 A volunteer preparer from a community organization (do not count a tax software company’s promotional events)

7 Someone else

77 Don’t know [TERMINATE]

[PROGRAMMER: R WILL TERMINATE IF S1Q8a = 77, 98, 99]

[SHOW IF S1Q9 > 1 (Did not self-prepare)]

[PROGRAMMING: ROTATE LIST ORDER]

S1Q10.

Please explain why you did not/will not prepare your own individual tax return this year.

[SMALL TEXTBOX]

[SHOW IF S1Q9 > 1 (Did not self-prepare)]

[SC, PROMPT, TERMINATE IF SKIPPED/REFUSED]

S1Q10a.

How familiar are you with your individual income tax return that was or will be prepared and filed this year?

1. Very familiar

2. Somewhat familiar

3. Not very familiar

4. Not familiar at all [TERMINATE]

[PROGRAMMER: R WILL TERMINATE IF S1Q10a = 77, 98, 99]

COGNITIVE GOAL: Is R really familiar with individual income tax return? Particularly if someone said “not very familiar” do they know more than they think? (Note, we’ll need to track following responses against this but asking some probes here to start.)

COGNITIVE PROBES:

1. How did you decide on this answer?

2. Do you think it would change your answer if we asked “how familiar are you with the details of your individual income tax return”? If yes, how/why would it change your answer?

RESPONSES:

[ASK IF S1Q8 = 3 (Have not filed and no extension)]

S1Q11.

Why are you not filing a federal individual income tax return this year?

1. I did not meet the minimum income requirement

2. I know I will owe taxes and am not able to pay right now

3. Other (please specify): ______[SMALL TEXTBOX]________

[ASK IF S1Q9 = 1 (Reasons related to not having a filing requirement)]

S1Q11a.

How did you know you didn’t have to file this year? Please select that option that best represents how you made this decision.

1. Through the Interactive Tax Assistant on IRS.gov

2. Through my own research

3. Advice of a tax professional

4. Advice of a friend or family member

5. Advice of a business contact

6. Some other way (please specify): ______[SMALL TEXTBOX]________

[SHOW IF S1Q8 = 1 or 2 (Have filed or got extension this year)]

[SP, PROMPT, TERMINATE IF SKIPPED]

S1Q12.

Which <u>filing status</u> did or will you use on your individual income tax return this year?

1 Single

2 Married, filing jointly

3 Married, filing separately

4 Head of Household (single with dependent parent or child)

5 Qualifying widow(er) with dependent child

77 Don’t know [TERMINATE]

[PROGRAMMER: R WILL TERMINATE IF S1Q8a = 77, 98, 99]

[SHOW IF SMALL_BIZ = 1 (Small Business)]

[SP, PROMPT]

S1Q13.

Has your business filed or does it plan to file a federal <u>corporate or partnership</u> income tax return in 2020 for 2019?

1. Yes

2. No, I do not file a business return that is separate from my personal income tax return

3. No, but I applied for an extension

4. No, I have not filed or gotten an extension for this year

5. Not sure

COGNITIVE GOAL: Determine if R sees corporate return as separate from individual return. In some instances, it is not. Particularly want to ask this if said not sure. Finding out why.

COGNITIVE PROBES:

1. If R answered, “4=not sure”, Why did you select not sure?

2. Is this question easy or difficult to answer when thinking about your business taxes?

RESPONSES:

[SHOW IF S1Q13 = 1 or 2 (Have filed corp/partnership or got extension this year)]

[SP, PROMPT]

S1Q14.

Who prepared your federal corporate/partnership income tax return or extension filing this year?

1 I did

2 An independent accountant/CPA

3 An employee of the small business or partnership

4 A friend or family member (relative)

5 A tax preparer at a tax preparation business such as H&R Block or Jackson Hewitt

6 Other paid professional [IF langswitch = ES, SHOW ‘Otro profesional pagado, por ejemplo, un notario’]

7 A volunteer preparer from a community organization (do not count a tax software company’s promotional events)

8 Someone else

77 Don’t know

[SHOW IF S1Q14 > 1 (Did not self-prepare)]

[PROGRAMMING: ROTATE LIST ORDER]

S1Q14a.

Please explain why you did/will not prepare your own corporate/partnership tax return this year.

[SMALL TEXTBOX]

SCREENOUT1

Thank you for your time but we are only interested in people who are self-employed or run a small business.

SCREENOUT2

Thank you for your time but we are only interested in people who are self-employed or run a small business and filed specific types of tax returns.

Section 2: About Your Business(es) or Self-Employment Situation

(9 questions)

*** Other Employment ***

[SHOW IF ELIG = 1 (ALL R SCREENED IN AS ELIGIBLE IN SECTION 1)]

S2Q1.

In addition to your self-employment or small business work, do you have other hourly or salaried jobs?

1. Yes – One hourly or salaried job

2. Yes – More than one hourly or salaried job

3. No – I’m only self-employed

*** Self-Employment Situation ***

[SHOW IF S1Q2 = 1 (Self-Employed)]

S2Q2.

