Voluntary Disclosure Practice and Streamlined Filing Compliance Procedures

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
Form 14457 Voluntary Disclosure Practice Preclearance Request and Application	Form and Instruction	New	Repair queued
Form 15023 Offshore Compliance Status Response	Form and Instruction	Unchanged	Repair queued
Form 14653 Streamlined Non-filer Program	Form	Modified	Repair queued
Form 14467 Statement of Dissolved Entities	Form	Removed	Repair queued
OMB Control No. 1545-2241 Supporting Statement_final.docx	Supporting Statement A	Uploaded 2021-09-30	Repair queued

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
248943	Voluntary Disclosure Practice Preclearance Request and Application	Form and Instruction	New
228403	Offshore Compliance Status Response	Form and Instruction	Unchanged
217030	Streamlined Non-filer Program	Form	Modified
205421	Statement of Dissolved Entities	Form	Removed
205415	OVDP Foreign Account or Asset Statement	Other-Statement	Removed
205414	OVDP Penalty Computation Worksheet	Other-Worksheet	Removed
205413	OVDP Submission Requirements	Other-Form 14457	Removed

ICR Details

OMB Control No: 1545-2241	ICR Reference No: 202108-1545-012
Status: Received in OIRA	Previous ICR Reference No: 201803-1545-004
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Voluntary Disclosure Practice and Streamlined Filing Compliance Procedures
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 09/30/2021

table that charts list comparision

	Requested	Previously Approved
Expiration Date	36 Months From Approved	10/31/2021
Responses	16,569	474,569
Time Burden (Hours)	411,138	863,638
Cost Burden (Dollars)	0	0

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Abstract: The IRS has two very different compliance paths for two very different populations of taxpayers (taxpayers who have exposure to criminal liability for tax and tax-related crimes and taxpayers who have non-willful international compliance issues). First, the Voluntary Disclosure Practice is a longstanding practice of IRS Criminal Investigation (CI). CI takes timely, accurate, and complete voluntary disclosures under consideration when determining whether to recommend criminal prosecution. A voluntary disclosure will not automatically guarantee immunity from prosecution; however, a voluntary disclosure may result in prosecution not being recommended. Form 14457 is used for all voluntary disclosures. This redesigned form is to be used by taxpayers to apply for the IRS-CI Voluntary Disclosure Practice (VDP). The form is submitted by the taxpayer in two parts. Part I is a preclearance request. Once a taxpayer receives preclearance from IRS-CI, they will submit Part II, the voluntary disclosure application. Versions prior to March 2019 were used by taxpayers to apply for the IRS Offshore Voluntary Disclosure Program (OVDP) that closed on September 28, 2018. Second, the Streamlined Filing Compliance Procedures are available to eligible taxpayers who can truthfully certify that their failure to report foreign financial assets and pay all tax due in respect of those assets resulted from non-willful conduct. Forms 14653, 15023, and 14654 relate to the Streamlined Filing Compliance Procedures. The IRS uses the data on Form 14457 in administering Criminal Investigation’s Voluntary Disclosure Practice. The use of information collected with respect to the Voluntary Disclosure Practice and the Streamlined Filing Compliance Procedures is a necessary for the Commissioner to use his enforcement discretion and authority to offer specific compliance paths with favorable penalty provisions under IRC § 7803(a)(2)(A) granting him the authority to “administer, manage, conduct, direct, and supervise the execution and application of the internal revenue laws or related statutes and tax conventions to which the United States is a party.” Additionally, IRC § 6001 requires taxpayers to retain records relating to tax liabilities and tax returns and is thereby related to the information collected by the forms used in the Voluntary Disclosure Practice and the Streamlined Filing Compliance Procedures.

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Authorizing Statute(s): US Code: 26 USC 7803(a)(2)(A) Name of Law: Commissioner of Internal Revenue; other officials
   US Code: 26 USC 6001 Name of Law: Period covered by returns or other documents
  

Citations for New Statutory Requirements: None

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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 40138	07/26/2021
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: 3

table that charts list of burden

IC Title	Form No.	Form Name
OVDP Foreign Account or Asset Statement
OVDP Penalty Computation Worksheet
OVDP Submission Requirements
Offshore Compliance Status Response	15023	Offshore Compliance Status Response
Statement of Dissolved Entities	14467	Statement on Abandoned Entities
Streamlined Non-filer Program	14654, 14653	Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures ,   Certification by U.S. Person Residing in the United States for Streamlined Domestic Offshore Procedures
Voluntary Disclosure Practice Preclearance Request and Application	14457	Voluntary Disclosure Practice Preclearance Request and Application

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ICR Summary of Burden

table that charts list 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	16,569	474,569	0	-455,500	-2,500	0
Annual Time Burden (Hours)	411,138	863,638	0	-642,500	190,000	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Miscellaneous Actions

Short Statement: The IRS made changes to the forms in the collection, and certain forms are now obsolete due to the Offshore Voluntary Disclosure Program (OVDP) closing in September 2018. The OVDP was a subset of the larger voluntary disclosure practice (VDP). The subset program was closed, however there are forms being used in the macro level VDP. Form 14467 is now obsolete resulting in a reduction of burden of 500 responses and 500 hours. OVDP Submission Requirements, OVDP Penalty Computation Worksheet, and OVDP Foreign Account or Asset Statement have been removed, as these are also obsolete, further reducing burden by 456,000 responses and 642,500 burden hours. In addition, Form 14457 was significantly revised in order to accomplish the IRS’ goals relating to thorough preclearance and preliminary acceptance procedures for the voluntary disclosure practice. There is an increase of burden with the addition of 1,000 responses and 80,000 burden hours. For a decrease in burden under agency discretion of 455,500 responses and decrease of 722,500 burden hours. Form 14653 and Form 14654 responses and hours were updated to reflect the agencies most recent data. These changes resulted in a 2,500 response decrease and an 190,000 hour increase (update in agency estimates).

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Annual Cost to Federal Government: $0

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.     Yes

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: 09/30/2021

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