1545-0074 Supporting Statement (2021)_Change Request

SUPPORTING STATEMENT

Internal Revenue Service

U.S. Income Tax Return for Individual Taxpayers

OMB Control Number 1545-0074

1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

Sections 6011 & 6012 of the Internal Revenue Code (IRC), require individuals to prepare and file income tax returns annually. These forms and related schedules are used by individuals to report their income subject to tax and compute their correct tax liability.

Regulations section 1.6011-1explains that every person subject to any tax, or required to collect any tax, under Subtitle A of the Code, shall make such returns or statements as are required by the regulations. The return or statement shall include therein the information required by the applicable regulations or forms. Section 1.6012-1 explains the general guidelines for individuals required to make returns of income.

Copies of the prescribed return forms are so far as possible furnished to taxpayers by the IRS. A taxpayer will not be excused from making a return, however, by the fact that no return form has been furnished to him. Taxpayers not supplied with the proper forms should make application therefor to the district director in ample time to have their returns prepared, verified, and filed on or before the due date with the internal revenue office where such returns are required to be filed. Each taxpayer should carefully prepare his return and set forth fully and clearly the information required to be included therein. Returns which have not been so prepared will not be accepted as meeting the requirements of the Code. In the absence of a prescribed form, a statement made by a taxpayer disclosing his gross income and the deductions therefrom may be accepted as a tentative return, and, if filed within the prescribed time, the statement so made will relieve the taxpayer from liability for the addition to tax imposed for the delinquent filing of the return, provided that without unnecessary delay such a tentative return is supplemented by a return made on the proper form.

This information collection request (ICR), covers the actual reporting burden associated with preparing and submitting the prescribed return forms, by individuals required to file Form 1040 and any of its’ affiliated forms.

OMB clearance for the burden estimate will be requested before the relevant tax filing season but after the IRS has had the opportunity to update its models with prior year data and to make necessary revisions to draft forms (including providing drafts to public for comment), and is sought on an annual basis instead of on the regular 3-year Paperwork Reduction Act (PRA) cycle. Doing so ensures that new and updated business forms can be made available for use on a timelier basis.

Form 673 is to be filed with your U.S. employer to claim an exemption from U.S. income tax withholding on wages earned abroad to the extent of the foreign earned income exclusion and foreign housing exclusion

Form 926 is used to report certain transfers by individuals, partnerships, corporations, or estates or trusts of tangible or intangible property to a foreign corporation. The reporting is required by IRC section 6038B.

Form 965-A is used to report individual Net 965 tax liability.

Form 965-C is used by individuals to enter into a transfer agreement under section 965(h)(3).

Form 970 is used by taxpayers to elect to use the last-in, first-out (LIFO) inventory method.

Form 972 is used by Shareholders to agree to report as a taxable dividend on their own tax return a consent dividend even though they received no distribution. The corporation may then be able to claim a consent dividends deduction.

Publication 972 contains a worksheet to help taxpayers figure their child tax credit if they have three or more children; have foreign earned income; meet a specific income requirement; or claim certain adoption or mortgage tax credit.

Form 982 is used for a discharge of indebtedness that is excluded from the income under section 108(a).

Form 1040 and related schedules are used by individuals to report their income subject to tax and compute their correct tax liability.

Form 1040 (SP) is the Spanish translated version of Form 1040.

Form 1040 (Schedule A) is used to report item deductions.

Form 1040 (Schedule B) is used to report interest and/or ordinary dividend income.

Form 1040 (Schedules C) are used to report income or loss from a business operated or profession practiced as a sole proprietor or to report wages and expenses as a statutory employee

Form 1040 (Schedule D) is report sales or exchanges or certain involuntary conversions of capital assets, certain capital gain distributions, and nonbusiness bad debts

Form 1040 (Schedule E) is used to report income from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in real estate mortgage investment conduits (REMICs).

Form 1040 (Schedule EIC) is used to claim the earned income credit use Schedule EIC to give IRS information about the qualifying child.

Form 1040 Schedule EIC (SP) is the Spanish translated version of Form 1040 (Schedule EIC).

Form 1040 (Schedule F) is used to report gross income, expenses, and net profit or loss from farming.

Form 1040 (Schedule H) is used by household employers to report household employment taxes.

Form 1040 (Schedule J) is used by taxpayers with farm income to figure their tax using income averaging.

Form 1040 (Schedule LEP) is by individuals to elect to receive certain types of written correspondence from the IRS in a Limited English Proficiency (LEP) format.

Form 1040 Schedule LEP (SP) is the Spanish translated version of Form 1040 (Schedule LEP).

Form 1040 (Schedule R) is used to help verify that the taxpayer is entitled to the credit for the elderly or the disabled.

Form 1040 (Schedule SE) is used by self-employed individuals to figure the self-employment tax due on their net earnings.

Form 1040 (Schedule 1) is used by Form 1040 filers who have income or adjustments not listed on the Form 1040.

Form 1040 Schedule 1 (SP) is the Spanish version used by Form 1040 (SP) filers who have income or adjustments not listed on the Form 1040.

Form 1040 (Schedule 2) is used by Form 1040 filers who have income or adjustments to income not listed on the Form 1040 (SP) and generally include tax items.

Form 1040 Schedule 2 (SP) is the Spanish version used by Form 1040 (SP) filers who have income or adjustments not listed on the Form 1040 (SP).

Form 1040 (Schedule 3) is used by Form 1040 filers who have additional nonrefundable credits not entered on the Form 1040.

Form 1040 Schedule 3 (SP) is the Spanish version used by Form 1040 (SP) filers who have income or adjustments not listed on the Form 1040 (SP).

Form 1040 (Schedule 8812) is used to figure the additional child tax credit.

Form 1040 Schedule 8812 (SP) is the Spanish translated version of Form 1040 (Schedule 8812).

Form 1040-C is used by departing aliens who intend to depart from the U.S., for purposes of reporting income received or expected to be received for the entire taxable year, determined as nearly as may be, up to and including the date of intended departure.