How long have you been self-employed?

1. Less than 1 year

2. 1-5 years

3. 6-10 years

4. More than 10 years

[SHOW IF S1Q2 = 1 (Self-Employed)]

S2Q3.

Self-employment situations come in many different forms. For this survey, think of a “job” as a set of tasks that you do regularly for pay. For example, if you are self-employed as a pet sitter, count that as one job. If you are also self-employed as a ride share driver, count that as a second job.

Altogether, about how many self-employment jobs do you currently have?

1. 1

2. 2-3

3. 4-5

4. More than 5

[SHOW IF S1Q2 = 1 (Self-Employed)]

S2Q4.

Which of the options below best describes your current self-employment job? <IF S2Q3 > 1 (More than 1 current SE job) SHOW: For this question, please think about the self-employment job where you earn the most money.>

1. Accommodation and Food Services

2. Administrative and Support and Waste Management and Remediation Services

3. Agriculture, Forestry, Fishing and Hunting

4. Arts, Entertainment, and Recreation

5. Construction

6. Educational Services

7. Finance and Insurance

8. Health Care and Social Assistance

9. Information

10. Management of Companies and Enterprises

11. Manufacturing

12. Mining

13. Professional, Scientific, and Technical Services

14. Public Administration

15. Real Estate Rental and Leasing

16. Retail Trade

17. Transportation and Warehousing

18. Utilities

19. Wholesale Trade

20. Other Services

*** Small Business Situation ***

[SHOW IF SMALL_BIZ = 1 (Small Business)]

S2Q5.

How long have you been an owner or partner in a small business?

1. Less than 1 year

2. 1-5 years

3. 6-10 years

4. More than 10 years

[SHOW IF SMALL_BIZ = 1 (Small Business)]

S2Q6.

Altogether, about how many small businesses do you currently have?

1. 1

2. 2-3

3. 4-5

4. More than 5

[SHOW IF SMALL_BIZ = 1 (Small Business)]

S2Q7.

Which of the options below best describes your current small business? <IF S2Q6 > 1 (More than 1 current SB) SHOW: For this question, please think about the small business where you earn the most money.>

1. Accommodation and Food Services

2. Administrative and Support and Waste Management and Remediation Services

3. Agriculture, Forestry, Fishing and Hunting

4. Arts, Entertainment, and Recreation

5. Construction

6. Educational Services

7. Finance and Insurance

8. Health Care and Social Assistance

9. Information

10. Management of Companies and Enterprises

11. Manufacturing

12. Mining

13. Professional, Scientific, and Technical Services

14. Public Administration

15. Real Estate Rental and Leasing

16. Retail Trade

17. Transportation and Warehousing

18. Utilities

19. Wholesale Trade

20. Other Services

[SHOW IF SMALL_BIZ = 1 (Small Business)]

S2Q8.

In 2019, did you pay employees or independent contractors to do work for your business?

1. Yes

2. No

COGNITIVE GOAL: Do participants understand “in 2019” as calendar year, or are they thinking of a fiscal year? Helpful or harder to be more specific about the dates we want?

COGNITIVE PROBES:

1. What months were you thinking of for “2019”? (INTERVIEWER: GET MORE INFO ABOUT THEIR FISCAL YEAR USED IF THEY MENTION ONE).

2. How would you answer if the question asked about paying workers “in the last 2 years” instead of “in 2019”? What about in the last 5 years?

3. How do you think you would understand/answer this question if you were answering in June?

RESPONSES:

[SHOW IF S2Q8 = 1 (Paid workers in 2019)]

S2Q8a.

What kind of workers did you pay in 2019?

1. Only employees

2. Mostly employees, but some independent contractors

3. Mostly independent contractors, but some employees

4. Only independent contractors

5. Not sure

Section 3: Tax Requirements Awareness and Expectations

(30 questions)

*** General Knowledge ***

[MEDIUM TEXTBOX; prompt]

S3Q1.

How do you know what income you need to claim on your taxes in relation to your self-employment or small business?

COGNITIVE GOAL: Participant’s comprehension of the question. Time period clarity. Are there any response options that could be created here? Change in knowledge over time.

COGNITIVE PROBES:

1. In your own words, what do you think this question is asking?

2. What time period were you thinking about?

3. Thinking back about the history of your business, how do you think you would’ve answered when you first became self-employed or a small business owner?

4. IF PARTICIPANT IS BOTH SELF-EMPLOYED AND SMALL BUSINESS OWNER: How do your answer differ for your self-employment status versus your small business status?

RESPONSES:

[MEDIUM TEXTBOX; prompt]

S3Q2.

How did you know what records you need to keep for tax purposes regarding your self-employment or small business?

COGNITIVE GOAL: Participant’s comprehension of the question. Are there any response options that could be created here? Change in knowledge about records over time.

COGNITIVE PROBES:

1. In your own words, what do you think this question is asking?

2. Thinking back about the history of your business, how do you think you would’ve answered when you first became self-employed or a small business owner?

