Large Business Burden Model

Large Business Burden Survey.pdf

U. S. Business Income Tax Return

Large Business Burden Model

OMB: 1545-0123

⚠️ Notice: This form may be outdated. More recent filings and information on OMB 1545-0123 can be found here:

Document [pdf]

Download: pdf | pdf

pl
e

nl
y

Business Taxpayer Burden Survey

Your experience matters to us.

BTB

Frequently Asked Questions
What is the purpose of this survey?

nl
y

The purpose of this survey is to measure what it costs business taxpayers to comply with federal tax
rules and regulations. For most establishments, these costs are a combination of time spent and outof-pocket expenses. Please be assured that you will not be asked about the income or other financial
details of your business’ tax return.

This questionnaire relates to the activities associated with federal income tax compliance activities during
the most recent tax year as well as the preparation and filing of your 2012 federal income tax return. It
does NOT include any other tax returns (i.e., employment, excise, information returns, state and local,
etc.) filed for the same period. This includes any filings completed in the 12 months leading up to the
filing of your business’s 2012 federal income tax return.

Who should complete this survey?

The individual most responsible for maintaining the financial records for your business or making the
financial and tax-related decisions for your business should complete this questionnaire. You may
need to consult with others in your organization to complete the survey and we encourage you to do
so. This survey concerns the time and costs spent by your business, not the time and costs spent by
your external service provider if you had one. Please do not forward this survey to your external service
provider.

Why was my business selected for this survey?

pl
e

Your business was randomly selected from the millions of businesses that filed a federal tax return in
2012. If you own more than one business, please look at the address label of this mailing to see which
business was randomly selected to receive this survey.

How will my answers be used?

Please be assured that your responses will be used for research and aggregate reporting purposes
only and will not be used for other non-statistical or non-research purposes such as direct enforcement
activities.

Why should I participate?

While participation is voluntary, information about your business’s tax preparation experience will help
the IRS reduce taxpayer burden. We encourage you to take a few minutes of your time to participate. By
doing so, you will make sure that businesses like yours are represented.

How long will this survey take?

Public reporting burden for this collection of information is estimated to average 15 to 20 minutes per
response, including the time for reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the collection of information.

Who can I contact with questions?

If you have questions about the content of this survey please call Sarah Bennett at Westat by phone at
1-888-450-8610 or send an email to [email protected]. If you would like to speak to someone at
IRS, please call Keith Fowler at the IRS at 513-518-4905 or send him an email at [email protected].

Draft

TAX PREPARATION METHODS AND ACTIVITIES

nl
y

This part of the survey collects general information about your business. Please answer all
questions with reference to the most recent tax return year. The most recent tax year
includes the 12 months leading up to the filing of your business's most recent federal income
tax return.
1. Which of the following methods did your business use to prepare its most recent federal
income tax return? Include activities done by external service providers.
Did your business use…

Check all that apply.

A tax preparation service? (e.g., a CPA, a tax lawyer, an enrolled agent, a registered tax preparer)

A tax advisory service?
Accounting and/or financial software?

Tax preparation software? (e.g., CCH, InSource, CORPTAX, custom software)

Please describe:

pl
e

Any other method(s)?

Owners or employees of your business?

2. In addition to preparation of your business's federal income tax return, for which of the
following activities did your business engage an external service provider during the
most recent tax year?

Check all that apply.

Accounting or bookkeeping
Estimated income tax payments

Tax advisory services
Pre-tax fringe benefits (e.g., pension plan, health care benefits)
Individual income tax preparation for owners or partners of your business
Did you engage an external service provider for any other activities?

Please describe:

Form

14296 (Rev. 4-2013)

Catalog Number 58104B

www.irs.gov

Department of the Treasury - Internal Revenue Service

Draft

Tax Department Personnel and Budget

nl
y

As mentioned in the FAQs, the purpose of this survey is to measure what it costs business
taxpayers to comply with federal tax rules and regulations. For most establishments, these
costs are a combination of time spent and out-of-pocket expenses (e.g., fees paid to
external service providers, software costs). In the remaining sections we will ask for
estimates of these costs.
3. Does your organization have a dedicated in-house tax department?




Please go to Question 4 below

Yes

Please skip to Question 7 on page 4

4. What was the total annual budget for the tax department in the most recent tax year?
4A. Total tax department budget.

Dollars

Cents

Don't Know

$
Dollars

Cents

Don't Know

pl
e

4B. Of the amount in 4A, how much was
spent exclusively on federal income
tax compliance?

5. Of the amount entered in question 4A, how much was allocated to costs related to
internal tax department costs and external (out-sourced) services provided to the tax
department?
5A. Internal tax department costs.

$
Dollars

Cents

Don't Know

5B. Of the amount in 5A, how much was
spent exclusively on federal income
tax compliance?

