View Information Collection Request (ICR) Package

OMB Control No: 1545-0028	ICR Reference No: 201009-1545-023
Status: Historical Inactive	Previous ICR Reference No: 200909-1545-036
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Employer's Annual Federal Unemployment (FUTA) Tax Return (Form 940); Planilla Para La Declaracion Anual Del Patrono-La Contribucion Federal Para El Desempleo (FUTA)(Form 940-PR)
Type of Information Collection: Revision of a currently approved collection	Common Form ICR: No
Type of Review Request: Regular
OIRA Conclusion Action: Preapproved	Conclusion Date: 11/03/2011
	Date Received in OIRA: 09/12/2011
Terms of Clearance: Pre-approval contingent upon no substantive changes to this collection after adoption of the final rule. Otherwise this collection should be re-submitted to OMB for review.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	11/30/2014	03/31/2013	01/31/2014
Responses	7,000,920	0	6,994,920
Time Burden (Hours)	105,295,370	0	105,216,730
Cost Burden (Dollars)	0	0	0

Abstract: IRC section 3301 imposes a tax on employees based on the first $7,000 of taxable annual wages paid to each employee. IRS uses the information reported on Forms 940 and 940-PR (Puerto Rico) to ensure that employers have reported and figured the correct FUTA Wages and tax.

Authorizing Statute(s): US Code: 26 USC 3301 Name of Law: Rate of tax
   US Code: 26 USC 3302 Name of Law: Credits against tax
   US Code: 26 USC 6103 Name of Law: Confidentiality and disclosure of returns and return information
   US Code: 26 USC 3504 Name of Law: Acts to be performed by agent

Citations for New Statutory Requirements: None

Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1545-BI21	Proposed rulemaking	75 FR 1735	01/13/2010

Federal Register Notices & Comments
Did the Agency receive public comments on this ICR? No

ICR Summary of Burden

	Total Request	Previously Approved	Change Due to Agency Discretion
Annual Number of Responses	7,000,920	6,994,920	6,000
Annual Time Burden (Hours)	105,295,370	105,216,730	78,640
Annual Cost Burden (Dollars)	0	0	0

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

Burden Increase Due to: Changing Regulations

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

Burden Reduction Due to: Changing Forms

Short Statement: IRS uses the information reported on Forms 940 and 940-PR (Puerto Rico) to ensure that employers have reported and figured the correct FUTA Wages and tax. New form Schedule R is being developed for aggregate filers of Form 940 for the following reason: The proposed regs stated above would amend the employment tax regs under section 3504 so that a third party whom the IRS has authorized to act as an agent for service recipients for withholding and FICA tax purposes may also act as an agent regarding FUTA taxes imposed on wages paid for home care services. The proposed regs define "home care service recipient" as an individual who is enrolled in a program administered by a federal, state, or local government agency that provides federal, state, or local government funds to pay, in whole or in part, for the provision of home care services, as defined in the proposed regs. The agent may report on its aggregate FUTA tax return the state unemployment contributions paid into a state unemployment fund on the service recipient's behalf as a credit under section 3302 against the FUTA tax. New Schedule R (Form 940) and its continuation sheet are created to identify the clients by EIN and allocate the clients' federal income tax withholding amounts being reported on the agent's aggregate Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Agents will be required to attach Schedule R (Form 940) and any continuation sheets to Form 940 calendar year 2011. The Small Business/Self-Employed (SB/SE), Specialty Programs, within the IRS, requested the creation of Schedule R (Form) to assist with the SB/SE Compliance Program. The creation of this new Schedule R (940) will result in an increase in the estimated number of responses by 7,000 and an increase in the total estimated burden by 79,380 hours. Also, The over-the-counter payment voucher for Form 940-PR has been removed as these payments are not filed through the Form 940PR-V; this will result in an estimated burden decrease of 1,000 responses and 740 hours. Total program changes will increase the responses by 6,000 and the burden hours by 78,640, for a total of 105,295,370 hours requested.

Annual Cost to Federal Government: $11,443

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

Agency Contact: Yvette Lawrence 202 622-3776

View ICR - OIRA Conclusion