SUPPORTING STATEMENT
Internal Revenue Service
Form 5307 Application for determination for Adopters of Modified Volume Submitter Plans
OMB Control Number 1545-0200
CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
Employers whose pension plans meet the requirements of Internal Revenue Code section 401(a) are permitted a deduction for their contributions to these plans under Code section 404.
To have a plan qualified under section 401(a), the employer must submit an application to the IRS as required by section 1.401-1(b)(2) of the Income Tax Regulations. Form 5307 was developed as an application for use by adopters of master or prototype, regional prototype or volume submitter plans.
2. USE OF DATA
The form provides the IRS with the information necessary to determine that the plan meets all the requirements of the applicable sections of the Internal Revenue Code §§ 401, 404 and 501.
3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
We have no plans at this time to offer electronic filing because of the low volume compared to the cost of electronic enabling.
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 is no burden on small businesses or entities by this collection due to the inapplicability of the authorizing statute to this type of entity.
CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES
Consequences of less frequent collection on federal programs or policy activities would result in the Service unable to determine the correct amount of deduction a taxpayer is permitted to claim under section 404, thereby engendering the inability of the IRS to meet its mission.
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 tax forms. During these meetings, there is an opportunity for those attending to make comments regarding Form 5307.
In response to the Federal Register notice dated April 07, 2017, (82 FR 17091), we received no comments during the comment period regarding Form 5307.
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
A privacy impact assessment (PIA) has been conducted for information collected under this request as part of the “Employee Plans Master File (EPMF)” and Privacy Act System of Records notices (SORN) has been issued for these systems under Treasury/IRS 24.046-Customer Account Data Engine Business Master File; IRS 34.037–IRS Audit Trail and Security Records System; and Treasury/IRS 50.222-Tax Exempt/Government entities case Management Records. The Internal Revenue Service PIAs 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.
12. ESTIMATED BURDEN OF INFORMATION COLLECTION
The burden estimate is as follows:
Authority |
Description |
Number of Respondents |
Number Responses per Respondent |
Annual Responses |
Average Hours per Response |
Total Burden |
1.401-1 |
Form 5307 |
100,000 |
1 |
100,000 |
51.39 hrs. |
5,139,000 |
13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
There are no start-up costs and costs of operation, maintenance, and purchase of services associated with this collection.
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, distributing, and overhead for Form 5307 is $167,212.
REASONS FOR CHANGE IN BURDEN
There is no change to the 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.
REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS
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 | 2017-06-09 |
| File Created | 2017-06-09 |