SUP STAT (Rev. Proc. 2006-10) (MB)

SUPPORTING STATEMENT

Internal Revenue Service (IRS)

Rev. Proc. 2006-10, Acceptance Agent Revenue Procedure

OMB #1545-1499

1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

IRC §6109 provides that, when required by regulations, a person must include an identifying number on a return, statement or other document. Treas. Reg. §301.6109-1(a) prescribes three types of identifying numbers; (1) a social security number (SSN), (2) an employer identification number (EIN), and (3) a new IRS-issued number called the IRS individual taxpayer identifying number (ITIN). The application form for EINs and ITINs is Form SS-4, and Form W-7, respectively. A taxpayer may either submit the application form and substantiating documentation (if required) for either an EIN or an ITIN directly to the IRS or, as provided in section 301.6109-1(d)(iv), apply for an EIN or an ITIN by using an acceptance agent.

Under an agreement with the IRS, an acceptance agent would assume responsibility for assisting certain foreign persons in obtaining EINs and ITINs. This responsibility includes providing the application forms to the taxpayers, assisting taxpayers in completing the application forms and collecting, reviewing, and maintaining the required documentation. With respect to obtaining ITINs, an acceptance agent may assume greater responsibility by reviewing the required documentation and certifying that the documentation verifies the ITIN applicant’s true identity and alien status. The “certifying” acceptance agent would not have to forward the documentation to the IRS, except as part of a verification process by which the IRS may periodically verify the agent’s compliance with the agreement. Section 301.6109-1(d)(vi)(A) outlines the necessary provisions of an acceptance agent agreement. The revenue procedure provides information about the application process to become an acceptance agent, and further elaboration on the terms of the requisite agreement. This application process and its associated Form 13551 is currently approved under OMB Control Number 1545-1896.

2. USE OF DATA

The information will be used as guidance for qualification as an acceptance agent and execution of an agreement between an acceptance agent and the IRS relating to the issuance of certain taxpayer identifying numbers.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

There are no reporting requirements associated with Rev. Proc. 2006-10. Therefore, electronic filing is not possible.

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

There is no burden on small businesses or entities by this collection due to the inapplicability of the authorizing statute to this type of entity.

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

This revenue procedure describes the application procedures for becoming an acceptance agent and the requisite agreement that an acceptance agent must execute with the IRS. Less frequent collection of this information will negatively impact the ability for individuals to become Acceptance Agents.

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 March 30, 2022 (87 FR 18472), IRS received no comments during the comment period regarding this revenue procedure.

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

There is no sensitive personally identifiable information (PII) in this collection.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION

The burden for the application process is included in OMB Control Number 1545-1896. The burden estimate for the disclosure and recordkeeping requirements are as follows:

Estimated Number of Respondents: 4,422.

Estimated Responses per Respondent: 32.540625

Estimated Number of Responses: 143,895

Estimated Time per Respondent: 3 hours, 7 minutes

Estimated Total Annual Burden Hours: 13,797 hours

OMB #	Number of Respondents	Responses per Respondent	Annual Responses	Time per Respondent*	Total Annual Burden Hours
1545-1499	4,422	32.540625	143,895	3.12	13,797
Total	4,422		143,895		13,797

*The 3.12 hours represents the time each respondent takes to meet the disclosure requirements of the Revenue Procedure and retain the associated records.

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

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.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT

There is no cost to the Federal government as this is a disclosure and recordkeeping requirement.

15. REASONS FOR CHANGE IN BURDEN

There is no change in the paperwork burden previously approved by OMB. IRS is making this submission to renew the OMB approval. However, the burden for the Rev Proc 2006-10 has decreased due to better estimates on the number of respondents. This decreases the number of responses by -116,430 and decreases the total burden hours by -11,163 due to an adjustment in Agency Estimates.

	Requested	Program Change Due to New Statute	Program Change Due to Agency Discretion	Change Due to Adjustment in Agency Estimate	Change Due to Potential Violation of the PRA	Previously Approved
Annual Number of Responses	143,895	0	0	-116,430	0	260,325
Annual Time Burden	13,797	0	0	-11,163	0	24,960

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION

There are no plans for tabulation, statistical analysis and publication.

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE

IRS believes that displaying the OMB expiration date is inappropriate because it could cause confusion by leading taxpayers to believe that this revenue procedure sunsets as of the expiration date. Taxpayers are not likely to be aware that the IRS intends to request renewal of the OMB approval and obtain a new expiration date before the old one expires.

18. EXCEPTION TO THE CERTIFICATION STATEMENT

There are no exceptions to the certification statement for this collection.

Note: The following paragraph applies to all of 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 as long as 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.