IRS must include a Privacy Act statement upon renewal of the collection and make the necessary changes to the supporting statement.
Inventory as of this Action
Requested
Previously Approved
12/31/2018
36 Months From Approved
12/31/2017
1,000
0
5,600
3,000
0
22,400
0
0
0
In 2009, legislation was passed requiring payment card processors to file Forms 1099-K reporting payment card transactions for businesses who accept this form of payment. The IRS is launching pilots aimed at determining the best method for and the value of using the 1099-K information to identify and treat non-compliant taxpayers. Notices are sent to taxpayers who have been identified as potential underreporters. The notices inform them that their return has been selected for further inquiry since the portion of their reported gross receipts attributable to 1099-K card payments appear atypically large, which may suggest potential underreporting of non-card payments (e.g. cash). Taxpayers are requested to fill out this form to correct for 1099-K data errors and provide additional information that may explain their outlier figures.
US Code:
26 USC 6050W
Name of Law: Returns Relating to Payments Made In Settlement of Payment
The Form 14420 was reformatted by adding ‘yes/no’ response boxes for each item and space for the taxpayer to provide a written response when the item is applicable to the taxpayer. Bulleted items were replaced with numbers making it easier for the taxpayer to respond to specific items. The current form’s purpose was added to the instructions box at the top of page 1, which provides transparency. The form provides the taxpayer up to five Forms 1099–K. To benefit taxpayers with up to ten Forms 1099–K, online information was added. The taxpayer has the option of going to www.IRS.gov to retrieve their Forms 1099–K filed with the IRS. Due to additions to the Form 1099–K, columns were added to the Form 14420 table to account for ‘card not present’ (online sales) and ‘number of payment transactions.’ The form’s length remains at three pages. The changes provide clarity, resulting in reduced time and reduced burden on the taxpayer to complete the form and for the tax examiners to review and evaluate taxpayer responses.
$0
No
Yes
Yes
No
No
No
Uncollected
Diane Cole 870 440-6469
No
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:
(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;
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.
Form 14420 Form 14420 - Verification of Reported Income
Form 14420 (2016)SUP STAT final.docx
Form 14420 - Verification of Reported Income