Each year, individual taxpayers in the United States submit more than 140 million tax returns to the Internal Revenue Service (IRS). The IRS uses the information in these returns, recorded on roughly one hundred distinct forms and supporting schedules, to administer a tax system whose rules span thousands of pages. Managing such a complex and broad-based tax system is costly but represents only a fraction of the total burden of the tax system. Equally, if not more burdensome, is the time and out-of-pocket expenses that taxpayers spend in order to comply with tax laws and regulations.
Changes in tax regulations, tax administration, tax preparation methods, and taxpayer behavior continue to alter the amount and distribution of taxpayer burden. The purpose of these surveys is to gather data that will be used to update and expand the IRS Taxpayer Burden Model, a robust predictive model based on an improved burden estimation methodology. Information gathered by the surveys is not available in the administrative tax return data, so survey data are a critical input to the model. The survey data are not viewed discretely. Rather, because the data are used as inputs to the Taxpayer Burden Model, they provide an end-to-end, taxpayer facing view of compliance burden. The related behavioral studies further inform IRSâs understanding of taxpayer behavior, inform burden model design, and help IRS improve processes and identify opportunities to reduce taxpayer burden.
US Code:
44 USC 3501
Name of Law: COORDINATION OF FEDERAL INFORMATION POLICY
The change in the burden hour estimate is updated to reflect the expected burden hours to be imposed for the relevant period 6/1/2023 â 5/31/2026. This effort represents a continuation of the IRSâs strategy to gather taxpayer burden data for all types of tax returns and information reporting documents in order to support Wage and Investmentâs OMB Improvement Strategy to transition burden estimates for all taxpayers to the preferred RAAS burden estimation methodology.
The estimated number of responses has been reduced to 166,825 from 225,246 based on updated IRS data. There is a burden change of -38,603 due to Agency Estimate based on the expected number of survey participants, and -57,784 burden change due to Agency Discretion to remove discontinued surveys.
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:
(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;
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.
PART B-Supporting STATEMENT -FINAL.docx
2021 Other Taxpayer Segment Special Survey (Data collection 3/31/2022 – 5/31/2023)