Employee Retention Credit for Employers Affected by Qualified Disasters

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
Form 5884-A Employee Retention Credit for Employers Affected by Qualfied Disasters	Form	Modified	Available
Form 5884-A Employee Retention Credit for Employers Affected by Qualified Disaster	Form	Modified	Repair queued
2021 SS 1545-1978.docx	Supporting Statement A	Uploaded 2021-09-27	Repair queued

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
19719	Employee Retention Credit for Employers Affected by Qualified Disaster	Form	Modified	Employee Retention Credit for Employers Affected by Qualfied Disasters
19719	Employee Retention Credit for Employers Affected by Qualified Disaster	Form	Modified
19719	Employee Retention Credit for Employers Affected by Qualified Disaster	Instruction	Modified

ICR Details

OMB Control No: 1545-1978	ICR Reference No: 202105-1545-004
Status: Historical Active	Previous ICR Reference No: 201801-1545-011
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Employee Retention Credit for Employers Affected by Qualified Disasters
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 12/10/2021
Retrieve Notice of Action (NOA)	Date Received in OIRA: 09/28/2021
Terms of Clearance: OMB understands that the IRS is currently in the process of revising the methodology it uses to estimate burden and costs. OMB expects that future ICRs under this OMB control number will include dollar estimates of annual burden costs to taxpayers calculated using this revised methodology.

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	12/31/2024	36 Months From Approved	12/31/2021
Responses	250,000	0	250,000
Time Burden (Hours)	637,500	0	760,000
Cost Burden (Dollars)	0	0	0

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Abstract: Form 5884-A is used to figure certain credits for disaster area employers. These credits typically include employee retention credits for eligible employers who conducted an active trade or business in certain disaster areas. The credit is equal to 40 percent of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). P. L. 116-260, Div. EE, sec. 303.

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Authorizing Statute(s): PL: Pub.L. 116 - 260 303 Name of Law: Employee Retention Credit for Employers Affected by qualified disasters
   PL: Pub.L. 116 - 260 301 Name of Law: Definitions
  

Citations for New Statutory Requirements: PL: Pub.L. 115 - 63 503 Name of Law: Credits for Affected Disaster Area Employers
PL: Pub.L. 116 - 260 301 & 303 Name of Law: Employee Retention Credit for Employers Affected by

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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
60-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 17886	04/06/2021
30-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 53730	09/28/2021
Did the Agency receive public comments on this ICR? No

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

table that charts list of burden

IC Title	Form No.	Form Name
Employee Retention Credit for Employers Affected by Qualified Disaster	5884-A	Employee Retention Credit for Employers Affected by Qualfied Disasters

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ICR Summary of Burden

table that charts list of burden

	Total Approved	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	250,000	250,000	0	0	0	0
Annual Time Burden (Hours)	637,500	760,000	-122,500	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: Changes in burden estimates previously approved by OMB, resulted from a program change due to new statute P.L. 116-260, Div. EE, Sec. 301 & 303. Lines 1a through 1e that were previously used to claim credits for wages paid in 2017 were removed. Line 1f was changed to line 1a and added a new line 1b for the new credit and line 1g became line 1c. Because we are kept text from previous line 1f, filers of an original (late) or amended 2018 return could use either the new revision or the previous revision. The instructions will suggest using this new revision for tax years beginning after 2017. Tax Forms and Publications updated the separate Instructions for Form 5884-A to reflect the new credit; they contain a complete list of the 2020 qualified disaster zones along with the applicable period for each disaster. The changes to the form decrease the burden hours from 760,000 to 637,500 with an overall decrease of (122,500) burden hours.

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Annual Cost to Federal Government: $19,593

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.     Yes

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: 09/28/2021

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