Supporting Statement

OMB SUPPORTING STATEMENT

Internal revenue service

IRS Taxpayer burden surveys

TIRNO-10-Q-00152

The Supporting Statement for OMB 1545-2212

Update

IRS Taxpayer Burden Surveys and Related Taxpayer Behavior Studies

Data Collections Covered Under This Clearance Request

Individual Taxpayers

2019 Individual Taxpayer Burden Survey (Data collection 6/1/2020-5/31/2021)

2019 Individual Taxpayer Compliance (Post-Filing) Burden Survey (Data collection 3/1/2020 – 5/31/2021)

2020 Individual Taxpayer Special Study (Data collection (3/1/2020 – 9/30/2020)

2020 individual Taxpayer Special Survey (Data collection 10/1/2020 – 12/31/2020)

2020 Individual Taxpayer Burden Survey (Data collection 6/1/2021-5/31/2022)

2021 Individual Taxpayer Burden Survey (Data collection 5/1/2022-6/30/2023)

2021 Nonfiler/Late-filer Burden Survey (Data collection 2/1/2022 – 12/31/2022)

Entity Taxpayers

2019 Business Compliance (Post-Filing) Burden Survey (Data collection 3/1/2020 – 12/31/2020)

2019 Business Taxpayer Burden Survey (Data collection 6/1/2020 – 12/31/2021)

2021 Business Entity Special Survey (Data collection 3/31/2022 – 5/31/2023)

2021 Tax-Exempt Organization Special Survey (Data collection 5/31/2022 – 5/31/2023)

Other

2019 Employment Tax Burden Survey (Data Collection 5/15/2020 – 12/31/2020)

2019 Information Return Burden Survey (Data Collection 10/15/2020 – 03/31/21)

2020 Trust and Estate Income Tax Burden Survey (Data collection 6/1/2021-5/31/2022)

2020 Estate Tax Burden Survey (Data collection 10/1/2021-5/31/2022)

2020 Gift Tax Burden Survey (Data collection 10/1/2021-5/31/2021)

2021 Pension Plan Burden Survey (Data collection 12/1/2021-5/31/2022)

2021 Excise Tax Burden Survey (Data collection 2/1/2022-12/31/2022)

2021 Other Taxpayer Segment Special Survey (Data collection 3/31/2022 – 5/31/2023)

*Note: Surveys that are under development will be uploaded as non-substantive change requests, when completed/available.

1. Justification

1. Circumstances Making the Collection of Information Necessary.

The IRS Taxpayer Burden Surveys are designed to gather statistically representative data that allow the IRS to provide Congress and the President with accurate estimates of taxpayer compliance burden. These surveys also help the IRS understand how and why taxpayer burden changes over time. An ongoing survey effort is necessary to inform the IRS of the impact of ever-changing tax law that leads to regularly-issued and updated IRS regulations as well as improvements and changes in tax-filing technology. This information is not available in IRS administrative data and cannot be directly observed.

Unlike the more common customer satisfaction surveys, the success of the IRS Taxpayer Burden Surveys depends significantly on to the ability to crosswalk current results back to previous surveys. By doing so, the IRS has developed the Taxpayer Burden Model that can be used to assist the IRS and policymakers in determining the sources of changes to taxpayer burden.

Changes in tax regulations, tax administration, tax preparation methods, and taxpayer behavior continue to alter the amount and distribution of taxpayer burden. We intend to conduct updated surveys to better reflect current tax rules and regulations, increased usage of tax preparation software, increased efficiency of such software, changes in tax preparation regulations, increased use of electronic filing, the behavioral response of taxpayers to the tax system, changing use of services (both IRS and external), and related information collection needs. These data will be used as inputs to create, update, and validate econometric models that allow the IRS to estimate compliance burden for the entire population and serve as a baseline for future surveys of this population.

The IRS has conducted prior surveys of individual taxpayers in 1984 (OMB 1545-0802), 1999 (OMB 1545-1688), 2000 (W&I taxpayers OMB 1545-1688, Self-employed taxpayers (OMB 1545-1740), 2007 (OMB 1545-1349. Surveys have been conducted under this OMB number since 2011. The Individual Taxpayer Burden Survey is conducted annually. Entity and other surveys are conducted on a three-year cycle. Special studies are conducted on an as-needed basis.

