TD XXXX - De Minimis Error Safe Harbor Exceptions to Penalties for Failure to File Correct Information Returns or Furnish Correct Payee Statements

Forms and Documents

Document Name	Status
SUP STAT. (TD-XXXX) -- De Minimis Error Safe Harbor Final Regulation (Updated 1192022) (003).docx Supporting Statement A	2022-01-20

IC Document Collections

IC ID	Document Title	Status
249422	De Minimis Error Safe Harbor Exceptions to Penalties for Failure to File Correct Information Returns or Furnish Correct Payee Statements	Modified

ICR Details

OMB Control No: 1545-2301	ICR Reference No: 202201-1545-029
Status: Received in OIRA	Previous ICR Reference No: 202109-1545-006
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: TD XXXX - De Minimis Error Safe Harbor Exceptions to Penalties for Failure to File Correct Information Returns or Furnish Correct Payee Statements
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 01/25/2022

	Requested	Previously Approved
Expiration Date	36 Months From Approved
Responses	16,123,292	0
Time Burden (Hours)	992,102	0
Cost Burden (Dollars)	0	0

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Abstract: Under sections 6721 and 6722 payees may elect that an exception to penalties not apply so that penalties may apply if filers don't provide corrected returns and statements. The collection of information will be the election, revocation of the election, notification of the election, and specified record retention regarding these actions. The collection is necessary for the effective operation of the exception and election. Respondents are payees or filers.

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Authorizing Statute(s): US Code: 26 USC 6721 Name of Law: Failure to file correct information returns
   PL: Pub.L. 114 - 113 202 Name of Law: Protecting Americans from Tax Hikes Act of 2015 (PATH Act)
   US Code: 26 USC 6722 Name of Law: Failure to furnish correct payee statements
  

Citations for New Statutory Requirements: PL: Pub.L. 114 - 113 202

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1545-BN59	Final or interim final rulemaking	87 FR 99999	01/25/2022

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Federal Register Notices & Comments

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
De Minimis Error Safe Harbor Exceptions to Penalties for Failure to File Correct Information Returns or Furnish Correct Payee Statements

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ICR Summary of Burden

	Total Request	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	16,123,292	0	16,123,292	0	0	0
Annual Time Burden (Hours)	992,102	0	992,102	0	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

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

Burden Increase Due to:

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

Burden Reduction Due to:

Short Statement: This is a new information collection implementing PL 114-113 (Protecting Americans from Tax Hikes Act) regarding the de minimis error safe harbor exceptions from information reporting penalties under Internal Revenue Code (IRC) sections 6721 and 6722.

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Annual Cost to Federal Government: $0

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     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? No

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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: 01/25/2022

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