2014 Focus Groups (Business Compliance Burden Survey)

Business Taxpayer Burden Survey

Your experience matters to us.

BTB

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. 

Frequently Asked Questions
What is the purpose of this survey?
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. 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?
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.

What would the IRS like to know?
This survey includes questions regarding the following areas:
 Tax Preparation Methods and Activities
 Tax-Related Recordkeeping
 Gathering Materials, Learning About Tax Law, and Using IRS Taxpayer Services
 Time Spent on Tax-related Activities
 Fees Associated with Tax Compliance
 Demographics

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 nonresearch 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 513-5184905 or send him an email at [email protected].

We hope you will take the time
to complete this important survey.
Thank you.

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TAX PREPARATION METHODS AND ACTIVITIES
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' 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., TurboTax, Tax Cut, H&R Block At Home, CCH, InSource,
CORPTAX, custom software)
Owners or employees of your business?
Any other method(s)?

Please describe:

2. In addition to preparation of your business' 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. X-XXXX)

Catalog Number XXXXXX

www.irs.gov

1

Department of the Treasury - Internal Revenue Service

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Tax Department Personnel and Budget
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?
Yes
No




Please go to Question 4 below
Please skip to Question 5

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

$
Dollars

.

Cents

Don't Know

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. X-XXXX)

Catalog Number XXXXXX

www.irs.gov

2

Department of the Treasury - Internal Revenue Service

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

$
Dollars

.

Cents

Don't Know
5D. Of the amount in 5C, how much was spent exclusively on federal income tax compliance?

$
Dollars

.

Cents

Don't Know

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

$
Dollars

.

Cents

Don't Know
6B. Of the amount in 6A, how much was spent exclusively on federal income tax compliance?

$
Dollars

.

Cents

Don't Know

Form

14296 (Rev. X-XXXX)

Catalog Number XXXXXX

www.irs.gov

3

Department of the Treasury - Internal Revenue Service

Draft

Time Spent on Tax-Related Activities
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

 Time spent on employment tax returns

the tax filing season

and payroll activities

 Time spent corresponding with your

 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. X-XXXX)

OR

Full Time Equivalent (FTE)

Minutes

Catalog Number XXXXXX

.

www.irs.gov

4

Department of the Treasury - Internal Revenue Service

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7A. How would you distribute the time reported in Question 7 across each of the
following tax-related activities? (Parts A-F 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.
A. Tax recordkeeping, including
reconciling financial and tax
records?
B. Tax planning?

D. Calculating and depositing
estimated income tax payments?
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?
G. All other tax-related activities?
Please describe:

14296 (Rev. X-XXXX)

Hours

:

Hours

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

Form

:

:

Hours

:

Hours

:

Hours

:

Hours

:

Hours

Catalog Number XXXXXX

www.irs.gov

5

Minutes

Minutes

Minutes

Minutes
Minutes

Minutes

Minutes

OR

OR

OR

OR
OR

OR

OR

.

Full Time Equivalent (FTE)

.

Full Time Equivalent (FTE)

.

Full Time Equivalent (FTE)

.

Full Time Equivalent (FTE)

.

Full Time Equivalent (FTE)

.

Full Time Equivalent (FTE)

.

Full Time Equivalent (FTE)

Department of the Treasury - Internal Revenue Service

Draft

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.

:

A. Owner(s) or executives?

Hours
B. In-house professionals or
managers?

:

Hours

:

C. Clerical or administrative staff?

Hours
D. Other types of employees?
Please describe:

:

Hours

Minutes
Minutes
Minutes
Minutes

OR
OR

OR
OR

.

Full Time Equivalent (FTE)

.

Full Time Equivalent (FTE)

.

Full Time Equivalent (FTE)

.

Full Time Equivalent (FTE)

7C. 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. X-XXXX)

Catalog Number XXXXXX

www.irs.gov

6

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

$
Dollars

.

Cents

Don't Know

8B. Of the amount in 8A, how much was spent exclusively for federal income tax
planning and return preparation?

$
Dollars

.

Cents

Don't Know

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

Form

14296 (Rev. X-XXXX)

Catalog Number XXXXXX

www.irs.gov

7

Department of the Treasury - Internal Revenue Service

Draft

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. X-XXXX)

Catalog Number XXXXXX

www.irs.gov

8

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.
Do NOT include money your business spent on external paid professional, tax software, or
employee compensation.
10A. Total money spent on all other business-related tax activities.

$
Dollars

.

Cents

Don't Know

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

$
Dollars

.

Cents

Don't Know

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

Form

14296 (Rev. X-XXXX)

Catalog Number XXXXXX

www.irs.gov

9

Department of the Treasury - Internal Revenue Service

Draft

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. X-XXXX)

Catalog Number XXXXXX

www.irs.gov

10

Department of the Treasury - Internal Revenue Service

Thank You For
Completing this
Important Survey!

12BTBW1_C1B

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