3. IF PARTICIPANT IS BOTH SELF-EMPLOYED AND SMALL BUSINESS OWNER: How do your answer differ for your self-employment status versus your small business status?

RESPONSES:

S3Q3.

How knowledgeable are you about the tax laws for your self-employment and/or small business situation?

1. Very knowledgeable

2. Somewhat knowledgeable

3. Not very knowledgeable

4. Not knowledgeable at all

S3Q4.

How knowledgeable are you about the record keeping requirements for your self-employment and/or small business taxes?

1. Very knowledgeable

2. Somewhat knowledgeable

3. Not very knowledgeable

4. Not knowledgeable at all

COGNITIVE GOAL: How does the participant understand “knowledgeable” and similar words e.g., “familiar” and “aware”? Addition of “details of” to the question as worded. Difficulty combining self-employment and small business laws and any differences in answers if split.

COGNITIVE PROBES:

1. In your own words, what do you think this question is asking?

2. If instead of “how knowledgeable” we asked you “how familiar” you are with the tax laws, how would you have answered? What if we asked “how aware” you are of the tax laws?

3. Do you think it would change your answer if we asked “how knowledgeable you are about the details of the tax laws? If yes, how would it change your answer?

4. IF PARTICIPANT IS BOTH SELF-EMPLOYED AND SMALL BUSINESS OWNER: How easy or hard was it to combine your answers for self-employment and small business tax laws? How would you have answered if they were asked about separately?

RESPONSES:

*** Taxable Income (gig income, virtual currency) ***

S3Q5.

Did you have any income from “gig” or “sharing economy” work in 2019, such as driving for a ride-sharing company, pet sitting, rental host (such as Airbnb), or other on-demand work, services, or goods?

1 Yes

2 No

COGNITIVE GOAL: Is it clear what “gig work” means here? If no, why not? How could we make it clearer (e.g., another term, more examples)?

COGNITIVE PROBES:

1. Can you define “gig work” in your own words?

2. Does “sharing economy” mean anything to you? Can you define it in your own words?

3. What other words do you use to define that work?

RESPONSES:

[SHOW IF S3Q5 = 1 (Had gig income)]

S3Q5a.

How easy or difficult was it to figure out how to report your gig work income on your taxes overall?

1. Not applicable, I did not report that income

2. Very easy

3. Somewhat easy

4. Somewhat difficult

5. Very difficult

[SHOW IF S3Q5 = 1 (Had gig income)]

S3Q5b.

How easy or difficult was it to figure out what expenses from your gig work you could claim on your taxes?

1. Not applicable, I did not have any expenses to claim

2. Very easy

3. Somewhat easy

4. Somewhat difficult

5. Very difficult

[SHOW IF S3Q5 = 1 (Had gig income)]

S3q5c.

How easy or difficult was it to figure out what records to keep from your gig work for your taxes?

1. Not applicable, I did not report that income

2. Very easy

3. Somewhat easy

4. Somewhat difficult

5. Very difficult

COGNITIVE GOAL: Assess how comfortable people are answering this especially if did not report it.

COGNITIVE PROBES:

1. If participant answered 1=they did not report it: Why did you not report it? Remember that anything you say is confidential.

2. If we asked how easy or difficult to figure out how to report your expenses instead, would you answer differently?

3. If we asked how easy or difficult whether to report your income, would you answer differently?

RESPONSES:

S3Q6.

Including income you received and payments you made, was any of the business you conducted in 2019 done with virtual currency such as BitCoin?

1 Yes

2 No

[SHOW IF S3Q6 = 1 (Used virtual currency)]

S3Q6a.

How easy or difficult was it to figure out how to report your virtual currency income?

1. Not applicable, I did not report that income

2. Very easy

3. Somewhat easy

4. Somewhat difficult

5. Very difficult

COGNITIVE GOAL: Gather more info about unreported virtual currency. Is it clear this question is asking about virtual currency income for your business (versus personal virtual currency income)?

COGNITIVE PROBES:

1. If participant answered 1=they did not report it: Can you tell me more about that income or why did you not report it? Remember that anything you say is confidential.

2. In your own words, what income is this question asking about? Did you include any personal income and payments in your response or only business income and payments?

3. How would you answer if we asked “How easy or difficult was it to figure out whether to report your virtual currency income (as opposed to how)?”

RESPONSES:

*** Employment Tax ***

[SHOW IF S2Q8=1 (Paid workers in 2019)]

S3Q7.

You indicated earlier that you paid employees or independent contractors to do work for your business in 2019. Did you use a payroll company?

1. Yes, I used a payroll company

2. No

[SHOW IF S2Q8=1 (Paid workers in 2019)]

S3Q7.

How easy or difficult was it to determine whether any of these workers were employees (receiving a W2) versus independent contractors (receiving a 1099)?

1. Very difficult

2. Somewhat difficult

3. Somewhat easy

4. Very easy

[SHOW IF S3Q8 = 1 or 2]

[MEDIUM TEXTBOX; prompt]

S3Q7a.