2. Purpose and Use of the Information Collection.

The purpose of these surveys is to gather data that will be used to update and expand the IRS Taxpayer Burden Model, a robust predictive model based on an improved burden estimation methodology. Information gathered by the surveys is not available in the administrative tax return data, so survey data are a critical input to the model. The survey data are not viewed discretely. Rather, because the data are used as inputs to the Taxpayer Burden Model (discussed below), they provide an end-to-end, taxpayer facing view of compliance burden. The related behavioral studies further inform IRS’s understanding of taxpayer behavior, inform burden model design, and help IRS improve processes and identify opportunities to reduce taxpayer burden.

The information collected via the IRS Burden Surveys will be used by IRS to support or achieve several important goals:

1. Fulfill its mission to provide top quality service to taxpayers.

2. Better understand taxpayer time and out-of-pocket cost burden.

3. Improve the accuracy and comparability of the information collection budget estimates it provides under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.).

4. Provide data to be used in micro-simulation models to allow estimation of the impact of proposed legislation on taxpayer burden before the legislation is enacted.

5. Support ongoing analysis of the role of compliance costs in influencing taxpayer behavior and identifying taxpayer needs.

6. Provide information to the Executives and Operating Divisions for assessing the impact of programs on taxpayer burden.

7. Support the Operating Divisions and IRS executives in their efforts to identify and implement burden reduction initiatives.

8. Support tax analysis in the Treasury Department Offices.

9. Assist the IRS in evaluating the effectiveness and associated impact on taxpayer costs and behavior of IRS initiatives.

10. Inform IRS process improvement in support of a better taxpayer experience.

The micro-simulation models are used to develop baseline and ‘what-if” compliance cost estimates. These estimates are used to support recommendations to simplify tax forms and schedules or provide better IRS instructions to taxpayers. The models are also used to better understand the choices taxpayers make when preparing their tax returns (e.g., filing electronically, using a paid tax preparer). In addition, the models are used to provide estimates for information reporting to OMB for baseline compliance burden of proposed or recently enacted legislative or regulatory changes. The models also provide insight on the role of technological advancements in mitigating compliance burden. Technology advancements have continued to mitigate burden even as the tax law becomes more complex because the tax preparer and tax software industries continue to develop innovative ways to help taxpayers comply with new tax laws and IRS regulations. The role of these preparation methods is represented in the model.

Advancements in electronic tax administration also play a role in reducing burden. OMB’s burden reduction data calls have emphasized the relationship between technology and burden. Estimates generated by the burden model allow us to provide this information.

3. Consideration Given to Information Technology.

Data will be collected by using a mixed mode (i.e., mail and web-based) or a web-only data collection protocol. All respondents will be offered the option of completing the survey online. The web survey will be posted online using a secure web survey delivery system. The software allows participants to skip questions and complete the survey in more than one session (i.e., the respondent can leave the web survey and come back to finish it at a later time). In addition, the web survey platform allows creation of mobile-friendly surveys, which expands respondents’ web survey completion options to smart phones, tablets, and other mobile devices. Participant responses will be captured, stored, and tracked in a response database which can then be used to update and expand the relevant burden model.  

 

The mail survey will be created using intelligent data capture and image processing. The software extracts indexing information automatically from any document type through the use of multiple recognition engines. The software reads hand print, machine print, optical marks, bar codes, and signatures. This will expedite the collection of responses from the mail survey and minimize error.

 

Follow-up prompting will make use of automated software that will manage telephone calls (both pre-recorded messages and prompts delivered by live interviewers) to respondents. A tailored survey management system will track cases throughout all modes of contact, including the survey invitation, prompting reminders, and data retrieval.

