Form 1127 &1127-A---- Application for Extension of Time for Payment of Tax

Forms and Documents

Document Name	Status
Form Form 1127-A Form 1127-A---Application for Extension of Time for Payment of IncomeTax for 211 Due to Undue Hardship Form and Instruction	New
Form Form 1127 Form 1127----Application for Extension of Time for Payment of Tax Form and Instruction	Modified
OMB Expiration Statement.doc Supplementary Document	2012-01-30
Policy advice (draft 11-03-2011).doc Supplementary Document	2012-01-30
Justification Statement.doc Justification for No Material/Nonsubstantive Change	2012-01-30
Supporting Statement.doc Supporting Statement A	2012-01-30

IC Document Collections

IC ID	Document Title	Status
200942	Form 1127-A---Application for Extension of Time for Payment of IncomeTax for 211 Due to Undue Hardship Form and Instruction	New
187425	Form 1127----Application for Extension of Time for Payment of Tax Form and Instruction	Modified

ICR Details

OMB Control No: 1545-2131	ICR Reference No: 201201-1545-019
Status: Historical Active	Previous ICR Reference No: 200906-1545-040
Agency/Subagency: TREAS/IRS	Agency Tracking No: EC-1545-2131-019
Title: Form 1127 &1127-A---- Application for Extension of Time for Payment of Tax
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 without change	Conclusion Date: 02/02/2012
	Date Received in OIRA: 01/31/2012
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	08/31/2012	08/31/2012	08/31/2012
Responses	2,000	0	1,000
Time Burden (Hours)	8,680	0	7,960
Cost Burden (Dollars)	0	0	0

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Abstract: Under IRC 6161, individual taxpayers and business taxpayers are allowed to request an extension of time for payment of tax shown or required to be shown on a return or for a tax due on a notice of deficiency. In order to be granted this extension, they must file Form 1127, providing evidence of undue hardship, inability to borrow, and collateral to ensure payment of the tax. Under IRC 6161 and the Service's Fresh Start initiative, individual taxpayers are allowed to request an extension of time for payment of tax shown or required to be shown on a return for 2011. In order to be granted this extension, they must file Form 1127-A, self-certifying hardship due to the current economic downturn.

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Authorizing Statute(s): US Code: 26 USC 6161 Name of Law: Extension of time for paying tax
  

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:
	74 FR 15055	04/02/2009
30-day Notice:	Federal Register Citation:	Citation Date:
	74 FR 30677	06/26/2009
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

IC Title	Form No.	Form Name
Form 1127----Application for Extension of Time for Payment of Tax	Form 1127	Application for Extension of Time for Payment of Tax
Form 1127-A---Application for Extension of Time for Payment of IncomeTax for 211 Due to Undue Hardship	Form 1127-A	Application for Extension of Time for Payment of Income Tax for 2011 Due to Undue Hardship

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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	2,000	1,000	0	1,000	0	0
Annual Time Burden (Hours)	8,680	7,960	0	720	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: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Changing Forms

Short Statement: Program Change Due to Agency Discretion: 1) Per the Program Manager, lines were deleted from Form 1127. This resulted in a 490 decrease to total burden hours. 2) Under IRC 6161 and the Service's Fresh Start initiative, individual taxpayers are allowed to request an extension of time for payment of tax shown or required to be shown on a return for 2011 only using separate Form 1127-A. The audience for Form 1127-A is very limited. This is different from Form 1127 which allows for extensions to pay not only income taxes but also, withheld taxes on nonresident aliens and foreign corporations, taxes on private foundations and certain other tax-exempt organizations, taxes on qualified investment entities, taxes on greenmail, taxes on structured settlement factoring transactions, and gift taxes. The IRS expects the same amount of filers who filed Form 1127 in 2010 to file in 2011; but expects a distinct new group of filers to file the 1127-A, which will increase the number of respondents by 1,000. The burden per response on the Form 1127-A is estimated at 1.21 hours; whereas it takes a taxpayer 7.47 hours to complete Form 1127. Form 1127-A will increase the burden by 1,210 hours for a total burden of 8,680 hours.

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Annual Cost to Federal Government: $9,000

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]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

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: 01/31/2012

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