How could the IRS make it easier for you to determine whether your workers are employees or independent contractors?

[SHOW IF S2Q8=1 (Paid workers in 2019)]

S3Q8.

Are you aware of IRS Form SS-8 that requests the IRS to make the decision about whether your workers are employees or independent contractors?

1. Yes

2. No

[SHOW IF S3Q8=1]

S3Q8a.

Have you ever used IRS Form SS-8 to request a worker status determination from the IRS?

1. Yes

2. No

[SHOW IF S3Q8a=1]

S3Q8b.

Please rate your satisfaction with using IRS Form SS-8.

1. Very dissatisfied

2. Dissatisfied

3. Neither satisfied nor dissatisfied (neutral)

4. Satisfied

5. Very satisfied

[SHOW IF S3Q8b = 1 OR 2]

[MEDIUM TEXTBOX; prompt]

S3Q8c.

How could the IRS improve Form SS-8?

[SHOW IF S2Q8=1 (Paid workers in 2019)]

S3Q9.

Are you aware of the following employment (payroll) tax forms?

1. Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return

2. Form 941, Employer’s Quarterly Federal Tax Return

3. Form 944, Employer’s Annual Federal Tax Return

1. Yes

2. No

[SHOW IF ANY (S3Q9_1, S3Q9_2, S3Q9_3) = 1 (Yes, aware of 940, 941, or 944)]

S3Q10.

Did you file any of the following employment (payroll) tax forms in 2019?

1. [SHOW IF S3Q10_1=1] Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return

2. [SHOW IF S3Q10_2=1] Form 941, Employer’s Quarterly Federal Tax Return

3. [SHOW IF S3Q10_3=1] Form 944, Employer’s Annual Federal Tax Return

1. Yes

2. No

[SHOW IF ANY (S3Q10_1, S3Q10_2, S3Q10_3) = 1 (Yes, filed 940, 941, or 944)]

S3Q11.

How easy or difficult was it to determine which employment (payroll) tax forms to file?

1. Very easy

2. Somewhat easy

3. Somewhat difficult

4. Very difficult

COGNITIVE GOAL: Determine if employment tax or payroll tax is a more common term. Determine if R can answer this question if multiple employment tax forms filed.

COGNITIVE PROBES:

1. Are you more familiar with the term employment tax or payroll tax? Do you have preferred way of referring to this?

2. PROBE IF PARTICIPANT ANSWERED “YES” TO MORE THAN ONE IN S3Q11: How easy or difficult was it to give an overall answer to S3Q12? Would your answer be different for each form if you had that option?”

RESPONSES:

[SHOW IF ANY (S3Q10_1, S3Q10_2, S3Q10_3) = 1 (Yes, filed 940, 941, or 944)]

[SC, GRID]

S3Q12.

How did you file…?

1. [SHOW IF S3Q11_1=1] Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return

2. [SHOW IF S3Q11_2=1] Form 941, Employer’s Quarterly Federal Tax Return

3. [SHOW IF S3Q11_3=1] Form 944, Employer’s Annual Federal Tax Return

1. e-filed

2. Paper/mail

3. Not sure

[SHOW IF ANY (S3Q12_1, S3Q12_2, S3Q12_3) = 2 (Filed any by paper)]

S3Q12a.

[MEDIUM TEXTBOX; prompt]

Why did you choose to file by paper?

[SHOW IF ANY (S3Q10_1, S3Q10_2, S3Q10_3) = 1 (Yes, filed 940, 941, or 944)]

[MC]

S3Q13.

Is the person who prepared your employment (payroll) tax form(s) the same person who prepared your business tax return?

1 Yes

2 No

[SHOW IF S3Q13 = 2 (No, different person prepared employment tax forms)]

[MC]

S3Q14.

Who prepared your employment (payroll) tax form(s)? Select all that apply.

1 I did

2 A payroll company

3 An independent accountant/CPA

4 An employee of the small business or partnership

5 A friend or family member (relative)

6 A tax preparer at a tax preparation business such as H&R Block or Jackson Hewitt

7 Other paid professional [IF langswitch = ES, SHOW ‘Otro profesional pagado, por ejemplo, un notario’]

8 A volunteer preparer from a community organization (do not count a tax software company’s promotional events)

9 Someone else

77 Don’t know

Section 4: Communicating with the IRS

(62 questions)

*** Awareness & Use Questions ***

[SC, GRID]

S4Q1.

The following questions are about your awareness of different ways to contact the IRS.

Did you know you could get information or help such as obtaining forms or tax law information, checking refund status or getting help to resolve a notice from the IRS in the following ways?

1. Calling an IRS Toll-Free line

2. Visiting a local IRS office (Taxpayer Assistance Center, walk-in center)

3. Visiting the IRS website (IRS.gov)

4. Sending regular mail to the IRS

5. Getting help from a volunteer tax preparer from a community organization

6. Using IRS2Go App (for mobile devices)

1. Yes, I was aware

2. No, I was not aware

[SHOW IF S4Q1_3 = 1 (YES, AWARE OF IRS.GOV)] 

[GRID, SP; repeat header 4, 4, 4]

S4Q2.