$
Dollars

Cents

Don't Know

Form

14296 (Rev. 4-2013)

Catalog Number 58104B

www.irs.gov

Department of the Treasury - Internal Revenue Service

Draft

5C. Cost of external services provided
to tax department.

$
Dollars

Cents

Don't Know

Dollars

Cents

Don't Know

nl
y

5D. Of the amount in 5C, how much was
spent exclusively on federal income
tax compliance?

Dollars

Cents

6A. Allocation to tax compliance
activities from other department(s).

6. Did any other Departments allocate part of their budget to tax compliance activities?
These departments could include but are not limited to the following: IT, Payroll,
Comptroller, Human Resources, and Subsidiaries.

Don't Know

$
Dollars

Cents

Don't Know

pl
e

6B. Of the amount in 6A, how much was
spent exclusively on federal income
tax compliance?

Form

14296 (Rev. 4-2013)

Catalog Number 58104B

www.irs.gov

Department of the Treasury - Internal Revenue Service

Draft

Time Spent on Tax-Related Activities

nl
y

As mentioned in the FAQs, the purpose of this survey is to measure what it costs business
taxpayers to comply with federal tax rules and regulations. For most establishments, these
costs are a combination of time spent and out-of-pocket expenses (e.g., fees paid to
external service providers, software costs). In the remaining sections we will ask for
estimates of these costs.
The next three questions focus on the time spent on activities related to filing your
business's federal tax return.

Think about all the time your business spent on tax-related recordkeeping, tax planning,
gathering tax-related materials, learning about tax law, using IRS or non-IRS resources,
completing, reviewing, and submitting your 2012 federal tax return, and calculating and
depositing estimated tax payments.
Please do NOT include:

Please include:

 Time spent on your federal income tax

 Time spent by your external service

return as well as any associated forms,
schedules, and worksheets that you
completed or filed

provider(s)

 Time spent on state or local income tax

returns

 Time throughout the tax year as well as
the tax filing season

 Time spent on employment tax returns
and payroll activities

 Time spent corresponding with your

pl
e

 Time spent on excise tax

external service provider(s)

 Time spent on foreign tax
 Time spent on information returns
 Time spent on individual income tax returns

for owners, partners, or shareholders

 Time spent on retirement & pension related
activities

7. How much TOTAL time did your business spend performing tax reporting compliancerelated activities for the 2012 tax year? (e.g., tax-related recordkeeping, tax planning,
gathering tax-related materials, learning about tax law, using IRS or non-IRS resources,
completing, reviewing, and submitting your business's 2012 federal income tax return,
and calculating and depositing estimated tax payments)
We encourage you to consult your records or others in your business, if necessary. If
these resources are unavailable, please provide your most accurate estimate.
Note: You may answer the question in number of hours OR full-time equivalents (FTE).
FTE = total hours / 2080 hours.

:
Hours

Form

14296 (Rev. 4-2013)

OR
Minutes

Catalog Number 58104B

.
FTE

www.irs.gov

Department of the Treasury - Internal Revenue Service

Draft

The next item asks you to allocate the hours or FTE reported in Question 7 across different
activities. For example, if you reported 1,000 hours in Question 7, then the hours you report in rows
A-G in the table below should add up to 1,000 hours.

Hours

B. Tax planning?

E. Completing and submitting
your federal income tax return?

F. Resolving IRS Exam,
Collection or Appeal issues
regarding your business's
federal income tax return?

Hours

:
:

Hours

G. All other tax-related activities?

Minutes

Hours

Minutes

FTE

FTE
OR

Minutes

FTE
OR

Minutes

FTE

OR
Minutes

FTE

Please describe:

D. Calculating and depositing
estimated income tax
payments?

pl
e

C. Gathering materials, learning
about tax law, and using IRS
or non-IRS resources?

Minutes

Hours

A. Tax recordkeeping, including
reconciling financial and tax
records?

nl
y

7A. How would you distribute the time reported in Question 7 across each of the following
tax-related activities? (Parts A-G should add up to the total number of hours or FTE reported
in Question 7.) Please note that this time is for in-house staff only, not any external service
providers.

Form

14296 (Rev. 4-2013)

Catalog Number 58104B

www.irs.gov

Department of the Treasury - Internal Revenue Service

Draft

The next item asks you to allocate the hours or FTE reported in Question 7 across the different
types of employees who did the work. For example, if you reported 1,000 hours in Question 7, then
the hours you report in rows A-D in the table below should add up to 1,000 hours.

