[Federal Register Volume 81, Number 77 (Thursday, April 21, 2016)]
[Notices]
[Pages 23551-23552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09295]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
Proposed Collection; Comment Request for Form 14420
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice and request for comments.
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SUMMARY: The Department of the Treasury, as part of its continuing
effort to reduce paperwork and respondent burden, invites the general
public and other Federal agencies to take this opportunity to comment
on proposed and/or continuing information collections, as required by
the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C.
3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning
Form 14420, Verification of Reported Income.
DATES: Written comments should be received on or before June 20, 2016
to be assured of consideration.
ADDRESSES: Direct all written comments to Tuawana Pinkston, Internal
Revenue Service, Room 6526, 1111 Constitution Avenue NW., Washington,
DC 20224.
FOR FURTHER INFORMATION CONTACT: Requests for additional information or
copies of the form and instructions should be directed to Martha R.
Brinson, Internal Revenue Service, Room 6526, 1111 Constitution Avenue
NW., Washington, DC 20224, or through the Internet at
[email protected].
SUPPLEMENTARY INFORMATION:
Title: Verification of Reported Income.
[[Page 23552]]
OMB Number: 1545-2236.
Form Number: Form 14420.
Abstract: The Pilots are aimed at determining the best method for
and value of using the Form 1099-K information to identify and treat
non-compliance. This is expected to result in the identification of
cases of gross receipts underreporting. As a result, this effort will
also test treatment streams to allow the IRS to work these cases. One
of these treatment streams is a notice process. Requesting the books
and records needed to verify the gross receipts discrepancy through a
notice process would result in extensive taxpayer burden. Instead, the
taxpayer can fill out this form, which requests the minimum information
needed for us to refine our analysis of the taxpayer's return and
determine if there are any reporting errors/business characteristics
that may explain their outlier reported figures.
Current Actions: 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.
Type of Review: Revisions of a currently approved collection.
Affected Public: Businesses and other for-profit organizations,
Individuals or Households.
Estimated Number of Respondents: 1,000.
Estimated Time per Respondent: 4 hours.
Estimated Total Annual Burden Hours: 4,000.
The following paragraph applies to all of the collections of
information covered by this notice:
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid OMB control number. Books or records
relating to a collection of information must be retained as long as
their contents may become material in the administration of any
internal revenue law. Generally, tax returns and tax return information
are confidential, as required by 26 U.S.C. 6103.
Request for Comments: Comments submitted in response to this notice
will be summarized and/or included in the request for OMB approval. All
comments will become a matter of public record. Comments are invited
on: (a) Whether the collection of information is necessary for the
proper performance of the functions of the agency, including whether
the information shall have practical utility; (b) the accuracy of the
agency's estimate of the burden of the collection of information; (c)
ways to enhance the quality, utility, and clarity of the information to
be collected; (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology; and (e)
estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Approved: April 11, 2016.
Tuawana Pinkston,
IRS Reports Clearance Officer.
[FR Doc. 2016-09295 Filed 4-20-16; 8:45 am]
BILLING CODE 4830-01-P