Which of the following IRS.gov (online) services/tools have you heard of?

[ROTATE GRID ITEMS 1-12]

1. Interactive Tax Assistant (ITA) (asks you a series of questions that guide you to a response tailored to your situation)

2. IP PIN (Identity Protection Personal Identification Number) Application (a unique number from the IRS used for identity theft protection)

3. IRS Withholding Calculator (helps you determine the number of withholdings you ask your employer to take on your W-4)

4. Online Employer Identification Number (EIN) Request (online application to receive an EIN)

5. Tax Trails (helps you answer a question like “Do I qualify for a filing extension” by asking you a series of questions that guide you to a response tailored to your situation)

6. Where's My Refund? (check the status of your refund)

7. Where’s My Amended Return? (check the status of your amended return (1040X))

8. Get Transcripts Online (online downloading of transcript or prior year return)

9. EITC Assistant (helps taxpayers determine Earned Income Tax Credit eligibility)

10. Directory of Tax Return Preparers (find preparers in your area who hold professional credentials recognized by the IRS)

1. Yes, I’ve heard of this

2. No, I haven’t heard of this

[SHOW IF S4Q1_3 = 1 (YES, AWARE OF IRS.GOV)] 

[GRID, SP]

S4Q3.

Which of the following IRS.gov (online) <u>payment</u> services/tools have you heard of?

[ROTATE GRID ITEMS 1-5]

1. Electronic Federal Tax Payment System (EFTPS) (allows taxpayers to transmit regular tax payments electronically)

2. Direct Pay (pay money you owe the IRS securely directly from your bank account for free)

3. Making an IRS payment using a credit/debit card (card payment with a fee)

4. IRS Online Account (secure tool allowing taxpayers to view their IRS account balance including penalties and interest)

5. Online Payment Agreement (OPA) (online application for an installment agreement)

1. Yes, I’ve heard of this

2. No, I haven’t heard of this

[IF any (S4Q1_1 to S4Q1_7) = 1]

[DISPLAY]

INTRO1.

The next questions are about <u>any</u> contact you may have had with the Internal Revenue Service (IRS) in the <i>past 12 months</i>.

[IF S_RACETH = 4] Please include all contacts regardless of whether they were in Spanish or English.

[IF any (S4Q1_1 to S4Q1_7) = 1]

[SC, GRID] [shade all rows grey]

S4Q4.

In the <i>past 12 months</i>, did you personally do any of the following?

Select <u>one</u> answer from each row in the grid

1. [ASK IF S4Q1_1 = 1] Called an IRS Toll-Free line

2. [ASK IF S4Q1_2 = 1] Visited a local IRS office (Taxpayer Assistance Center, walk-in center)

3. [ASK IF S4Q1_3 = 1] Visited the IRS website to obtain specific information. Please do not count casual browsing.

4. [ASK IF S4Q1_4 = 1] Contacted the IRS through regular mail

5. [ASK IF S4Q1_6 = 1] Got help from a volunteer tax preparer from a community organization

6. [ASK IF S4Q1_7 = 1] Used the IRS2Go App (for mobile devices)

1. Yes

2. No

[SHOW IF S4Q4_3 = 1 (Visited IRS.gov within past 12 months) AND ANY (S4Q2 grid = 1 OR S4Q3 grid = 1) (Aware of any IRS.gov services/tools)]

[SC,GRID] [shade all rows grey]

S4Q5.

Which of the following services/tools on the IRS website have you personally used in the past 12 months?

[KEEP SAME ORDER AS S4Q2 GRID]

1. [SHOW IF S4Q3_1 = 1] Made a payment to the IRS using the Electronic Federal Tax Payment System (EFTPS) (allows taxpayers to transmit regular tax payments electronically)

2. [SHOW IF S4Q3_2 = 1] Made a payment to the IRS using Direct Pay (pay money you owe the IRS securely directly from your bank account for free)

3. [SHOW IF S4Q3_3 = 1] Made a payment to the IRS using a credit/debit card on IRS.gov (card payment with a fee)

4. [SHOW IF S4Q3_4 = 1] Online Account (secure tool allowing taxpayers to view their IRS account balance including penalties and interest)

5. [SHOW IF S4Q3_5 = 1] Made a payment to the IRS using an Online Payment Agreement (OPA) (online application for an installment agreement)

6. [SHOW IF S4Q2_1 = 1] Interactive Tax Assistant (ITA) (asks you a series of questions that guide you to a response tailored to your situation)

7. [SHOW IF S4Q2_2 = 1] IP PIN (Identity Protection Personal Identification Number) Application (a unique number from the IRS used for identity theft protection)

8. [SHOW IF S4Q2_3 = 1] IRS Withholding Calculator (helps you determine the number of withholdings you ask your employer to take on your W-4)