 

4. Duplication of Information.

To our knowledge, there is no duplication of information. Respondents are not asked to provide information already known to the IRS. The burden surveys ask for information regarding the time and money cost that taxpayer spend preparing and submitting the relevant tax or information return and other qualitative and quantitative data not available in the IRS administrative data. Because information regarding the preparation method (use of a paid preparer, use of tax software, or self-preparation without assistance) and submission method (electronically filed or mail) are available from tax return data, the survey requires respondents to answer only the questions that are applicable to them, thus reducing respondent burden.

5. Reducing the Burden on Small Entities.

The data collections under this OMB number will impact small businesses to the extent that some selected respondents are self-employed sole proprietors, small corporations, or small partnerships. Collecting information from these small businesses will enable the IRS to better understand what processes or tax items are particularly burdensome for small business and will support IRS efforts to focus on small business burden reduction efforts related to tax administration, as well as inform policymakers who are considering legislative changes.

All respondents, including those that are self-employed small businesses, will be given the option to take the survey via the web. We anticipate that providing the option to complete the survey using a web-based survey will reduce the burden of completing the survey by allowing small businesses and other taxpayers to complete the survey at a time and place of their convenience as well as eliminating the need to return the paper survey in the postage-paid business reply envelope.

6. Consequences of Not Conducting Collection.

The IRS taxpayer burden surveys are instrumental to estimating and reporting approximately 75 percent of the total information collection budget of the federal government. This reporting is required by Congress under the Paperwork Reduction Act. Further, IRS methodology and associated estimates of the monetized value of time derived from these studies has been used by OMB in estimating the overall monetized burden of all federal government information collections. Results from the surveys also support program evaluation and policy design for IRS and other Offices of the Department of the Treasury. Periodic updates of the survey are necessary to identify changes in the impacts of different drivers of taxpayer burden, allowing us to adjust the model and associated estimates appropriately over time. Special studies allow IRS to gather information about taxpayer compliance burden when a survey is not the appropriate means of data collection. Failing to collect these data covered under this OMB number would limit the Government’s ability to provide accurate current estimates of taxpayer compliance burden costs.

Support of OMB Initiatives. A major program evaluation question for the Department of the Treasury specifically, and OMB generally, is estimating the extent to which Federal agency partnerships with third parties in the area of Electronic Tax Administration have generated productivity gains which in turn lower burden. A cross-sectional analysis can inform estimation of the impact of more taxpayers using technology-assisted methods but cannot speak to the extent to which such methods have become more productive over time as a result of government and third-party investments. Qualitative evidence discussed in the FY2010 Information Collection Budget pointed to the likely existence of significant burden reductions over the past decade from Treasury Department technology investments and industry partnerships. Such an analysis critically depends on time-series data as the point of the analysis is to estimate how productivity of a given information collection method changes over time. The surveys inform this research by extending the time-series data, which allows more substantive comparison to earlier data collections. These data will be used to update, validate, and expand the IRS Taxpayer Burden Model.

Compliance burden reduction research. The IRS seeks to better understand taxpayer needs and how unmet needs affect tax preparation and filing behavior. A better understanding of compliance burden is foundational to this research because the costlier it is to submit information properly, the less likely it is to be submitted properly. Improperly submitted information is a major driver of IRS administrative costs and associated taxpayer post-filing burden. Better understanding this relationship informs both prioritization of information collection and identification of communications, services, and technology to lower the cost of a given information collection. The taxpayer burden surveys are a key component of this research plan.

Integrated reporting of taxpayer burden across taxpayer segments. The Taxpayer Burden Model is currently being used to provide burden estimates for individual taxpayers, business entities, tax-exempt organizations, and employers. The IRS is developing econometric models that will cover all tax-related OMB forms, and is working with Treasury and OMB to transition all taxpayer compliance burden estimates to the new IRS burden model methodology by 2022. Integrated reporting across taxpayer segments ensures consistent estimates and avoids duplication of reported burden. To maintain the burden models and ensure that they reflect current taxpayer burden in light of tax law and IRS administrative changes, individual taxpayer burden surveys must be conducted every year and other surveys must be done at least every three years.

7. Special Circumstances.

There are no special circumstances. The collection of information is conducted in a manner consistent with the guidelines in 5 CFR 1320.6.