Hours

B. In-house professionals or
managers?

Hours

Minutes

Please describe:

Minutes

FTE

pl
e

Hours

FTE

D. Other types of employees?

Minutes

C. Clerical or administrative
staff?

A. Owner(s) or executives?

nl
y

7B. How would you distribute the time reported in Question 7 across each of the different types of
employees listed below? (Parts A-D should add up to the total number of hours or FTE
reported in Question 7.) Please note that this time is for in-house staff only, not any external
service providers.

7C. What is the average hourly pay rate for all
individuals in your company responsible
for federal income tax-related activities?

$
Dollars

Cents

Don't Know

Form

14296 (Rev. 4-2013)

Catalog Number 58104B

www.irs.gov

Department of the Treasury - Internal Revenue Service

Draft

FEES ASSOCIATED WITH TAX COMPLIANCE
Please think about how much money your business spent to comply with its tax obligations.
Costs associated with tax compliance are a very important part of assessing burden, so
please provide the most accurate estimate you can.

8A. Total fee paid to external service
providers for tax and tax-related
services.

nl
y

8. How much did your business pay all external service providers for tax and tax-related
services received during the most recent tax year?

Dollars

Cents

Don't Know

8B. Of the amount in 8A, how much
was spent exclusively on federal
income tax activities such as tax
planning, recordkeeping, and
return preparation?

Dollars

Cents

Don't Know

pl
e

8C. Of the amount in 8A, how much
was spent exclusively on resolving
federal income tax return issues in
IRS Exams, Collections, or
Appeals?

Dollars

Cents

Don't Know

9. How much money, if any, did your business spend during the most recent tax year on
tax-specific software?

Note: Include any costs your business may have incurred for annual maintenance and
updates.
9A. Total money spent on all tax-specific
software.

$
Dollars

Cents

Don't Know

9B. Of the amount in 9A, how much was
spent exclusively on federal income
tax software?

$
Dollars

Cents

Don't Know

Form

14296 (Rev. 4-2013)

Catalog Number 58104B

www.irs.gov

Department of the Treasury - Internal Revenue Service

Draft

10. If applicable, how much money was spent on other business-related tax activities not
included in questions 8 and 9 above for the most recent tax year? This may include money
spent on electronic submission, photocopies, tax literature, transportation, postage, or
IRS user fees.

10A. Total money spent on all other
business-related tax activities.

nl
y

Note: Do NOT include money your business spent on external paid professional, tax
software, or employee compensation.

Dollars

10B. Of the amount in 10A, how much
was spent exclusively for your
business's most recent federal
income tax return?

Don't Know

Dollars

Cents

Don't Know

pl
e

10C. Of the amount in 10A, how much was
spent exclusively on resolving federal
income tax return issues in IRS
Exams, Collections, or Appeals?

Dollars

Cents

Don't Know

DEMOGRAPHICS

Finally, we have a couple of questions about your business.

11. On average, how many full-time and part-time employees, if any, did your business have
during the most recent tax year? Please include partners or owners, but do not include
any independent contractors. Independent contractors are workers who are not treated as
employees for employment tax purposes.
11A. How many full-time employees?

Don't Know

11B. How many part-time employees?
Don't Know

12. In how many states did your business file state income tax returns during the most
recent tax year?
Number of states
Don't Know

Form

14296 (Rev. 4-2013)

Catalog Number 58104B

www.irs.gov

Department of the Treasury - Internal Revenue Service

nl
y

If you would prefer to complete the survey on the web, you may do so by
following the instructions below. Web responses are processed more quickly
and will help ensure that you don’t receive follow-up contacts.

Go to the website.

Web Survey Instructions

To take the survey online, please go to:

2 Log in.

ou will need the following username and
Y
password to access the survey:

pl
e

www.IRSBTBSurvey12B.org

Username: [UID]
Password: [PWD]

Problems?

If you have any technical difficulties, including problems
with the website, please call 1-888-450-8610 or send an
email to [email protected].

nl
y
O
se
U
pl
e
am
rS

OMB No: 1545-2212. This report is authorized under the Paperwork Reduction Act. Data collected will be
shared with IRS staff, but your responses will be used for research and aggregate reporting purposes
only and will not be used for other non-statistical or non-research purposes such as direct
enforcement activities. The information that you provide will be protected to the fullest extent allowable
under the Freedom of Information Act (FOIA). Public reporting burden for this collection of information is
estimated to average 20 minutes, including the time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information. Send comments regarding this burden estimate or any other aspect of this collection of
information, including suggestions for reducing this burden, to IRS Tax Products Coordinating Committee,
1111 Constitution Avenue, NW, Washington, DC 20224.

12BTB_C1B

*12345678*

File Type	application/pdf
File Title	N:\TFDMPROJ\Teleform Projects\IRS BTB 2012\Development\pdf\IRS BTB 2012 - Large Business v12 (20040 - Draft, Traditional).xps
File Modified	2017-01-10
File Created	2013-05-15