9. [SHOW IF S4Q2_4 = 1] Online Employer Identification Number (EIN) Request (online application to receive an EIN)

10. [SHOW IF S4Q2_6 = 1] Tax Trails (helps you answer a question like “Do I qualify for a filing extension” by asking you a series of questions that guide you to a response tailored to your situation)

11. [SHOW IF S4Q2_7 = 1] Where's My Refund? (check the status of your refund)

12. [SHOW IF S4Q2_8 = 1] Where’s My Amended Return? (check the status of your amended return (1040X)

13. [SHOW IF S4Q2_9 = 1] Get Transcripts Online (online downloading of transcript or prior year return)

14. [SHOW IF S4Q2_11 = 1] Earned Income Tax Credit Assistant (helps taxpayers determine Earned Income Tax Credit eligibility)

15. [SHOW IF S4Q2_12 = 1] Directory of Tax Return Preparers (find preparers in your area who hold professional credentials recognized by the IRS)

1 Yes

2 No

*** Online Accounts ***

[SHOW IF S4Q3_4 = 1 (Heard of online account)]

S4Q6.

Have you ever used your IRS online account?

1. Yes

2. No

3. I have tried to use IRS online account but was not able to setup an account

[SHOW IF S4Q6 = YES]

S4Q6a.

Please rate your satisfaction with your IRS online account.

1 Very dissatisfied

2 Dissatisfied

3 Neither satisfied nor dissatisfied

4 Satisfied

5 Very Satisfied

[SHOW IF S4Q6a = 1 OR 2]

[MEDIUM TEXTBOX; prompt]

S4Q6a1.

Why were you dissatisfied with your IRS online account?

*** Third Party Authorization ***

[SHOW IF S1Q9 > 1 OR S1Q14 > 1 (Someone else prepared individual return or corporate/partnership return)]

S4Q8.

To your knowledge, what is the IRS able to discuss with your tax preparer about your tax return?

1. The IRS is not allowed to communicate with my tax preparer about anything to do with my tax return without my permission

2. The IRS can only communicate with my tax preparer about certain aspects of my tax return without my permission

3. If the preparer signed the tax return, the IRS can talk to them about the return but only that return

4. The IRS can communicate with my tax preparer about any aspect of my tax return that he/she filed

COGNITIVE GOAL: How participants understand “prepare” v. “file” v. “signing”. Do they catch “without my permission”? What do participants understand about IRS being able to discuss their taxes or tax return with their tax preparer?

COGNITIVE PROBES:

1. On the last response, we said, “the IRS can communicate with my tax preparer about any aspect of my tax return that he/she filed.” Would you answer differently or is there a difference if we asked “he/she prepared” instead of “filed”? IF YES: How would you have answered?

2. In your own words, what’s the difference between “preparing” and “filing”? “Signing”?

3. Are there any other options you would expect to see that aren’t here?

4. In your own words what’s the difference between the first two and last two options? (IF TIME: Can you paraphrase each of the options in your own words).

5. What does “without my permission” mean to you?

6. If we asked what is the IRS able to discuss with your tax preparer about your “taxes” instead of “tax return” would this change your response?

RESPONSES:

[SHOW IF S1Q9 > 1 OR S1Q14 > 1 (Someone else prepared individual return or corporate/partnership return)]

[GRID; SP]

S4Q9.

Are you aware of the following ways of authorizing the IRS to communicate with your tax preparer about your taxes?

1. Power of Attorney

2. Tax Information Authorization (TIA)

3. Limited Tax Information Authorization

4. Third Party Designee (Checkbox Authorization)

5. Oral Tax Information Authorization

6. Oral Disclosure Consent

1. Yes

2. No

COGNITIVE GOAL: Is it clear what these options are? Would definitions of these help?

COGNITIVE PROBES:

1. In your own words, what do you think we’re asking with this question? In your own words what does “aware of” mean?

2. How confident where you in selecting the options you said you were aware of? This may be different for each option. What made it hard to decide whether you were aware?

3. Do you think definitions would have helped you answer these questions or just make the questions harder or more confusing?

4. Are there other ways to authorize the IRS to communicate with your tax preparer about your taxes that you are know of?

RESPONSES:

[SHOW IF ANY (S4Q9_1, S4Q9_2, S4Q9_3, S4Q9_4, S4Q9_5, S4Q9_6) = 1 (Yes, aware of any third party auth types)]

S4Q10.

Have you ever authorized any of these types of third-party access to your IRS filing information?

1. [SHOW IF S4Q9_1 = 1] Power of Attorney

2. [SHOW IF S4Q9_2 = 1] Tax Information Authorization (TIA)

3. [SHOW IF S4Q9_3 = 1] Limited Tax Information Authorization

4. [SHOW IF S4Q9_4 = 1] Third Party Designee (Checkbox Authorization)

5. [SHOW IF S4Q9_5 = 1] Oral Tax Information Authorization

6. [SHOW IF S4Q9_6 = 1] Oral Disclosure Consent

1. Yes

2. No

3. Don’t know

[SHOW IF S1Q9 > 1 OR S1Q14 > 1 (Someone else prepared individual return or corporate/partnership return)]

S4Q11.