8. Consultations with Persons Outside the Agency.

Although the program is led and managed by the IRS, the IRS consults with external stakeholders and survey research experts for input related to the program at key decision points. This research program and the associated data collections have been discussed with representatives of the following groups outside of IRS:

• Department of the Treasury, Office of Tax Analysis

• The survey vendor, if applicable

• Enrolled Practitioners

• Stakeholder representatives to the IRS National Public Liaison, Information Reporting Program Advisory Committee, Internal Revenue Service Advisory Council, Reporting Agents Forum

• Academic, non-profit, and public sector tax policy-makers and researchers through the meetings of the National Tax Association and the IRS Research Conference

In response to the Federal Register notice dated November 19, 2019, (84 FR 63961), we received no comments during the comment period regarding these regulations.

9. Payment or Gift.

In the past 20 years, the survey industry has experienced a steady decline in response rates (e.g., Groves, Dillman, Eltinge, and Little, 2002; American Academy, 2013). To decrease nonresponse, incentives are often used to encourage participation. Studies have consistently shown the inclusion of an incentive increases response rates, and that prepaid incentives are more effective than incentives that are contingent upon completion of the survey (e.g., Church, 1993; Petriola and Bhattacharjee, 2009; Dillman, 2009). Shettle and Mooney (1999) concluded that incentives in government surveys provide a “decided cost advantage” in improving response rates, without negatively impacting non-response bias, data quality, or respondent good will.

While studies have shown that marginal returns diminish as the incentive amount increases (James and Bolstein 1990; Shaw et. al. 2001; Teisl et. al. 2009), there is still no agreement on an “optimal” incentive amount. In fact, a study by Trussell and Lavrakas (2004) suggests that the optimal amount is variable and dependent upon an individual’s previous interactions with the organization sponsoring the survey.

Given the unique relationship that individuals have with the IRS, the previously-approved 2010 Individual Taxpayer Burden Survey protocol included an extensive experiment involving whether a small $2 incentive included with the first contact could improve the response rate. Based on the 2010 ITB final survey data, respondents who received the $2 incentive had an overall higher response rate than those who did not.

Treatment	%Complete
Web First/With Incentive	42.78%
Web First/No Incentive	36.57%
Mail First/With Incentive	45.99%
Mail First/No Incentive	39.49%

For the 2011 ITB, all respondents received a $2 incentive with the survey mailing (mail-first). The response rate for this survey was 47.31%, similar to the equivalent Mail First/With Incentive treatment group in the 2010 ITB survey.

A second incentive test was included in the 2015 ITB survey protocol. Results for this survey show that the response rate for respondents who received the incentive was almost 7 percent higher than for those who didn’t receive an incentive. Based on the findings for the 2010 and 2015 ITB surveys, each respondent in the ITB surveys will receive a $2 incentive with the first survey packet mailing. No incentive will be offered for nonresponse conversion.

There are no studies that suggest that an incentive would improve the response rate for the other burden surveys. Thus, an incentive will only be offered in the Individual Taxpayer Burden Survey.

10. Confidentiality.

Confidentiality is not promised to respondents, but they they are reminded that participation is voluntary and that the information collected will be used for research purposes only.

11. Questions of a Sensitive Nature.

The survey itself does not include questions that would commonly be considered private or sensitive in nature.

12. Burden of Information Collection.

Each respondent will receive a prenote on IRS letterhead that explains the purpose of the survey and asks them to respond. The one-page letter is expected to take about one minute to read. Each potential respondent will participate only once. The potential response rate, which varies depending on the type of survey, is indicated in the burden estimate charts below.

Estimated time to complete the surveys is based on results from prior cognitive interviews. For this purpose, we estimate that it will take approximately the same time to complete the mail and web versions of the questionnaire.