Form 1040-ES is used by individuals with income not subject to tax withholding to figure and pay estimated tax.

Form 1040-ES (NR) is used by nonresident aliens to figure estimated tax on income not subject to tax withholding.

Form 1040-ES (OCR) is a voucher used by taxpayers making an estimated tax payment with their return.

Form 1040-ES (PR) is used by individuals in Puerto Rico to figure self-employment tax.

Form 1040 NR is used by all nonresident alien individuals whether or not engaged in trade or business within the United States; required for filing nonresident alien fiduciary (estates and trusts) returns.

Form 1040 NR (Schedule A) is used by Form 1040NR filers who have income or adjustments not reported directly on the Form 1040NR.

Form 1040 NR (Schedule NEC) is used by Form 1040NR filers who have income or adjustments not effectively connected with a U.S. Trade or Business.

Form 1040 NR (Schedule OI) is used by Form 1040NR filers who have additional nonrefundable credits not entered income or adjustments not effectively connected with a U.S. Trade or Business.

Form 1040-SR is used by individuals to report their income subject to tax and compute their correct tax liability who are 65 or older.

Form 1040-SR (SP) is the Spanish translated version of Form 1040-SR.

Form 1040-V is used by taxpayers making a payment with their return.

Form 1040-V (OCR-ES) is used only if you have a balance due on the “Amount you owe” line of your individual tax return.

Form 1040X is used by individual taxpayers to amend prior year tax returns.

Form 1045 is used by taxpayers (other than corporations) who have a net operating loss carryback and desire a quick refund of taxes.

Form 1098-F is used by taxpayers who have paid fines in relation to any violation of a law or investigation into potential violation of a law, pursuant to a court order or agreement.

Form 1116 is used to support the foreign tax credit claimed for the amount of any income, war profits, and excess profits tax paid or accrued during the taxable year to any foreign country or U.S. possession.

Form 1127 is used by taxpayers to request extension of time to pay taxes.

Form 1128 is used by taxpayers to request a change in tax year. Used by partnerships, S corporations, or personal service corporations to adopt or retain a certain tax year.

Form 1310 is used by a surviving spouse or a personal representative to claim a refund on behalf of a deceased taxpayer.

Form 2106 is used to support deductions from income tax for travel, transportation, outside salesman or educational expenses (except moving expenses).

Form 2120 is for persons claiming a dependent under the multiple support rules and to identify all other eligible persons and to indicate they have signed statements from them waiving their rights to claim that person as a dependent.

Form 2210 is filed as an explanation to avoid penalty for underpayment of estimated tax.

Form 2210-F is used by persons whose gross income from farming or fishing is at least two-thirds of their gross annual income and to see if they owe a penalty for underpaying their estimated tax.

Form 2350 is used by U.S. citizens and resident aliens abroad, to ask for an extension of time to file their tax returns if they need the time to meet the bona fide residence or physical presence test to qualify for special tax treatment.

Form 2350 (SP) is the Spanish translated form 2350.

Form 2441 is used to figure the amount of your credit from paying someone to care for a child or other qualifying person so that the taxpayer (and spouse if filing a joint return) could work or look for work. The taxpayer (and spouse if filing a joint return) must have had earned income to do so.

Form 2555 is filed by taxpayers who have earned income from sources outside the U.S. which is exempt from U.S. Income Tax.

Form 2848 is used to authorize an individual to represent you before the IRS. The individual you authorize must be a person eligible to practice before the IRS.

Form 2848 (SP) is the Spanish translated version of Form 2848.

Form 3115 is used to request a change in either an overall accounting method or the accounting treatment of any item.

Form 3468 is used by individuals, estates, trusts, and corporations to claim investment credit.

Form 3520 is used by U.S. persons to report certain transactions with foreign trusts, and receipt of certain large gifts of bequests from certain foreign persons.

Form 3800 is used to claim any of the general business credits.

Form 3903 is used to report moving expenses that can be deducted on Form 1040 for a move related to the start of a new job.

Form 4070 is not filed with IRS but is used by employees to report tips monthly to their employer.

Form 4070A is not filed with IRS but is used by employees to keep a record of daily tips.

Form 4136 is used by taxpayers (other than partnerships who are not electing large partnerships) to claim a credit for certain nontaxable uses or sales of fuel during the tax year.

Form 4137 is used by employees who did not report tips to their employers, including any allocated tips shown in box 8 of their Form(s) W-2, to figure the social security and Medicare tax owed on those tips.

Form 4255 is used by taxpayers who dispose of (or whose property ceases to be) investment credit property before the end of the useful life used in computing the investment credit, and to figure the increase in tax for the recapture of investment credit claimed.

Form 4361 is used by ministers, members of religious orders who have not taken a vow of poverty, and Christian Science practitioners to claim exemption from tax on self-employment income.

Form 4562 is used by Taxpayers to claim a deduction for depreciation or amortization, to make the section 179 election to expense certain property, and to provide information on the business/investment use of cars and other listed property.

From 4563 is used by bona fide residents of American Samoa for the entire tax year to figure the amount of income they may exclude from gross income.

Form 4684 is for optional use by individual as a guide for reporting gains and losses resulting from casualties and thefts.

Form 4797 is used to report the details of gains and losses from the sale, exchange, involuntary conversion (from other than casualty or theft loss), or disposition of the following: property used in your trade or business, depreciable or amortizable property, capital and non-capital (other than inventory) assets held in connection with the trade or business, or capital asses not reported on Schedule D.

Form 4835 is used by land owner (or sublessor) to report gross farm rental income based on crops or livestock shares where the taxpayer does not materially participate in the operation or management of the farm.

Form 4852 is used by taxpayers to estimate wages and income taxes withheld when Form W-2 is not available from employer.

Form 4868 is used by individuals to apply for six (6) more months to file their individual tax return.

Form 4868 (SP) is the Spanish translated version of Form 4868.

Form 4952 is used by individuals, estates, and trusts to figure the amount of investment interest expense (interest paid on loans allocable to investment property) they can deduct and the amount they can carry forward to future years.

