2019-16381. Proposed Collection; Comment Request for U.S. Employment Tax Returns and Related Forms; Forms CT-1, CT-1X, CT-2, SS-8, SS-8 (PR), W-2, W-2 AS, W-2 C, W-2 GU, W-2 VI, W-3, W-3 (PR), W-3 C, W-3 C (PR), W-3 SS, 940, 940 (PR), 940 SCH A, 940 ...  

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    AGENCY:

    Internal Revenue Service (IRS), Treasury.

    ACTION:

    Notice and request for comments.

    SUMMARY:

    The Internal Revenue Service, as part of its continuing effort to reduce paperwork and respondent burden, invites the general 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 (PRA). The IRS is soliciting comments on U.S. Employment Tax Returns and related Forms.

    DATES:

    Written comments should be received on or before September 30, 2019 to be assured of consideration.

    ADDRESSES:

    Direct all written comments to Laurie Brimmer, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 20224.

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    FOR FURTHER INFORMATION CONTACT:

    Requests for additional information or copies of the form and instructions should be directed to Kerry Dennis, at (202) 317-5751, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 20224, or through the internet, at Kerry.Dennis@irs.gov .

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    SUPPLEMENTARY INFORMATION:

    Today, over 70 percent of all employment tax returns are prepared using software or with preparer assistance. In this environment, in which many taxpayers' activities are no longer as directly associated with particular forms, estimating burden on a form-by-form basis is not an appropriate measurement of taxpayer burden.

    There are 50 employment tax related forms used by 7,000,000 taxpayers. These include Forms CT-1, CT-1X, CT-2, SS-8, SS-8 (PR), W-2, W-2 AS, W-2 C, W-2 GU, W-2 VI, W-3, W-3 (PR), W-3 C, W-3 C (PR), W-3 SS, 940, 940 Start Printed Page 37712(PR), 940 SCH A, 940 SCH A (PR), 940 SCH R, 941, 941 (PR), 941 SCH B, 941 SCH B (PR), 941 SCH D, 941 SCH R, 941 SS, 941 X, 941 X (PR), 943, 943 (PR), 943 A, 943 A (PR), 943 SCH R, 943 X, 943 X (PR), 944, 944 X, 945, 945 A, 945 X, 2032, 2678, 8027, 8027 T, 8453 EMP, 8879 EMP, 8922, 8952, and 8974.

    Related Internal Revenue Service and The Department of Treasury Guidance:

    26 CFR 31.6001-1 Records in general; 26 CFR 31.6001-2 Additional Records under FICA; 26 CFR 31.6001-3, Additional records under Railroad Retirement Tax Act; 26 CFR 31.6001-5 Additional records

    Tip Reporting Alternative Commitment (TRAC) Agreement for Use in the Cosmetology and Barber Industry to Employment Tax

    Reg-111583-07(TD 9405)(Final)—Employment Tax Adjustments; REG-130074-11—Rules Relating to Additional Medicare Tax

    For most of these collections, IRS has in the past obtained separate OMB approvals under unique OMB Control Numbers and separate burden estimates. With this notice, the IRS is announcing significant changes to (1) the manner in which tax forms used by employers will be approved under the PRA and (2) its method of estimating the paperwork burden imposed on all employers.

    Tax Compliance Burden

    Tax compliance burden is defined as the time and money taxpayers spend to comply with their tax filing responsibilities. Time-related activities include recordkeeping, tax planning, gathering tax materials, learning about the law and what you need to do, and completing and submitting the return. Out-of-pocket costs include expenses such as purchasing tax software, paying a third-party preparer, and printing and postage. Tax compliance burden does not include a taxpayer's tax liability, economic inefficiencies caused by sub-optimal choices related to tax deductions or credits, or psychological costs. The TCBM estimates the aggregate burden imposed on business taxpayers, based upon their tax-related characteristics and activities. IRS therefore will seek OMB approval of all 50 Employment Tax forms as a single “collection of information.” The aggregate burden of these tax forms will be accounted for under OMB Control Number 1545-0029, which is currently assigned to Form 941, 941-PR, 941-SS, 941-X, 941-X(PR), Schedule B (Form 941), Schedule B (Form 941-PR), Schedule R (Form 941), 941-SS-V, 941-V, 941-X, 941-X(PR) and its related schedules. OMB Control Number 1545-0029 will be displayed on all employment-tax forms and other related information collections. As a result, employment tax burden-related estimates will be displayed differently in PRA Notices on tax forms and other information collections, and in Federal Register notices. This way of displaying burden is presented below under the heading “Proposed PRA Submission to OMB.” For more information about tax compliance burden and the TBM, go to the article “Tax Compliance Burden” posted on the IRS website at https://www.irs.gov/​pub/​irs-soi/​d13315.pdf.