Have you ever wanted your tax preparer to get information from the IRS about your taxes, or for the IRS to communicate directly with your tax preparer?

1. Yes

2. No

[SHOW IF S4Q11 = 1 (If yes)]

S4Q11a.

[MEDIUM TEXTBOX; prompt]

What, if anything, did you do in that situation?

[SHOW ALL]

[MP]

S4Q12.

In the <i>future</i>, where would you prefer to get <u>general tax information</u>, including information about changes in tax laws?

Select <i>all</i> that apply

1. IRS.gov

2. IRS forms and publications

3. IRS telephone line

4. IRS in-person/local IRS office (Taxpayer Assistance Center, walk-in center)

5. IRS sponsored tax class or seminar

6. IRS2Go App (for iPhone and Android mobile devices)

7. Accountant/CPA/tax preparer

8. Tax preparation software (TurboTax, H&R Block, TaxAct, etc.)

9. Family/Friend

10. Library

11. Media such as radio, television, or newspapers

12. [IF LANGSWITCH=ES] Notario

13. Post Office

14. Social media (Facebook, Twitter, etc.)

15. Other (please specify): ____[SMALL TEXTBOX]____

Section 5: Payments to the IRS

(12 questions)

*** Estimated Taxes ***

S5Q1.

Did you pay any quarterly estimated taxes in 2019? These are paid to the IRS periodically as advance pre-payment of taxes you expect to owe.

1. Yes

2. No

3. I don’t know

[SHOW IF S5Q1 = 1 (Yes, paid quarterly estimated taxes)]

S5Q2.

How easy or difficult was it to determine whether you needed to file estimated quarterly taxes?

1. Very easy

2. Somewhat easy

3. Somewhat difficult

4. Very difficult

[SHOW IF S5Q1 = 1 (Yes, paid quarterly estimated taxes)]

[MP]

S5Q3.

What method(s) did you use to pay your quarterly estimated taxes? Select all that apply.

[ROTATE ITEMS 1-5]

1. Direct Pay (paying securely directly from your bank account for free)

2. Electronic Federal Tax Payment System (EFTPS) (allows you to transmit regular tax payments electronically)

3. Online Payment Agreement (OPA) (online application for an installment agreement)

4. Made an IRS payment using a credit/debit card (card payment with a fee)

5. Something else (please specify): ______[SMALL TEXTBOX]______

[SHOW IF S5Q1 = 1 (Yes, paid quarterly estimated taxes)]

S5Q4.

Which of the following best describes how you knew whether you have to pay quarterly estimated taxes?

1. I did what I have always done

2. My tax preparer or accountant told me

3. Information I found on the IRS website or in an IRS publication

4. Information I found on another website or publication

5. Friend or family member

6. Tax preparation software like TurboTax

7. I found out another way (please specify): ___[SMALL TEXTBOX]___

*** Balance Due ***

S5Q5.

Have you or your business ever had a balance due to the IRS that you didn’t pay at the time of filing?

1. Yes

2. No

[SHOW IF S5Q5 = 1 (Yes, have had a balance due to pay off)]

S5Q6.

Please think about the most recent year when you had a balance due. Did you make any payments toward the balance?

1. Yes

2. No

[SHOW IF S5Q5 = 1 (Yes, have had a balance due to pay off)]

[MEDIUM TEXTBOX]

S5Q6a.

What barriers, if any, did you face in making timely payments to the IRS?

[SHOW IF S5Q6 = 1 (Yes, have had made payments on a balance due)]

[MP]

S5Q7.

What method(s) did you use to make payments? Select all that apply.

[ROTATE ITEMS 1-5]

1. Direct Pay (paying securely directly from your bank account for free)

2. Electronic Federal Tax Payment System (EFTPS) (allows you to transmit regular tax payments electronically)

3. Online Payment Agreement (OPA) (online application for an installment agreement)

4. Made an IRS payment using a credit/debit card (card payment with a fee)

5. Something else (please specify): ______[SMALL TEXTBOX]______

S5Q8.

Did you know that there is a penalty for not filing (or getting an extension) before the tax filing deadline?

1. Yes

2. No

S5Q9.

Did you know that a balance owed to the IRS starts to accrue interest after the tax filing deadline?

1. Yes

2. No

*** Payment Plans (Individuals or Businesses) ***

[SHOW IF S5Q5 = 1 (Yes, have had a balance due to pay off)]

S5Q10.

Have you or your business ever had a payment plan with the IRS?

1. Yes

2. No

[SHOW IF S5Q10 = 1 (Yes, have had a payment plan)]

S5Q10a.

How easy or difficult was it track the balance of that payment plan?

1. Very easy

2. Somewhat easy

3. Somewhat difficult

4. Very difficult

Section 6: Notices from the IRS

(12 questions)

[GRID; SP]

S6Q1.

