2022-27468. Agency Information Collection Activities; Submission for OMB Review; Comment Request; U.S. Income Tax Return for Individual Taxpayers

AGENCY:

Departmental Offices, Department of the Treasury.

ACTION:

Notice.

SUMMARY:

The Internal Revenue Service, as part of its continuing effort to reduce paperwork and respondent burden, invites the public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995. Currently, the IRS is soliciting comments concerning the burden associated with the U.S. Income Tax Return Forms for Individual Taxpayers.

DATES:

Comments should be received on or before January 18, 2023 to be assured of consideration.

ADDRESSES:

Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to www.reginfo.gov/​public/​do/​PRAMain. Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.

Copies of the submissions may be obtained from Melody Braswell by emailing [e-mail], calling [phone], or viewing the entire information collection request at www.reginfo.gov.

SUPPLEMENTARY INFORMATION:

Internal Revenue Service (IRS)

Title: U.S. Income Tax Return for Individual Taxpayers.

OMB Control Number: 1545-0074.

Form Number: Form 1040 and affiliated return forms.

Abstract: IRC sections 6011 & 6012 of the Internal Revenue Code 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. 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 as explained in the attached table.

Current Actions: There have been changes in regulatory guidance related to various forms approved under this approval package during the past year. Additionally, there have been additions and removals of some forms included in this approval package. The number of estimated filers for FY22 has been increased based on data on the number of Tax Year 2021 Form 1040 filings and IRS models have been updated to account for macroeconomic inputs such as inflation. Overall, updated tax return data adjustments result in a slightly lower average time burden per response and a slightly higher out-of-pocket cost per response.

Affected Public: Individuals or households.

Estimated Number of Respondents: 172,600,000.

Total Estimated Time: 2.211 billion hours (2,211,000,000 hours).

Estimated Time per Respondent: 12.81 hours.

Total Estimated Monetized Time: $42.460 billion ($42,460,000,000).

Estimated Monetized Time per Respondent: $246.

Total Estimated Out-of-Pocket Costs: $42.972 billion ($42,972,000,000).

Estimated Out-of-Pocket Cost per Respondent: $249.

Total Monetized Burden Costs: $85.432 billion ($85,432,000,000).

Estimated Total Monetized Burden per Respondent: $495.

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	13	6	2	4	1	$250	$500
Type of Taxpayer:
Nonbusiness **	72	8	3	1	3	1	140	280
Business ***	28	25	12	5	6	2	530	1,060
Note: This table does not include 1040NR, 1040NR-EZ, and 1040X filers.
* Detail may not add to total due to rounding. Hours are rounded to nearest hour. Dollars rounded to the nearest $10.
** A “nonbusiness” filer does not file any of these schedules or forms with Form 1040.
*** A “business” filer files one or more of the following with Form 1040: Schedule C, C-EZ, E, F, Form 2106, or 2106-EZ.
Source: RAAS:KDA (11-21-2022).

Taxpayer Burden Statistics by Total Positive Income Quintile

	Average time (hours)	Average out-of-pocket costs	Average total monetized burden
All Filers
Total positive income quintiles
0 to 20	7.3	$76	$136
20 to 40	10.9	126	233
40 to 60	11.6	162	313
60 to 80	13.1	226	457
80 to 100	21.6	664	1,351
Wage and Investment Filers
Total Income Decile:
0 to 20	6.2	65	115
20 to 40	8.9	109	200
40 to 60	8.6	133	256
60 to 80	8.5	173	348
80 to 100	9.8	298	651
Self Employed Filers
Total Income Decile:
0 to 20	13.4	132	243
20 to 40	20.3	204	388
40 to 60	22.4	261	513
60 to 80	23.0	341	694
80 to 100	31.7	978	1,952
Source: RAAS:KDA (11-21-2022).

Authority:44 U.S.C. 3501 et seq.

Spencer W. Clark,

Treasury PRA Clearance Officer.