Supporting Statement

.

SUPPORTING STATEMENT

OMB Number 1545-0008

(IRS Forms W-2, W-2c, W-2AS, W-2GU, W-2VI

W-3, W-3c, W-3cPR, W-3PR, W-3SS)

1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

Section 6051 of the Internal Revenue Code requires employers to furnish income and withholding statements to employees and to the IRS. Employers report income and withholding information on Form W-2. Forms W-2AS, W-2GU, and W-2VI are variations of the W-2 for use in U.S. possessions. The W-3 series forms transmit W-2 series forms to SSA for processing. The W-2c and W-3c series are used to correct previously filed forms.

2 USE OF DATA

The forms provide the employee with the information needed to prepare their income tax return, and the IRS with the information necessary to reconcile employment tax returns filed by employers.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

85% of Form W-2’s are filed on magnetic tape or electronically.

4. EFFORTS TO IDENTIFY DUPLICATION

We have attempted to eliminate duplication within the agency wherever possible.

5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES

There are no methods to minimize burden on small businesses or other small entities. The form has been structured to request the least amount of information and still satisfy the requirements of the statute and the needs of the Service.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES

Consequences of less frequent collection on federal programs or policy activities could result in inaccurate reporting of the information needed for employees to prepare their income tax return, and the IRS with the information necessary to reconcile employment tax returns filed by employers.

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).

8. 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 these forms.

In response to the Federal Register notice dated October 13, 2016, (81 F. R. 70741), we received one comment during the comment period regarding W-2, W-2C, W-2AS, W-2GU, W-2VI, W-3, W-3C, W-3CPR, W-3PR, and W-3SS. This comment letter supported the continued efforts and collection of the information on relating to this group of forms.  It provided examples of how the information is used in the national income and product accounts (NIPAs).  This letter was forwarded to the office responsible for revising these forms for any future communications.

9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO

RESPONDENTS

No payment or gift has been provided to any respondents.

10. 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 “Business Master File (BMF)” and Privacy Act System of Records notices (SORN) has been issued for these systems under Treasury/IRS 24.046– Business Master File (BMF); Treasury/IRS 24.030-Customer Account Data Engine Master File; IRS 34.037–IRS Audit Trail and Security Records System. The Internal Revenue Service PIAs can be found at https://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 reporting burden for Forms W-2/W-3 and existing regulations associated with them is as follows:

One hour will be reflected in OMB’s inventory for 1545-0008 because Form W-2 is a standard form used by other government agencies.

Forms	Numbers of Responses	Estimated Time/per/Responses	Total Annual Burden Hours
W-2	247,118,200	.50	123,559,100
W-2AS	5,414	.39	2,112
W-2c	150,297	.67	100,699
W-2GU	5,414	.41	2,220
W-2VI	2,028	.41	832
W-3	6,747,800	.47	3,171,466
W-3c	150,297	.86	129,256
W-3cPR	5150	.53	2,730
W-3PR	40,594	.45	18,268
W-3SS	5,414	.41	2,220
Totals	254,230,608	Varies	126,988,903

Related Regulations

31.6051-1 31.6081(a)-1(a)(3)

31.3402(o)-3(h)(3)(i) 31.3121(a)(2)-2e

31.3231(e)-(2)(e)(2) 1.117-6(e)

1.6011-1 31.6053-2

31.608(a)-19(a)(3) 31.3402(o)-3(h)(3)(r)

31.6041-2 31.6052-1

31.6052-2 31.9101-1

31.6051-1(a), (b), (c), (d), (f), (g) 31.6051-3(a), (b), (e)

31.6051-2(a), (b), (c) 1.117-6(d)(4)

We have reviewed these regulations and have determined that the reporting requirements contained in them are entirely reflected on the Form W-2 series. The justification appearing in item 1 of the Supporting Statement applies to these regulations and to the forms. Please continue to assign OMB Number 1545-0008 to these regulations.

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

There were no estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services provided to respondents.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT

The primary cost to the government consists of the cost of printing this form(s). We estimate that the cost of printing the form(s) is $1,649,050.

15. REASONS FOR CHANGE IN BURDEN

There is no change in the burden hour that is reflected in the OMB inventory. However, there was an increase in the number of filers that resulted in an increase in the number of responses by 1,225,487.

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.

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS

INAPPROPRIATE

See attachment.

18. 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.

OMB EXPIRATION DATE

We believe the public interest will be better served by not printing an expiration date on the form(s) in this package.

Printing the expiration date on the form will result in increased costs because of the need to replace inventories that become obsolete by passage of the expiration date each time OMB approval is renewed. Without printing the expiration date, supplies of the form could continue to be used.

The time period during which the current edition of the form(s) in this package will continue to be usable cannot be predicted. It could easily span several cycles of review and OMB clearance renewal. In addition, usage fluctuates unpredictably. This makes it necessary to maintain a substantial inventory of forms in the supply line at all times. This includes supplied owned by both the Government and the public. Reprinting of the form cannot be reliably scheduled to coincide with an OMB approval expiration date. This form may be privately printed by users at their own expense. Some businesses print complex and expensive marginally punched continuous versions, their expense, for use in their computers. The form may be printed by commercial printers and stocked for sale. In such cases, printing the expiration date on the form could result in extra costs to the users.

Not printing the expiration date on the form(s) will also avoid confusion among taxpayers who may have identical forms with different expiration dates in their possession.

For the above reasons we request authorization to omit printing the expiration date on the form(s) in this package.