Form 4970 is used by beneficiaries who receive an accumulation distribution from certain domestic trusts to figure the partial tax on the distribution.

Form 4972 is used in averaging lump-sum distributions to determine whether the income tax computed under the averaging provisions is the most advantageous.

Form 5074 is used by U.S. citizens and residents with adjusted gross income of $50,000 or more that includes at least $5,000 from Guam or CNMI sources to provide information to the US. This allows IRS to figure the individual income tax due to Guam or the CNMI.

Form 5213 is used by individuals, trusts, estates, and S corporations to elect to postpone an IRS determination as to whether the presumption applies that an activity is engaged in for profit.

Form 5329 is used by any individual who has established a retirement account, annuity or retirement bond.

Form 5405 is used to claim the first-time homebuyer credit.

Form 5471 is used by certain U.S. citizens or residents who are officers, directors, or shareholders in certain foreign corporations to report required information.

Form 5471 (Schedule E) is used by filers to report income, war profits, and excess profit taxes paid or accrued.

Form 5471 (Schedule H) is used by filers to report the foreign corporations current earnings and profits for U.S. tax purposes.

Form 5471 (Schedule I-1) is used to report information determined at the CFC level with respect to amounts used in the determination of income inclusions by U.S. shareholders.

Form 5471 (Schedule J) is used by filers to report accumulated earnings and profits, in functional currency, computed under sections 964(a) and 986(b).

Form 5471 (Schedule M) is used by U.S. persons who had control of a foreign corporation for an uninterrupted period of at least 30 days to report certain transactions that occurred during the corporation's annual accounting period.

Form 5471 (Schedule O) is used by certain officers, directors, and shareholders of foreign corporations to report (re)organization and acquisition/disposition of its stock.

Form 5471 (Schedule P) is used to report the PTEP of the U.S. shareholder of a CFC in the CFC’s functional currency.

Form 5695 is used to figure and take your residential energy efficient property credit, including any credit carryforward from 2007.

Form 5713 is used by persons that may be required to report having operations in or related to countries which require participation in or cooperation with an international boycott.

Form 5713 (Schedule A) is used by persons who participated in or cooperated with an international boycott to figure the international boycott factor to use in figuring the loss of tax benefits.

Form 5713 (Schedule B) is used by persons who participated in or cooperated with an international boycott to specifically attribute taxes and income in order to figure the loss of tax benefits.

Form 5713 (Schedule C) is used by filers to compute the loss of tax benefits from participation in or cooperation with an international boycott.

Form 5884 is used to claim the work opportunity credit for qualified first year wages paid or incurred for targeted-group employees during the tax year.

Form 5884-A is used to claim the employee retention credit.

Form 6198 is used by individuals, estates, trusts, and certain corporations to figure the profit (loss) from an at-risk activity, the amount at risk, and the deductible amount of the loss.

Form 6251 is used to figure alternative minimum tax for individuals.

Form 6252 is used to report income from the sale of real property or the casual sale of personal property other than inventory, if you are not a dealer. At least one payment (including payments from sales reported on the installment method prior to 1980) will be received in a tax year of the sale.

Form 6478 is used by persons who sell or use alcohol as a fuel to figure their credit for alcohol used as fuel.

Form 6765 is used by individuals, estates, trusts, organizations, or corporations to figure and claim the credit for increasing research activities. Since 2003, the instructions are now included with the form.

Form 6781 is used by taxpayers to report gains and losses on section 1256 contracts under the mark-to-market rules and under section 1092 from straddle positions.

Form 7202 used to claim refundable credit on Form 1040 or Form 1040-SR for sick leave and for family leave for certain self-employed individuals related to the Coronavirus (COVID-19).

Form 8082 is used by partners, S corporation shareholder, beneficiary of an estate or trust, owner of a foreign trust, or residual interest holder in a real estate mortgage investment conduit (REMIC), to notify IRS of inconsistencies between the tax treatment of an item on their returns vs. the way the pass-through entity treated and reported the item on its return.

Form 8275-R is used by taxpayers and preparers to disclose positions taken on a tax return that are contrary to Treasury regulations, to avoid certain portions of the accuracy-related penalty, if the return position has a reasonable basis.

Form 8275 is used by taxpayers and preparers to disclose items or positions, except those taken contrary to a regulation, that are not otherwise adequately disclosed on a tax return to avoid certain penalties.

Form 8283 is used to claim a deduction for a charitable contribution of property or similar items of property, the claimed value of which exceeds $500.

Form 8302 is used to request an electronic funds transfer of an income tax refund of $1 million or more to the taxpayers’ bank account for a taxpayer filing Form 1045, 1139 or a tax return other than Form 1040, 1120, 1120-A 0r 1120-S.

Form 8332 is used by custodial parents to release their claim to their child's exemption. They give the form to the non-custodial parent who will claim the child's exemption, and that parent attaches it to his or her income tax return.

Form 8379 is used by injured spouses to compute their share of a joint tax refund when all or part of the refund was applied against their spouse's past-due Federal tax or non-tax debt, such as child or spousal support, or state income tax, etc.

Form 8396 is used to figure mortgage interest credit and any carryover there may be to a subsequent year.

Form 8453 is completed by taxpayers who file their individual tax return electronically using a third party.

Form 8453 (SP) is the Spanish translated version of Form 8453.

Form 8582-CR is used by individuals, estates, and trusts with certain credits from passive activities to figure the amount of any passive activity credit allowed for the current tax year.

Form 8582 is used by individuals, estates, and trusts with losses from passive activities to figure the amount of any passive activity loss allowed for the current tax year.

Form 8586 is used by owners of qualified residential rental buildings in low-income housing projects to figure the amount of their low-income housing credit, a component of the general business credit.

Form 8594 is used by the buyers and sellers of a group of assets that make up a business when goodwill or going concern value attaches.

Form 8606 is used by taxpayers to report nondeductible contributions to their traditional IRA(s), distributions from certain IRAs where their basis was more than zero, distributions from Roth IRAs, and amounts converted.