IRS notices are mailed letters about issues such as balance dues, overpayments, underpayments, information about tax credits or requests for more information about a filed tax return. Did you receive a notice in the mail from the IRS regarding your self-employment or small business taxes?

1. Within the past 12 months

2. 1-2 years ago

3. 3-5 years ago

4. More than 5 years ago

1. Yes

2. No

77 Not sure

[SHOW IF ANY (S6Q1_1 to S6Q1_4) = 1 (Ever received a notice)]

[SP; PROMPT]

S6Q2.

Please think about your <i>most recent</i> notice from the IRS. After receiving the notice, did you understand why you had received it?

1. Yes, I understood why I received the notice

2. No, I did not understand why I received the notice

3. I never read the notice

1. Don’t remember

[SHOW IF S6Q2 = 1 OR 2 (Read notice)]

[SP; PROMPT]

S6Q3.

After reading the notice, did you know what action you needed to take?

1. Yes

2. No

3. No action was necessary

1. Don’t remember

[SHOW IF ANY (S6Q1_1 to S6Q1_4) = 1 (Ever received a notice)]

[SP; PROMPT]

S6Q4.

What was your most recent notice about?

1. An error on the return such as inaccurate responses or miscalculations

2. A payment issue such as not making the required payment to the IRS

3. A refund issue such as receiving a larger refund than anticipated or having a refund held by the IRS

4. A filing issue such as filing late, missing forms, or not filing

5. A request for information/proof for items on my tax return (correspondence exam)

6. Credits you might be eligible for but did not claim

7. Identity theft

8. Other (please specify): ___[SMALL TEXTBOX]___

9. The purpose of the notice was not clear

77 Don’t remember

[SHOW IF S6Q4 = 1 (Error on return)]

[SP; PROMPT]

S6Q4a.

Which of the following best describes the error on the return described in your most recent notice?

1. Under-reported income

2. Incorrect amount of withholding

3. Incorrect filing status

4. Incorrect Social Security Number

5. Made an error with the Shared Responsibility Payment

6. Claimed a credit for which I didn’t qualify

7. Other math/calculation error

8. Missing form or signature

9. Other (please specify): ______[SMALL TEXTBOX]______

1. Don’t remember

[SHOW IF S6Q4 = 1 (Error on return)]

[SP; PROMPT]

S6Q4b.

Did this result in a refund, owing money to the IRS, or no change?

1. Refund

2. Owed money to IRS

3. No change

1. Don’t remember

[SHOW IF S6Q4b = 2 (Owed IRS)]

[SP]

S6Q4b_1.

You indicated earlier that your most recent notice said you owed money to the IRS. Which of the following actions did you take to resolve your balance due notice?

1. Paid the full amount owed to the IRS

2. Arranged for an Installment Agreement with the IRS with direct debit from a bank account

3. Arranged for an Installment Agreement with the IRS without direct debit

4. Arranged for an Offer In Compromise

5. None of the above

1. Don’t remember

[SHOW IF S6Q4 = 2 OR 3 (Payment or refund issue)]

[SP; PROMPT]

S6Q4c.

Which of the following best describes the payment or refund issue that was explained in your most recent notice?

1. I didn’t make a payment with my return

2. I didn’t pay the full amount due with my return

3. I didn’t make an Installment Agreement payment

4. My refund was being held

5. My refund was used to pay a tax debt from a prior year

6. I received an additional/larger refund

7. Other (please specify): ______[SMALL TEXTBOX]______

1. Don’t remember

[SHOW IF S6Q4 = 4 (Filing issue)]

[SP; PROMPT]

S6Q4d.

Which of the following best describes the filing issue regarding your most recent notice?

1. Didn’t file a return

2. Didn’t sign return or form

3. Missing or incorrect forms

4. Penalty for late filing

5. Other (please specify): ______[SMALL TEXTBOX]______

1. Don’t remember

Section 7: Attitudes & Beliefs

(7 questions)

[GRID; SP]

S7Q1.

Please indicate your agreement with the following statements about taxes:

1. Contacting the IRS will increase your chances of being audited

2. The IRS should conduct outreach to small businesses about tax filing requirements

3. I trust the information I get from friends about taxes

4. I have claimed an expense on my taxes based on something I know a similar business is doing

5. Money earned overseas is not subject to U.S. income tax

6. If income I earn is not reported to the IRS by others, I do not need to claim it on my taxes

7. e-Filing will increase your chances of being audited

1. Strongly disagree

2. Disagree

3. Neither agree nor disagree (neutral)

4. Agree

5. Strongly agree

COGNITIVE GOAL: How confident is the participant in their answers to these questions? Are they comfortable answering them?

COGNITIVE PROBES:

1. How confident or unconfident where you in your answers? What made it hard to choose one response for each question?

2. Did any of the questions make you uncomfortable? Which ones? Why?

3. Can you paraphrase the last question, “if income I earn is not reported to the IRS by others, I do not need to claim it on my taxes,” in your own words? What would that situation look like?

RESPONSES:

Page 59