Employee Retention Credit for Certain Tax-Exempt Organizations Affected by Qualified Disasters (Form 5884-D)

Forms and Documents

Document Name	Status
Form 5884-D Form 5884-D Form and Instruction	New
1545-NEW Emergency Justification (Form 5884-D)_Signed.pdf Supplementary Document	2021-03-16
1545-NEW Supporting Statement F5844-D.docx Supporting Statement A	2021-03-16

IC Document Collections

IC ID	Document Title	Status
246266	Form 5884-D Form and Instruction	New

ICR Details

OMB Control No:	ICR Reference No: 202103-1545-011
Status: Received in OIRA	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Employee Retention Credit for Certain Tax-Exempt Organizations Affected by Qualified Disasters (Form 5884-D)
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 03/22/2021
Date Submitted to OIRA: 03/16/2021

	Requested	Previously Approved
Expiration Date	6 Months From Approved
Responses	516,266	0
Time Burden (Hours)	1,151,273	0
Cost Burden (Dollars)	0	0

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Abstract: Internal Revenue Code (IRC), Section 303(d) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 allows for a new payroll tax credit for certain tax-exempt organization affected by certain qualified disasters. Form 5884-D- Employer Retention Credit for Certain Tax-Exempt Organizations Affected by Qualified Disasters, will be used by a qualified tax-exempt organization (including certain governmental entities) to figure and claim a credit against certain payroll taxes. A qualified tax-exempt organization (including certain governmental entities) that continued to pay or incur wages after activities of the organization became inoperable because of damage from a qualified disaster may be able to claim the 2020 qualified disaster employee retention credit against certain payroll taxes. The credit is equal to: • 40% of up to $6,000 of qualified wages paid to or incurred for each eligible employee, and • The credit is claimed against the employer portion of social security tax on wages paid to all employees during an employment tax period. A list of qualified disasters are available in the instructions.

Emergency Justfication: The Department of the Treasury and the Internal Revenue Service (IRS) are requesting approval of a new OMB Control Number under emergency procedures in connection with provisions of Public Law 116-260, Div. EE, Section 303(d) (December 27, 2020), commonly referred to as the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (TCDTRA). Section 303(d) of the TCDTRA allows for a new payroll tax credit for certain tax-exempt organization affected by certain qualified disasters. Form 5884-D, Employer Retention Credit for Certain Tax-Exempt Organizations Affected by Qualified Disasters (Under Section 3111(a)), is used by a qualified tax-exempt organization (including certain governmental entities) to figure and claim a credit against certain payroll taxes. A qualified tax-exempt organization (including certain governmental entities) that continued to pay or incur wages after activities of the organization became inoperable because of damage from a qualified disaster may be able to use Form 5884-D to claim the 2020 qualified disaster employee retention credit against certain payroll taxes. The use of an employee retention credit for disaster zones would provide a tax credit of 40% of wages (up to $6,000 per employee) to employers in disaster zones. The credit would apply to wages paid without regard to whether services associated with those wages were performed. In light of the short timeline to provide guidance regarding the Waiver of the 60-day Rollover Requirement, the IRS plans to release the Form 5884-D on March 22, 2021, and thus requests approval of the control number by that date.

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Authorizing Statute(s): PL: Pub.L. 116 - 260 Div. EE, 303(d) Name of Law: Taxpayer Certainty and Disaster Tax Relief Act of 2020 (TCDTRA)
  

Citations for New Statutory Requirements: PL: Pub.L. 116 - 260 Div. EE, 303(d) Name of Law: Taxpayer Certainty and Disaster Tax Relief Act of 2020 (TCDTRA)

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Form 5884-D	5884-D	Employee Retention Credit for Certain Tax-Exempt Organizations Affected by Qualified Disasters

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ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	516,266	0	516,266	0	0	0
Annual Time Burden (Hours)	1,151,273	0	1,151,273	0	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: This is a submission for a new form, due to a new statute.

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Annual Cost to Federal Government: $8,000

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 03/16/2021

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