The total annual burden hour estimate for the covered surveys and special studies is as follows:

	Estimated Paperwork Collection Hours
Fiscal Year	2020	2021	2022	2023
Total Hours	37,861	29,058	32,825	9,915

The estimated burden for each survey is itemized below:

TY2019 Individual Taxpayer Burden Survey (Data Collection 6/1/2020 - 5/31/2021)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2020	FY2021	FY2022
Reading prenote & reminder letters	40,000	1	.08	3,200	2,160	1,040	--
Survey Completion	20,000	1	.33	6,600	5,610	990	--
Total				9,800	7,770	2,030	--

CY2019 Individual Taxpayer Compliance (Post-Filing) Burden Survey (Data Collection 3/1/2020 – 5/31/2021)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2020	FY2021	FY2022
Reading prenote & reminder letters	30,000	1	.08	2,400	2,400	--	--
Survey Completion	15,000	1	.33	4,950	3,960	990	--
Total				7,350	6,360	990	--

TY2020 Individual Taxpayer Special Study (Data Collection 3/1/2020 – 9/30/2020)

			Average Time (Hr)	Burden Hours
Activity	Number of Respondents	Frequency of Response		Total	FY2020
Reading invitation letter & reminder letters	2,500	1	.02	50	50
Answering screener questions	150	1	.10	15	15
Participating in the focus group	72	1	1.5	108	108
Participating in in-depth phone interview	24	1	1.5	36	36
Total				209	209

TY2020 Individual Taxpayer Special Burden Survey (Data 5/1/2020 - 9/30/2020)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2020	FY2021	FY2022
Reading prenote & reminder letters	20,000	1	.08	1,600	1,600	--	--
Survey Completion	10,000	1	.33	3,300	3,300	--	--
Total				4,900	4,900	--	--

CY2019 Business Compliance (Post-filing) Burden Survey (Data Collection 6/1/2020 – 12/31/2020)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2020	FY2021	FY2022
Reading prenote & reminder letters	35,000	1	.08	2,800	2,800	--	--
Survey Completion	17,500	1	.33	5,775	5,197	578	--
Total				8,575	7,997	578	--

TY2019 Business Taxpayer Burden Survey (Data Collection 6/1/2020 – 12/31/2021)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2020	FY2021	FY2022
Reading prenote & reminder letters	35,000	1	.08	2,800	800	1,600	400
Survey Completion	17,500	1	.33	5,775	1,650	3,300	825
Total				8,575	2,450	4,900	1,225

TY2019 Employment Tax Burden Survey (Data Collection 6/1/2020 – 12/31/2020)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2020	FY2021	FY2022
Reading prenote & reminder letters	15,000	1	.08	1,200	1,200	--	--
Survey Completion	7,500	1	.33	2,475	2,275	200	--
Total				3,675	3,475	200	--

TY2019 Information Return Burden Survey (Data Collection 10/1/2020 – 12/31/2020)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2020	FY2021	FY2022
Reading prenote & reminder letters	20,000	1	.08	1,600	1,600	--	--
Survey Completion	10,000	1	.33	3,300	3,100	200	--
Total				4,900	4,700	200	--

TY2020 Individual Taxpayer Burden Survey (Data Collection 6/1/2021 – 5/31/2022)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2021	FY2022	FY2023
Reading prenote & reminder letters	40,000	1	.08	3,200	2,160	1,040	--
Survey Completion	20,000	1	.33	6,600	5,610	990	--
Total				9,800	7,770	2,030	--

TY2020 Trust and Estate Income Tax Burden Survey (Data Collection 6/1/2021 – 5/31/2022)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2021	FY2022	FY2023
Reading prenote & reminder letters	20,000	1	.08	1,600	1,600	--	--
Survey Completion	10,000	1	.33	3,300	2,475	825	--
Total				4,900	4,075	825	--

TY2020 Estate Tax Burden Survey (Data Collection 10/1/2021 – 5/31/2022)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2021	FY2022	FY2023
Reading prenote & reminder letters	20,000	1	.08	1,600	1,600	--	--
Survey Completion	10,000	1	.33	3,300	2,475	825	--
Total				4,900	4,075	825	--

TY2020 Gift Tax Burden Survey (Data Collection 10/1/2021 – 5/13/2022)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2021	FY2022	FY2023
Reading prenote & reminder letters	20,000	1	.08	1,600	1,600	---	--
Survey Completion	10,000	1	.33	3,300	2,640	660	--
Total				4,900	4,240	660	--