    Taxpayer Burden Estimates

    The estimates are subject to change as new forms and data become available.

    Proposed PRA Submission to OMB

    Title: U.S. Employment Tax Returns and related Forms.

    OMB Number: 1545-0029.

    Form Numbers: Forms CT-1, CT-1X, CT-2, SS-8, SS-8 (PR), W-2, W-2 AS, W-2 C, W-2 GU, W-2 VI, W-3, W-3 (PR), W-3 C, W-3 C (PR), W-3 SS, 940, 940 (PR), 940 SCH A, 940 SCH A (PR), 940 SCH R, 941, 941 (PR), 941 SCH B, 941 SCH B (PR), 941 SCH D, 941 SCH R, 941 SS, 941 X, 941 X (PR), 943, 943 (PR), 943 A, 943 A (PR), 943 SCH R, 943 X, 943 X (PR), 944, 944 X, 945, 945 A, 945 X, 2032, 2678, 8027, 8027 T, 8453 EMP, 8879 EMP, 8922, 8952, and 8974.

    Abstract: These forms are used by employers to report their employment tax related activity. The data is used to verify that the items reported on the forms are correct.

    Current Actions: The burden estimation methodology for employment tax is being transitioned from the legacy ADL model to the Taxpayer Burden Model. The changes discussed above result in a burden hour estimate of 575,000,000 hours, a decrease in total estimated time burden of 53,519,249 hours. The newly-reported total out-of-pocket costs is $15,030,000,000 and total monetized burden is $25,200,000,000. These changes are solely related to the transition of the burden estimate from the legacy Arthur D. Little Model methodology to the RAAS Taxpayer Burden Model. This is a one-time change.

    Type of Review: Revision of currently approved collections.

    Estimates Total Time (Hours): 575,000,000.

    Estimated Total Out-of-Pocket Costs: $15,030,000,000.

    Estimated Total Monetized Burden: $25,200,000,000.

    Affected Public: Employers.

    Estimated Number of Respondents: 7,000,000.

    Total Estimated Time: 575,000,000 hours.

    Estimated Time Per Respondent: 82 hours.

    Total Estimated Out-of-Pocket Costs: $15,030,000,000.

    Estimated Out-of-Pocket Cost Per FY2020 Respondent: $2,147.

    Total Estimated Monetized Burden: $25,200,000,000.

    Estimated Monetized Burden Per FY2020. Respondent: $3,600.

    Note:

    Amounts below are for FY2020. 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. Detail may not add due to rounding.

    Fiscal Year 2020 ICB Estimates for Form 94X Series and Related Forms, Schedules, and Regulations

    ADL 2020 to Taxpayer Burden Model 2020
    ADL method (legacy) FY 2020Program change due to adjustment in estimateProgram change due to new legislationProgram change due to agency discretionTaxpayer burden model FY 2020
    Number of Taxpayers333,600,411326,600,4117,000,000
    Burden in Hours628,519,249(53,519,249)00575,000,000
    Burden in Dollars$15,030,000,00000$15,030,000,000
    Monetized Total Burden$25,200,000,00000$25,200,000,000
    Detail may not add due to rounding.
    Source RAAS:KDA:TBL 7/10/2019.
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    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.

    Request for Comments

    Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency's estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.

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    Approved: July 22, 2019.

    Laurie Brimmer,

    Senior Tax Analyst.