Form 8609 (Schedule A) pursuant to section 42 (I), must be completed by the building owner each year of the 15-year compliance period, whether or nor a credit is claimed for the tax year.

Form 8611 is used by owners of residential low-income rental buildings to recapture the low-income housing credit taken in previous years due to a decrease in the qualified basis of a building or its disposition without posting a satisfactory bond.

Form 8615 is used by children under age 14 with investment income of more than $1,500 (indexed for inflation), who are required to file a tax return, and whose tax rate is lower than their parents' tax rate to figure their tax.

Form 8621A is used by shareholders of a former Passive Foreign Investment Company (PFIC) or a Section 1297(e)PFIC to make a late purging election under Section 1298(b)(1) to terminate their subjection to taxation under Section 1291.

Form 8621 is used by direct or indirect shareholder of a passive foreign investment company or qualified electing fund who is a U.S. person for each tax year in which the shareholder holds stock in a passive foreign investment company or qualified electing fund.

Form 8689 is used to figure the amount of U.S. tax allocable to the U.S. Virgin Islands. If you were a citizen or resident alien of the United States and had income from sources in the U.S. Virgin Islands or income effectively connected with the conduct of a trade or business in the U.S. Virgin Islands, you may owe tax to the U.S. Virgin Islands. The tax liability is a percentage of your U.S. tax liability.

Form 8697 is used by persons who complete long-term contracts that were accounted for using the percentage of completion or completion-capitalized cost methods to figure the interest due or to be refunded under the look-back method.

Form 8801 is used by Individuals, trusts, and estates to figure the minimum tax credit for alternative minimum tax and any minimum tax credit carryforward.

Form 8814 is used by parents to report the income of their children.

Form 8815 is used by individuals who cashed certain savings bonds to pay qualified higher education expenses to exclude part or all of the interest on the bonds.

Form 8818 is used by individuals who cashed certain savings bonds and paid qualified higher education expenses to keep a record of the bonds. Form 8818 is not filed with IRS; the information is used to complete Form 8815.

Form 8820 is used by individuals, estates, trusts, organizations, and corporations that elect to claim an orphan drug credit to claim it.

Form 8821 authorizes any individual, corporation, firm, organization, or partnership you designate to inspect and/or receive your confidential information in any office of the IRS for the type of tax and the years or periods you list on Form 8821.

Form 8822 is used by taxpayers to notify the IRS of changes in home or business mailing addresses or business location.

Form 8824 is used by taxpayers to report each exchange of business or investment property for property of a like kind.

Form 8826 is used by eligible small businesses to claim the disabled access credit, a part of the general business credit.

Form 8828 is used by homeowners with federal mortgage subsidies to figure and report the recapture tax on the subsidy if they sold or otherwise disposed of the home.

Form 8829 is used by filers of Schedule C (Form 1040) to figure the allowable expenses for business use of their home and any carryover to the following year of amounts not deductible in the current year.

Form 8833 is used by taxpayers, including dual-resident taxpayers, to make the treaty-based return position disclosure. A separate form is required for each treaty-based return position taken.

Form 8834 is used by taxpayers to figure the credit for qualified electric vehicles placed in service during the tax year.

Form 8835 is used by taxpayers to claim the renewable electricity production credit (for the sale of electricity produced in the U.S. or U.S. possessions from qualified energy resources at a qualified facility).

Form 8838 is used by U.S. transferors that entered into a gain recognition agreement under section 367(a) and 367(e)(2) with their income tax return for the tax year the transfer is made.

Form 8839 is used by individuals to figure the amount of their adoption credit and any employer-provided adoption benefits they can exclude from income.

Form 8840 is used by Alien individuals to claim the closer connection to a foreign country(ies) exception to the substantial presence test. The exception is described in Regulations section 301.7701(b)-2.

Form 8843 is used by Alien individuals to explain the basis of their claim that they can exclude days of presence in the United States for purposes of the substantial presence test.

Form 8844 is used by Employers to claim the empowerment zone and renewal community employment credit.

Form 8845 is used by Employers of American Indians who are qualified employees to claim the Indian employment credit.

Form 8846 is used by certain food and beverage establishments to claim a credit for social security and Medicare taxes paid or incurred by the employer on certain employees' tips. This is part of the general business credit.

Form 8847 is used to claim the credit for qualified contributions made to select Community Development Corporations (CDCs).

Form 8853 is used by individuals to report contributions to and figure deductions for Archer MSAs, to report distributions from MSAs, to report payments from long-term care insurance contracts, and to report accelerated death benefits from life insurance policies.

Form 8854 is used if you expatriate, to provide information required by sec. 6039G.

Form 8858 is used by certain U.S. persons that own a foreign disregarded entity (FDE) directly or, in certain circumstances, indirectly or constructively.

Form 8858 (Schedule M) is used by certain U.S. persons that are required to file Form 5471 with respect to a CFC or Form 8865 with respect to a CFP, that is a tax owner of an FDE, such as Category 4 filers of Form 5471, and Category 1 filers of Form 8865, must file Schedule M.

Form 8859 is used by individuals to claim the District of Columbia first-time homebuyer credit.

Form 8862 is used by individuals if both of the following apply: Your EIC was reduced or disallowed for any reason other than a math or clerical error for a year after 1996; and you now want to claim the EIC and you meet all of the requirements.

Form 8863 is used by individuals to figure and claim education credits (i.e., the Hope credit and the lifetime learning credit).

Form 8864 is used by taxpayers to claim the biodiesel (including agri-biodiesel) credit and the biodiesel mixture credit.

Form 8865 is used to report the information required under section 6038, section 6038B, or section 6046A.

Form 8865 (Schedules G, H, K-1, O, and P) is used to report the information required under section 6038, section 6038B, or section 6046A.

Form 8866 is used by taxpayers who depreciated certain property using the income forecast method (generally limited to motion picture films, video tapes, sound recordings, copyrights, books and patents) to figure the interest due or to be refunded under the look-back method.

