Work Opportunity Credit

Forms and Documents

Document Name	Status
Form 5884 Work Opportunity Credit Form and Instruction	Modified
07- 5884 MjrChgs.pdf Justification for No Material/Nonsubstantive Change	2007-12-19

IC Document Collections

IC ID	Document Title	Status
39717	Work Opportunity Credit Form and Instruction	Modified

ICR Details

OMB Control No: 1545-0219	ICR Reference No: 200712-1545-018
Status: Historical Active	Previous ICR Reference No: 200608-1545-077
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Work Opportunity Credit
Type of Information Collection: No material or nonsubstantive change to a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 01/10/2008
	Date Received in OIRA: 12/19/2007
Terms of Clearance: OMB changed Affected Public to "Businesses or other for-profits." The agency is reminded that it must make any necessary adjustments to the burden estimate to reflect the fact that the burden imposed on individual taxpayers by this dual-use form is accounted for under OMB Control Number 1545-0074.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	11/30/2009	11/30/2009	11/30/2009
Responses	11,677	0	11,677
Time Burden (Hours)	125,879	0	52,547
Cost Burden (Dollars)	0	0	0

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Abstract: IRC section 38(b)(2) allows a credit against income tax to employers hiring individuals from certian targeted groups such as welfare recipients, etc. The employer uses Form 5884 to figure the credit. IRS uses the information on the form to verify that the correct amount of credit was claimed.

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Authorizing Statute(s): US Code: 26 USC 51 Name of Law: Amount of credit
   US Code: 26 USC 38 Name of Law: General Business Credit
  

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:
	71 FR 37164	06/29/2006
30-day Notice:	Federal Register Citation:	Citation Date:
	71 FR 53753	09/12/2006
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Work Opportunity Credit	5884	Work Opportunity Credit

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ICR Summary of Burden

	Total Approved	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	11,677	11,677	0	0	0	0
Annual Time Burden (Hours)	125,879	52,547	0	73,332	0	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: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The Small Business and Work Opportunity Tax Act of 2007 extended the work opportunity credit to cover employees who begin work for the employer before September 1, 2011. The Act also made the following additional changes. * For individuals who begin work for you after May 25, 2007, the Act expanded the definition of a targeted employee. For details, see the June 2007 revision of the Instructions for Form 8850. * For tax years beginning after December 31, 2006, the credit is no longer limited by the alternative minimum tax rules so Form 5884 is no longer filed with Form 3800, General Business Credit. This means lines 5 through 8 are now made to accommodate the passive activity rules and the carryback of any unused credit allowed that previously would have been reported on Form 3800. Also, this means any carryforward of the credit from tax years beginning before 2007 cannot be shown on the Form 5884 currently. Such carryforwards must be shown on Form 3800. The Tax Relief and Health Care Act of 2006 added certified long-term family assistance recipients who begin work for you after December 31, 2006, to the list of targeted groups. Line 1c is added because certain qualified second-year wages paid to or incurred for these individuals are used to figure the credit.

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Annual Cost to Federal Government: $805

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? Uncollected

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Uncollected

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? Uncollected

Is this ICR related to the Pandemic Response? Uncollected

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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: 12/19/2007

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