TY2021 Individual Taxpayer Burden Survey (Data Collection 5/1/2022 – 5/31/2023)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2022	FY2023	FY2024
Reading prenote & reminder letters	40,000	1	.08	3,200	2,160	1,040	--
Survey Completion	20,000	1	.33	6,600	5,610	990	--
Total				9,800	7,770	2,030	--

TY2021 Nonfiler/Late-filer Burden Survey (Data Collection 2/1/2022 – 12/31/2022)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2022	FY2023	FY2024
Reading prenote & reminder letters	20,000	1	.08	1,600	1,600	--	--
Survey Completion	10,000	1	.33	3,300	2,970	330	--
Total				4,900	4,570	330	--

TY2021 Pension Plan Burden Survey (Data Collection 12/1/2021 – 5/31/2022)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2022	FY2023	FY2024
Reading prenote & reminder letters	20,000	1	.08	1,600	1,600	---	--
Survey Completion	10,000	1	.33	3,300	2,640	660	--
Total				4,900	4,240	660	--

TY2021 Business Entity Special Survey (Data Collection 3/31/2022 – 5/31/2023)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2022	FY2023	FY2024
Reading prenote & reminder letters	20,000	1	.08	1,600	800	800	--
Survey Completion	10,000	1	.33	3,300	1,650	1,650	--
Total				4,900	2,450	2,450	--

TY2021 Tax-Exempt Organization Burden Survey (Data Collection 9/1/2022 – 9/30/2023)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2022	FY2023	FY2024
Reading prenote & reminder letters	20,000	1	.08	1,600	800	800	--
Survey Completion	10,000	1	.25	2,500	250	2,250	--
Total				4,100	1,050	3,050	--

CY2021 Excise Tax Burden Survey (Data Collection 2/1/2022 – 12/31/2022)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2022	FY2023	FY2024
Reading prenote & reminder letters	20,000	1	.08	1,600	1,600	--	--
Survey Completion	10,000	1	.33	3,300	2,640	660	--
Total				4,900	4240	660	--

TY2021 Other Taxpayer Segment Special Survey (Data Collection 3/31/2022 – 5/31/2023)

Activity	Number of Respondents	Frequency of Response	Average Time (Hrs)	Burden Hours
				Total	FY2022	FY2023	FY2024
Reading prenote & reminder letters	15,000	1	.08	1,200	960	240	--
Survey Completion	7,500	1	.33	2,475	1,980	495	--
Total				3,675	2,940	735	--

Summary of Burden and Cost for all Surveys
	Number of Responses	Burden Hours					Monetized Burden Cost ($24.98/hour)
Survey		Total	FY2020	FY2021	FY2022	FY2023
TY2019 Individual Taxpayer Burden Survey	20,000	9,800	7,770	2,030	-	-	$244,804
CY2019 Individual Taxpayer Compliance (Post-Filing) Burden Survey	15,000	7,350	6,360	990	-	-	$183,603
TY2020 Individual Taxpayer Special Study	246	209	209	-	-	-	$5,221
TY2020 Individual Taxpayer Special Burden Survey	10,000	4,900	4,900	-	-	-	$122,402
CY2019 Business Compliance (Post-filing) Burden Survey	17,500	8,575	7,997	578	-	-	$214,204
TY2019 Business Taxpayer Burden Survey	17,500	8,575	2,450	4,900	1,225	-	$214,204
TY2019 Employment Tax Burden Survey	7,500	3,675	3,475	200	-	-	$91,802
TY2019 Information Return Burden Survey	10,000	4,900	4,700	200	-	-	$122,402
TY2020 Individual Taxpayer Burden Survey	20,000	9,800	-	7,770	2,030	-	$244,804
TY2020 Trust and Estate Income Tax Burden Survey	10,000	4,900	-	4,075	825	-	$122,402
TY2020 Estate Tax Burden Survey	10,000	4,900	-	4,075	825	-	$122,402
TY2020 Gift Tax Burden Survey	10,000	4,900	-	4,240	660	-	$122,402
TY2021 Individual Taxpayer Burden Survey	20,000	9,800	-	-	7,770	2,030	$244,804
TY2021 Nonfiler/Late-filer Burden Survey	10,000	4,900	-	-	4,570	330	$122,402
TY2021 Pension Plan Burden Survey	10,000	4,900	-	-	4,240	660	$122,402
Survey	Number of Responses	Burden Hours					Monetized Burden Cost ($24.98/hour)
		Total	FY2020	FY2021	FY2022	FY2023
TY2021 Business Entity Special Survey	10,000	4,900	-	-	2,450	2,450	$122,402
TY2021 Tax-Exempt Organization Burden Survey	10,000	4,100	-	-	1,050	3,050	$102,418
CY2021 Excise Tax Burden Survey	10,000	4,900	-	-	4,240	660	$122,402
TY2021 Other Taxpayer Segment Special Survey	7,500	3,675	-	-	2,940	735	$91,802
Total	225,246	109,659	37,861	29,058	32,825	9,915	$2,739,282