Form 8867 is used by paid tax preparers to ensure due diligence is being exercised.

Form 8873 is used to figure the amount of extraterritorial income excluded from gross income for the tax year.

Form 8874 is used to claim the new markets credit for qualified equity investments made in qualified community development entities (CDEs). This credit is part of the general business credit.

Form 8878 is used to certify the truthfulness, correctness and completeness of the form; selected a personal identification number (PIN) as his or her signature for the electronic application and, if applicable, electronic funds withdrawal consent, and to authorize the electronic return originator (ERO) to enter the taxpayers self-selected PIN on the electronic application for an extension of time to file and if applicable electronic funds withdrawal consent.

Form 8878 (SP) is the Spanish translated version of Form 8878.

Form 8879 is used by taxpayers when their return is e-filed using the practitioner PIN method or when the taxpayer authorizes the electronic return originator to enter the taxpayer's PIN on his or her e-filed return.

Form 8879 (SP) is the Spanish translated version of Form 8879.

Form 8880 is used by individuals to figure the amount, if any, of their retirement savings contributions credit. This credit can be claimed in addition to any IRA deduction.

Form 8881 is used by eligible small employers to claim the credit for qualified startup costs incurred in establishing or administering an eligible employer plan.

Form 8882 is used by employers to claim the credit for qualified childcare facility and resource and referral expenditures. It is part of the general business credit.

Form 8885 is used by eligible recipients to figure the amount, if any, of their health coverage tax credit. Eligible recipients include recipients of trade adjustment assistance (TAA), alternative TAA, and Pension Benefit Guaranty Corporation pensions.

Form 8886 is used to disclose participation in reportable transactions by taxpayers as described in regulations 1.6011-4.

Form 8888 is used by taxpayers to request that IRS deposit their tax refund into their account at a financial institution instead of receiving a check.

Form 8889 is used to report activity in a health savings account.

Form 8891 must be used by certain taxpayers who hold interests in Canadian registered retirement savings plans or registered retirement income funds.

Form 8896 is used by eligible small refiners to claim the credit for qualified low sulfur diesel fuel production costs.

Form 8898 is used by individuals who begin or End Bona Fide Residence in a U.S. Possession.

Form 8900 is used by eligible taxpayers to claim the railroad track maintenance credit (RTMC) with respect to qualified railroad track maintenance expenditures (QRTME) paid or incurred during the tax year.

Form 8903 is used by corporations, individuals, partners to calculate and report the domestic production activities deduction.

Form 8906 is used to claim the distilled spirits credit, which is part of the general business credit.

Form 8908 is used to claim a credit for each qualified energy efficient home sold or leased to another person during the tax year for use as a residence.

Form 8910 is used to determine the amount of alternate motor vehicle credit that can be claimed.

Form 8911 is used to figure your credit for alternative fuel vehicle refueling property you placed in service during the tax year.

Form 8912 is used to claim the credit for holding tax credit bonds.

Form 8915-A, 8915-B, 8915-C, 8915-D, and 8915-E are used by eligible individuals impacted by designated disaster areas that received a distribution out of their retirement plan which may qualify for favorable tax treatment.

Form 8917 is used to figure and take the deduction for tuition and fee expenses paid during the tax year.

Form 8919 is by individuals to calculate their share of the social security and Medicare tax on the income that has been determined to be wages.

Form 8925 is required to be attached to the employer's income tax return to report all employer-owned life insurance contracts.

Form 8932 is used to claim the credit for eligible differential wage payments.

Form 8933 is used to claim the carbon dioxide sequestration credit.

Form 8936 is used to figure the credit for qualified plug-in electric drive motor vehicles placed in service during the tax year.

Form 8949 is used with Schedule D (Form 1040) to report and summarize capital gains and losses.

Form 8958 is used to determine the allocation of tax amounts between married filing separate spouses, California same-sex spouses, or registered domestic partners (RDPs) with community property rights.

Form 8959 is used to report the additional Medicare tax for high-income earners.

Form 8962 is used to report the Premium Tax Credit.

Form 8965 is used to report exemption from the minimum essential health care coverage requirement.

Form 9465 is used to request a monthly installment plan if they cannot pay the full amount of tax they owe.

Form 9465 (SP) is the Spanish translated version of Form 9465.

Form W-4 is used by employees to give it to their employer, so their employer withholds the correct Federal income tax from their pay.

Form W-4 (SP) is the Spanish translated version of Form W-4.

Form W-4 P is used by recipients of annuity, pension, or certain other deferred compensation payments to tell payers the correct amount of federal income tax to withhold.

Form W-4 S is used request Federal income tax withholding from an individual’s sick pay payments. Give

Form W-4V is used by recipients of certain government payments to request voluntary Federal income tax withholding from their payments.

Form W-7 is used by Alien individuals who are required to furnish a U.S. taxpayer identification number to the IRS but who do not have, and are not eligible to obtain, an SSN.

Form W-7 SP is the Spanish translated version of Form W-7.

Form W-7 A is used by Alien individuals who are required to furnish a U.S. taxpayer identification number to the IRS but who do not have, and are not eligible to obtain, an SSN.

Form W-7 (COA) is to be used as the Certificate of Accuracy, required for all ITIN Certifying Acceptance Agents when submitting Form W-7.

Form 9465 is used to request a monthly installment plan if they cannot pay the full amount of tax they owe.

Form 9465 (SP) is the Spanish translated version of Form 9465.

Form T (Timber), Forest Activities Schedule, is used to provide information on timber accounts when a sale or deemed sale under sections 631(a), 631(b), or other exchange has occurred during the tax year.

Publication 972 is used to claim the Child Tax Credit and Credit for Other Dependents.