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    Appendix A

    FormTitle/descriptionOMB number
    CT-1Employer's Annual Railroad Retirement Tax Return1545-0001
    CT-1XAdjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund1545-0001
    CT-2Employee Representative's Quarterly Railroad Tax Return1545-0002
    SS-8Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding1545-0004
    SS-8 (PR)Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax (Puerto Rican Version)1545-0004
    W-2Wage and Tax Statement1545-0008
    W-2 ASAmerican Samoa Wage and Tax Statement1545-0008
    W-2 CCorrected Wage and Tax Statement1545-0008
    W-2 GUGuam Wage and Tax Statement1545-0008
    W-2 VIU.S. Virgin Islands Wage and Tax Statement1545-0008
    W-3Transmittal of Wage and Tax Statements1545-0008
    W-3 (PR)Transmittal of Withholding Statements (Puerto Rican Version)1545-0008
    W-3 CTransmittal of Corrected Wage and Tax Statements1545-0008
    W-3 C (PR)Transmittal of Corrected Wage and Tax Statements (Puerto Rican Version)1545-0008
    W-3 SSTransmittal of Wage and Tax Statements1545-0008
    940Employer's Annual Federal Unemployment (FUTA) Tax Return1545-0028
    940 (PR)Employer's Annual Federal Unemployment (FUTA) Tax Return (Puerto Rican Version)1545-0028
    940 SCH AMulti-State Employer and Credit Reduction Information1545-0028
    940 SCH A (PR)Multi-State Employer and Credit Reduction Information (Puerto Rican Version)1545-0028
    940 SCH RAllocation Schedule for Aggregate Form 940 Filers1545-0028
    941Employer's Quarterly Federal Tax Return*1545-0029
    941 (PR)Employer's Quarterly Federal Tax Return*1545-0029
    941 SCH BReport of Tax Liability for Semiweekly Schedule Depositors*1545-0029
    941 SCH B (PR)Supplemental Record of Federal Tax Liability (Puerto Rican Version)*1545-0029
    941 SCH DReport of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations*1545-0029
    941 SCH RReconciliation for Aggregate Form 941 Filers*1545-0029
    941 SSEmployer's QUARTERLY Federal Tax Return (American Samoa, Guam, the Commonwealth of Northern Mariana Islands, and the U.S. Virgin Islands)*1545-0029
    941 XAdjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund*1545-0029
    941 X (PR)Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund (Puerto Rico Version)*1545-0029
    943Employer's Annual Tax Return for Agricultural Employees1545-0035
    943 (PR)Employer's Annual Tax Return for Agricultural Employees (Puerto Rican Version)1545-0035
    943 AAgricultural Employer's Record of Federal Tax Liability1545-0035
    943 A (PR)Agricultural Employer's Record of Federal Tax Liability (Puerto Rican Version)1545-0035
    943 RAllocation Schedule for Aggregate Form 943 Filers1545-0035
    943 XAdjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund1545-0035
    943 X (PR)Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund1545-0035
    944Employer's ANNUAL Federal Tax Return1545-2007
    944 XAdjusted Employer's ANNUAL Federal Tax Return or Claim for Refund1545-2007
    945Annual Return of Withheld Federal Income Tax1545-1430
    945 AAnnual Record of Federal Tax Liability1545-1430
    945 XAdjusted ANNUAL Return of Withheld Federal Income Tax or Claim for Refund1545-1430
    2032Contract Coverage Under Title II of the Social Security Act1545-0137
    2678Employer/Payer Appointment of Agent1545-0748
    8027Employer's Annual Information Return of Tip Income and Allocated Tips1545-0714
    8027 TTransmittal of Employer's Annual Information Return of Tip Income and Allocated Tips1545-0714
    8453 EMPEmployment Tax Declaration for an IRS e-file Return1545-0967
    8879 EMPIRS e-file Signature Authorization for Forms 940, 940-PR, 941, 941-PR, 941-SS, 943, 943-PR, 944, and 9451545-0967
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    8922Third-Party Sick Pay Recap*1545-0123
    8952Application for Voluntary Classification Settlement Program (VCSP)1545-2215
    8974Qualified Small Business Payroll Tax Credit for Increasing Research Activities1545-0029
    *1545-0123 will not be discontinued. It is the Business collection and 8922 will be included in both the Business collection and the Employment Tax collection.
    *1545-0029 will not be discontinued it will be the number assigned to all Forms within the employment tax collection.

    Appendix B

    Guidance title/descriptionOMB number
    26 CFR 31.6001-1 Records in general; 26 CFR 31.6001-2 Additional Records under FICA; 26 CFR 31.6001-3, Additional records under Railroad Retirement Tax Act; 26 CFR 31.6001-5 Additional records1545-0798
    Tip Reporting Alternative Commitment (TRAC) Agreement for Use in the Cosmetology and Barber Industry to Employment Tax1545-1529
    Reg-111583-07(TD 9405)(Final)—Employment Tax Adjustments; REG-130074-11—Rules Relating to Additional Medicare Tax1545-2097
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    [FR Doc. 2019-16381 Filed 7-31-19; 8:45 am]

    BILLING CODE 4830-01-P

Document Information

Published:
08/01/2019
Department:
Treasury Department
Agency:
Internal Revenue Service
EntryType:
Notice
Action:
Notice and request for comments.
Document Number:
2019-16381
Dates:
Written comments should be received on or before September 30, 2019 to be assured of consideration.
Pages:
37711-37714 (4 pages)
SectionNoes:
PDF File:
2019-16381.pdf