The annual monetized burden cost to respondents is estimated to total $945,767.78 (37,861 hours x $24.98) for 2020, $725,868.84 (29,058 hours x $24.98) for 2021, $819,968.50 (32,825 hours x $24.98) for 2022, and $247,676.70 (9,915 hours x $24.98) for 2023. This estimate is derived using $24.98, the May 2018 average wage rate from the Bureau of Labor and Statistics Occupational Employment Statistics Survey. (The 2019 average wage rate was not available at the time this request was submitted.)

13. Annual Cost to Respondents.

There are no capital/start-up or ongoing operation/maintenance costs associated with collection of taxpayer burden information.

14. Cost to the Federal Government.

The estimated annualized cost to the Federal government for administering these surveys is estimated to be:

2019 Burden Surveys $1,425,000

• Employee labor and materials (for developing the surveys, including developing, printing, storing forms, developing computer systems, screens, or reports to support the collection, travel costs, labor and materials for collecting the information, analyzing, evaluating, summarizing, and/or reporting on the collected information): $200,000

• Cost of contractor services: $1,250,000

2020 Taxpayer Burden Surveys $1,200,000

• Employee labor and materials (for developing the surveys, including developing, printing, storing forms, developing computer systems, screens, or reports to support the collection, travel costs, labor and materials for collecting the information, analyzing, evaluating, summarizing, and/or reporting on the collected information): $200,000

• Cost of contractor services: $1,000,000

2021 Taxpayer Burden Surveys $1,250,000

• Employee labor and materials (for developing the surveys, including developing, printing, storing forms, developing computer systems, screens, or reports to support the collection, travel costs, labor and materials for collecting the information, analyzing, evaluating, summarizing, and/or reporting on the collected information): $250,000

• Cost of contractor services: $1,000,000

14. Reason for Change.

The survey scope is expanded to include burden for surveys associated with all taxpayer segments. This effort represents a continuation of the IRS’s strategy to gather taxpayer burden data for all types of tax returns and information reporting documents in order to support Wage and Investment’s OMB Improvement Strategy to transition burden estimates for all taxpayers to the preferred RAAS burden estimation methodology. These surveys will allow RAAS to update and validate the IRS Taxpayer Burden Model which will be used to provide estimates for consolidated taxpayer segments, similar to what is currently done for OMB numbers 1545-0074, 1545-0123, and 1545-0047.

14. Tabulation of Results, Schedule, Analysis Plans.

Upon conclusion of data collection for each survey, IRS staff will use the results to develop updated estimates of compliance burden for the relevant taxpayer segments. Detailed results from the survey will be used to update the estimated relationships between taxpayer burden and taxpayer filing attributes. These estimates will then be used to update the micro-simulation model that provides taxpayer burden estimates and other tax-related information.

14. Display of OMB Approval Date.

The IRS will comply with requirements to display the expiration date for OMB approval of the information collection on all instruments under this OMB number.

14. Exceptions to Certification for Paperwork Reduction Act Submission.

Not applicable. No exceptions are believed to exist.