2. USE OF DATA

The data on Form 1040 and its schedules will be used in computing the tax liability and in determining that the items claimed are properly allowable. It is also used for general statistical use.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

We are currently offering electronic filing for these forms and schedules. In addition to the existing forms and schedules, the IRS is offering electronic processing for economic stimulus payment and advanced tax credits. The Non-Filer Sign-Up tool gives taxpayers, not required to file a tax return an opportunity to sign up for the stimulus payments. At no cost, taxpayers can use this tool to provide basic information to enroll and receive payments. Additionally, the IRS gives taxpayers that have filed either their 2019 or 2020 tax return the ability to check their enrollment status, unenroll and stop payments, and updated bank account information.

4. EFFORTS TO IDENTIFY DUPLICATION

The information obtained through this collection is unique and is not already available for use or adaptation from another source.

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

The IRS proactively works with both internal and external stakeholders to minimize the burden on small businesses, while maintaining tax compliance. The Agency also seeks input regarding the burden estimates from the public via notices and tax product instructions. This information collection is for individual taxpayers; therefore, there will be minimal if any impact to small businesses. The forms can be filed electronically, which further reduces any burden to small businesses.

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

Consequences of less frequent collection on federal programs or policy activities could consist of a decrease in the amount of taxes collected by the Service, inaccurate and untimely filing of tax returns, and an increase in tax violations.

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

In response to the Federal register notice dated October 30, 2020 (85 FR 68956), we received two comments during the comment period regarding the burden associated with this collection of information. The first comment letter related to the filing requirements of Form 1040-NR and its relationship to foreign trusts and estates. The comment letter recommended that such taxpayers “…be permitted to file their returns on Form 1041…”. The second comment letter provided support for “…the continued collection of data by the Internal Revenue Service (IRS) for Form 1040 and its related schedules.”

From: Lee Zimet, Senior Director, Alvarez & Marsal Tax and, LLC

Response: We do not believe nonresident alien trusts and estates should be permitted to use Form 1041 as their income tax return.  Because Form 1041 is for domestic trusts and estates, it does not provide enough of the elements needed for the IRS to properly process the income tax return of a nonresident alien trust or estate. 

• The most major difference is that Form 1041 taxes worldwide income.  Form 1040-NR only taxes income with a U.S. source or which is treated as having a U.S. source, as the United States does not tax foreign trusts and estates on their worldwide income.  Interests in foreign entities, for example, required to be entered on Form 1041, Other Information, lines 3 and 4, generally aren’t relevant to foreign trusts and estates filing Form 1040-NR.

• While Form 1040-NR consists of a main form (similar in some ways to Form 1041), for income effectively connected with a U.S. trade or business we need additional information from nonresident alien trusts and estates filing a U.S. income tax return.  This is why Form 1040-NR has two related schedules that are not like anything related to Form 1041.

  • On Schedule NEC (Form 1040-NR), nonresident aliens enter U.S. source income not effectively connected with a U.S. trade or business. Amounts on Schedule NEC are generally taxed at a flat 30% rate and may, under treaty, be taxed at a lesser rate.  As a general rule, the income on Schedule NEC can’t be reduced by exclusions, deductions, or credits available on the main form for income effectively connected with a U.S. trade or business. 

  • On Schedule OI (Form 1040-NR), the country of the filer and other information is entered.  The country and the type of income that a foreign trust or estate enters on Schedule OI will determine the tax rate on their Schedule NEC income and whether they are eligible to for certain tax benefits on the main Form 1040-NR.  Form 1041 does not provide a place for entering, or taking into account, this information.

• There are lines on Form 1041 that are not applicable to foreign trusts and estates: for example, Schedule G, line 5, for the net investment income tax from Form 8960; Schedule G, line 15, for the 2020 net 965 tax liability; Other Information, lines 11a, 11b, and 12, for the section 965(i) election; and Other Information, line 10, referencing specified domestic entities.   The 965 rules do not apply to nonresident aliens and nonresident aliens would not be specified domestic entities. 

From: Dennis Fixler, Chief Economist, Bureau of Economic Analysis

Response: Thank you for your continued support for Form 1040 and its related schedules.

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 “Individual Master File (IMF)” system and a Privacy Act System of Records notice (SORN) has been issued for this system under IRS 24.030--Customer Account Data Engine Individual Master File, formerly Individual Master File, and IRS 34.037--IRS Audit Trail and Security Records System.  The Internal Revenue Service PIAs can be found at http://www.treasury.gov/privacy/PIAs/Pages/default.aspx.

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

PRA Approval of Forms Used by Individual Taxpayers

Under the PRA, OMB assigns a control number to each ''collection of information'' that it reviews and approves for use by an agency. The PRA also requires agencies to estimate the burden for each collection of information. Burden estimates for each control number are displayed in (1) PRA notices that accompany collections of information, (2) Federal Register notices such as this one, and (3) OMB's database of approved information collections.

Taxpayer Burden Model

The IRS uses the Individual Taxpayer Burden Model (ITBM) to estimate the burden experienced by individual taxpayers when complying with Federal tax laws. The model was developed using a survey of tax year 2018 individual taxpayers that was fielded in 2019 and 2020. The approach to measuring burden focuses on the characteristics and activities undertaken by individual taxpayers in meeting their tax return filing obligations.

Burden is defined as the time and out-of-pocket costs incurred by taxpayers in complying with the Federal tax system. Out-of-pocket costs include any expenses incurred by taxpayers to prepare and submit their tax returns. Examples include tax return preparation fees, the purchase price of tax preparation software, submission fees, photocopying costs, postage, and phone calls (if not toll-free).

The methodology distinguishes among preparation method, taxpayer activities, taxpayer type, filing method, and income level. Indicators of tax law and administrative complexity, as reflected in the tax forms and instructions, are incorporated into the model.

Preparation methods reflected in the model are as follows:

• Self-prepared without software,

• Self-prepared with software, and

• Use of a paid preparer or tax professional.

Types of taxpayer activities reflected in the model are as follows:

• Recordkeeping,

• Tax planning,

• Gathering tax materials,

• Use of services (IRS and other),

• Form completion, and

• Form submission.

Taxpayer Burden Estimates

Summary level results from fiscal year 2021 using this methodology are presented below. The data shown were the best forward-looking estimates available for income tax returns filed for tax year 2020.

