Schedule C (Form 1040), Profit or Loss From Business

Forms and Documents

Document Name	Status
Form Schedule C (1040) Schedule C (Form 1040), Profit or Loss From Business Form	Modified
Supporting Statement.doc Supporting Statement A	2016-02-05

IC Document Collections

IC ID	Document Title	Status
43900	Schedule C (Form 1040), Profit or Loss From Business Form	Modified

ICR Details

OMB Control No: 1545-1974	ICR Reference No: 201602-1545-004
Status: Historical Active	Previous ICR Reference No: 201211-1545-024
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Schedule C (Form 1040), Profit or Loss From Business
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 08/19/2016
	Date Received in OIRA: 02/29/2016
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	08/31/2019	36 Months From Approved	08/31/2016
Responses	10,000,236	0	10,000,236
Time Burden (Hours)	72,201,704	0	71,701,693
Cost Burden (Dollars)	0	0	0

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Abstract: Schedule C (Form 1040) is used by individuals to report their business income, loss and expenses. The data is used to verify that the items reported on the form is correct and also for general statistical use.

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Authorizing Statute(s): US Code: 26 USC 6011 Name of Law: General requirement of return, statement, or list
   US Code: 26 USC 6012 Name of Law: Persons required to make returns of income
  

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:
	80 FR 79997	12/23/2015
30-day Notice:	Federal Register Citation:	Citation Date:
	81 FR 10367	02/29/2016
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
Schedule C (Form 1040), Profit or Loss From Business	Schedule C (1040)	Profit or Loss From Business

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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	10,000,236	10,000,236	0	0	0	0
Annual Time Burden (Hours)	72,201,704	71,701,693	0	500,011	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: No

Burden Reduction Due to:

Short Statement: Line 30 has been modified to allow taxpayers to enter the square footage of both (1) the home and (2) the part of the home used for business. The spaces for these two amounts should only be filled-in if the taxpayer is electing the simplified method. In most cases, if the taxpayer elects the simplified method and these two new entry amounts are completed, the dollar value for line 3 cannot exceed $1,500. However, according to the Rev. Proc. 2013-13, it is possible for a taxpayer to elect the simplified method for one home and attached a Form 8829 for another home to the same Schedule C, if both homes were used during the year in the same business. In these cases, the value of line 30 should not exceed $1,500 plus the amount from Form(s) 8829, line 35.

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Annual Cost to Federal Government: $15,000,000

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)? Yes

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: 02/29/2016

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