The burden estimates were based on statutory requirements as of October 1, 2020 for taxpayers filing a 2020 Form 1040 tax return. Time spent and out-of-pocket costs are presented separately. Time burden is broken out by taxpayer activity, with record keeping representing the largest component. Out-of-pocket costs include any expenses incurred by taxpayers to prepare and submit their tax returns. Examples include tax return preparation and submission fees, postage and photocopying costs, and tax preparation software costs.

Reported time and cost burdens are national averages and do not necessarily reflect a “typical” case. Most taxpayers experience lower than average burden, with taxpayer burden varying considerably by taxpayer type. For instance, the estimated average time burden for all taxpayers filing a Form 1040 is 12 hours, with an average cost of $230 per return. This average includes all associated forms and schedules, across all preparation methods and taxpayer activities.

There is significant variation in taxpayer activity across different taxpayer groups. For example, non-business taxpayers are expected to have an average burden of about 8 hours and $140, while business taxpayers are expected to have an average burden of about 21 hours and $430. Similarly, tax preparation fees and other out-of-pocket costs vary extensively depending on the tax situation of the taxpayer, the type of software or professional preparer used, and the geographic location.

Table 1 shows the preliminary burden estimates for individual taxpayers filing 2020 Form 1040, Form 1040NR, Form 1040NR–EZ, Form 1040X, 1040–SR tax return.

*The projected number of tax filers was derived based on trends in the number of filers per Publication 6292.

Estimates for the 1040/SR/NR/NR-EZ/X series of returns and supporting forms and schedules
FY2021
	FY20	Program Change due to Adjustment In Agency Estimates	Program Change due to New Legislation	Program Change due to Agency Discretion	FY21
Number of Taxpayers	182,050,000	(17,550,000)	-	-	164,500,000
Burden in Hours	1,721,229,167	273,920,833	-	(150,000)	1,995,000,000
Burden in Dollars	33,267,000,000	4,695,000,000	-	(4,000,000)	37,960,000,000
Monetized Total Burden	74,997,000,000	(3,054,000,000)	-	-	71,943,000,000
Detail may not add to total due to rounding. Source RAAS:KDA (10-28-2020)

Estimated Average Taxpayer Burden for Individuals Filing a 1040 by Activity
Primary Form Filed or Type of Taxpayer			Time Burden								Money Burden
	Percentage of Returns		Average Time Burden (Hours)***								Average Cost (Dollars)	Total Monetized Burden (Dollars)
			Total Time	Record Keeping		Tax Planning	Form Completion and Submission		All Other
All Taxpayers	100%		12	5		2	4		1		$230	$440
Type of Taxpayer
Nonbusiness**	70%		8	3		1	3		1		$140	$270
Business**	30%		21	11		3	5		2		$440	$840
Note: This table does not include 1040NR, 1040NR-EZ, and 1040X filers. Detail may not add to total due to rounding. Dollars rounded to the nearest $10. ** A ‘‘business’’ filer files one or more of the following with Form 1040: Schedule C, C–EZ, E, F, Form 2106, or 2106–EZ. A ‘‘non-business’’ filer does not file any of these schedules or forms with Form 1040. *** Times are rounded to nearest hour.

Tables 1A – 3A show the average burden estimate for individual entities by total positive income. Total positive income is defined as the sum of all positive income amounts reported on the return.

Table 1A-All Filers
Total Positive Income Quintiles	Average Time	Average Out-of-Pocket Costs	Average Total Monetized Burden
0 to 20	7.0	$75	$130
20 to 40	10.5	$125	$215
40 to 60	11.0	$160	$290
60 to 80	12.5	$220	$420
80 to 100	19.5	$580	$1,135

Table 2A-Wage and Investment Filers
Total Income Decile	Average Time	Average Out-of-Pocket Costs	Average Total Monetized Burden
0 to 20	6.5	$65	$115
20 to 40	8.5	$110	$190
40 to 60	8.5	$135	$245
60 to 80	8.5	$180	$340
80 to 100	10.0	$310	$615

Table 3A-Self Employed Filers
Total Income Decile	Average Time	Average Out-of-Pocket Costs	Average Total Monetized Burden
0 to 20	11.5	$120	$210
20 to 40	17.5	$180	$325
40 to 60	19.5	$230	$430
60 to 80	20.5	$300	$585
80 to 100	27.0	$790	$1,540

Source RAAS:KDA (10-28-2020)

Note: The data shown are the best estimates for individual income tax returns. Reported time and cost burdens are national averages and do not reflect a “typical” case. Most taxpayers experience lower than average burden varying considerably by taxpayer type. The estimates are subject to change as new forms and data become available.

We are asking for continued approval of these regulations that are associated with Form 1040. Please continue to assign OMB number 1545-0074 to these regulations.

1.23-5	1.307-2	1.1385-1
1.31.2	1.333-1	1.1402(a)-2,5,11,15
1.37-2 and 3	1.351-3	161.1402(c)-2
1.41-4	1.383-1	1.1402(e)-(2)-1
1.41-4A	1.442-1	1.1402(f)-1
1.43-2	1.446-1	1.6001-1
1.44A-3	1.451-5 thru 7	1.6060-1
1.6072-1	1.52-4	1.454-1
1.61-15	1.461-1	1.6107-1
1.63-1	1.466-1	1.6109-1 and 2
1.64(c)6	1.551-4	1.6011-1
1.71-1	1.612-4	1.6012-1
1.72	1.642(c)-5 and 6	1.6013-1, 6, 7
1.79-2 and 3	1.702-1	1.6017-1
1.83-2 thru 5	1.706-1	1.6060-1
1.105	1.736-1	1.6072-1
1.151-1	1.743-1	1.6107-1
1.152-4 and 4T	1.751-1	1.6109-1
1.162-24	1.852-7 and 9	1.6151-1
1.163-10T	1.861-4	1.6695-1
1.166-10	1.931-1	1.6696-1
1.17	1.935-1	1.9100-1
1.170A	1.1012-1	5c.0
1.172	1.1041-1T	7
1.180-2	1.1081-11	16A.126-2
1.182-6	1.1101-4	18.1-7
1.190-3	1.1211-1	31.6011(a)-1 and 7
1.213-1	1.1212-1	301.6110-3 and 5
1.215-1	1.1231-2	301.6316-4 thru 6
1.254-1	1.1232-3	301.6361-1 and 3
1.265-1	1.1248-7	301.6501
1.274-5T and 6T	1.1251-2	301.6501(d)
1.280A-3	1.1254-1 and 3	301.6905-1
1.280F-3T	1.1304-1 thru 5	301.7216-2
1.302-4	1.1311(a)-1
	1.1383-1

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

The total estimated time and out-of-pocket costs, as estimated by the IRS ITBM, represent the federal income tax compliance burden for the estimated 164.5 million individual taxpayers that filed a Tax Year 2020 federal income tax return. The time and out-of-pockets costs per respondent shown were also estimated using the IRS ITBM. Due to rounding, the per respondent burden calculated using the total amounts above will be different. As a result, estimates of the cost burdens were calculated at $231 per taxpayer, with a combined estimate total of $37,960,000,000.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT

To ensure more accuracy and consistency across its information collections, IRS is currently in the process of revising the methodology it uses to estimate burden and costs. Once this methodology is complete, IRS will update this information collection to reflect a more precise estimate of burden and costs. At the present time, the IRS estimates an annual government cost to be $ 13,659,428.

Product	Labor & Downstream Impact Costs		Print & Shipping Costs		Government Cost Estimate per Product
All Forms attached	$ 9,504,743		$ 4,154,685		$ 13,659,428
Total	$ 9,504,743		$ 4,154,685		$ 13,659,428

*See supplementary document for cost per form and instructions.

15. REASONS FOR CHANGE IN BURDEN

P.L. 116-136 (H.R. 748, Coronavirus Aid, Relief and Economic Security (CARES) Act) - signed by the President on March 27, 2020, established a 2020 recovery rebate for individuals (the Economic Impact Payment (EIP).  As a result, IRS issued EIPs to help Americans during this crisis.  The issuance of these EIPs created a one-time burden increase during the 2020 calendar year to account for the temporary tax compliance requirements.  With the completed issuance of all EIPs, this burden is being removed. 

	Change in Filers	Change in Time	Change in Dollars	Change in Monetized Burden
IRS issued EIPs to help Americans during this crisis	22,750,000	4,229,167	-	-

Change in Burden due to P.L. 116-136 (H.R. 748, Coronavirus Aid, Relief and Economic Security (CARES) Act)
March – June 2020
	Original FY20 Approved Burden	Temporary Change due to EIPs	Total Approved Burden Including 2020 CARES Act	Completion of Temporary EIPs	Post CARES Act FY20 Baseline
Number of Taxpayers	159,300,000	22,750,000	182,050,000	(22,750,000)	159,300,000
Burden in Hours	1,717,000,000	4,229,167	1,721,229,167	(4,229,167)	1,717,000,000
Burden in Dollars	33,267,000,000	-	-	-	33,267,000,000

The year-over-year change in burden is analyzed and reported by technical adjustments, legislative adjustments, and agency adjustments.

Changes Due to Technical Adjustments to Agency Estimates:

The overall year-over-year change is due almost entirely to technical adjustments. The table provided below breaks down the major changes by technical adjustment type. It is important to note that the updated tax return and survey data are both from TY18 so the data and the survey incorporate activity and taxpayer experience post implementation of the Tax Cuts and Jobs Act (TCJA). The TY18 survey results indicate that out-of-pocket costs appear to have increased on the margin. Reported time amounts also increased but to a lesser extent. The increased time and money burden for these taxpayers are primarily responsible for the increase in burden. It is still unclear whether this increase is temporary or permanent. Anecdotal evidence suggests that this may be a temporary increase since many taxpayers may have collected and entered the same information compared to the prior year even though it was no longer optimal for their situation. Specifically, filers who previously itemized may have been more likely to collect and enter their itemization activity even though they ultimately claimed the standard deduction. Survey data for TY19 will be available at the end of FY21 and should insight into the permanence of these changes.

	Change in Filers	Change in Time	Change in Dollars	Change in Burden
Updated FY20 Baseline	4,300,000	73,500,000	445,000,000	1,671,000,000
Updated Tax Return Data	-	(118,000,000)	(1,015,000,000)	(396,000,000)
Updated Survey Data	-	313,500,000	4,830,000,000	8,767,000,000
FY21 Population Estimates	900,000	9,000,000	434,000,000	908,000,000
Total	5,200,000	278,000,000	4,694,000,000	10,950,000,000

Program Changes Due to New Statutes:

There were no significant year-over-year legislative changes impacting this collection.

Program Changes Due to Agency Discretion:

The only material administrative change is the roll out of Form 1040-X e-filing. Approximately 1.5 million filers are expected to e-file a Form 1040-X in FY21. Form 1040-X e-filing is estimated to decrease time burden by approximately 150,000 hours and decrease out-of-pocket costs by approximately $4,000,000.

The ICR summary of burden will be reflected in ROCIS as follows:

	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	Total Requested
Annual Number of Responses	182,050,000	0	0	(17,550,000)	0	164,500,000
Annual Time Burden (Hr)	1,721,229,167	0	(150,000)	273,920,833	0	1,995,000,000
Annual Cost Burden ($)	33,267,000,000	0	(4,000,000)	4,695,000,000	0	37,960,000,000

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION

The intent of this collection is to collect data in areas of income, gains, losses, deductions, credits, and to figure the income tax liability of a business taxpayer.

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE

We believe that displaying the OMB expiration date is inappropriate because it could cause confusion by leading taxpayers to believe that the forms sunset as of the expiration date. Taxpayers are not likely to be aware that the Service intends to request renewal of the OMB approval and obtain a new expiration date before the old one expires.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT

There are no exceptions to the certification statement.

Note: The following paragraph applies to all 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 if 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.

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