Notices. Notice
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/register/2024/12/19/2024-30074·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
BILLING CODE 4810-25-P DEPARTMENT OF THE TREASURY Revision of Information Collection Request Submitted for Public Comment; Comment Request on Burden Related to U.S. Income Tax Return Forms for Individual Taxpayers AGENCY: Departmental Offices, U.S. Department of the Treasury. ACTION: Notice. SUMMARY: The Internal Revenue Service, as part of its continuing effort to reduce paperwork and respondent burden, invites the 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.
Currently, the IRS is soliciting comments concerning the burden associated with the U.S. Income Tax Return Forms for Individual Taxpayers. DATES: Comments should be received on or before January 21, 2025 to be assured of consideration. ADDRESSES: Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to *www.reginfo.gov/public/do/PRAMain.* Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
FOR FURTHER INFORMATION CONTACT: Copies of the submissions may be obtained from Melody Braswell by emailing *PRA@treasury.gov,* calling
(202)622-1035, or viewing the entire information collection request at *www.reginfo.gov.* SUPPLEMENTARY INFORMATION: Internal Revenue Service
(IRS)*Title:* U.S. Income Tax Return for Individual Taxpayers. *OMB Number:* 1545-0074. *Form Numbers:* Form 1040 and affiliated return forms. *Abstract:* IRC sections 6011 & 6012 of the Internal Revenue Code require individuals to prepare and file income tax returns annually. These forms and related schedules are used by individuals to report their income subject to tax and compute their correct tax liability. This information collection request
(ICR)covers the actual reporting burden associated with preparing and submitting the prescribed return forms, by individuals required to file Form 1040 and any of its affiliated forms as explained in the attached table. *Current Actions:* There have also been changes in regulatory guidance related to various forms approved under this approval package during the past year. There have been additions and removals of forms included in this approval package. In filing season 2025, the Internal Revenue Service
(IRS)will continue to employ its free direct e-file tax return system (Direct File) as an optional service available to taxpayers with supported tax situations. *Type of Review:* Revision of a currently approved collection. *Affected Public:* Individuals or Households, Farms. *Estimated Number of Respondents:* 168,800,000. *Estimated Time per Respondent (Hours):* 12 hrs. 37 mins. *Estimated Total Annual Time (Hours):* 2,129,000,000. *Estimated Total Annual Monetized Time ($):* 44,997,000,000. *Estimated Out-of-Pockets Costs ($):* 48,683,000,000. *Estimated Total Monetized Burden ($):* 93,680,000,000. Note: Total Monetized Burden = Total Out-of-Pocket Costs + Total Annual Monetized Time. Tax Compliance Burden Tax compliance burden is defined as the time and money taxpayers spend to comply with their tax filing responsibilities. Time-related activities include recordkeeping, tax planning, gathering tax materials, learning about the law and what you need to do, and completing and submitting the return. Out-of-pocket costs include expenses such as purchasing tax software, paying a third-party preparer, and printing and postage. Tax compliance burden does not include a taxpayer's tax liability, economic inefficiencies caused by sub-optimal choices related to tax deductions or credits, or psychological costs. Table 1—Fiscal Year 2025 Estimated Average Taxpayer Burden for Individuals Filing a 1040 by Activity Primary form filed or type of taxpayer Percentage of returns Time burden Average time burden (hours) Total time Recordkeeping Tax planning Form completion and submission All other Money burden Average cost (dollars) Total monetized burden (dollars) All Taxpayers 100 13 5 3 4 1 $290 $560 Type of Taxpayer: Nonbusiness * 71 8 3 1 3 1 160 310 Business * 29 24 11 5 6 2 620 1,170 Note: Detail may not add to total due to rounding. Dollars rounded to the nearest $10. *A “business” filer files one or more of the following with Form 1040: Schedule C, E, F, or Form 2106. A “nonbusiness” filer does not file any of these schedules or forms with Form 1040. Source: IRS:RAAS:KDA:TBL (11-25-2024). Table 2—Fiscal Year 2025 Taxpayer Burden Statistics by Total Positive Income Quintile Total positive income quintiles Average time (hours) Average out-of-pocket costs Average total monetized burden All Filers 0 to 20 7.8 $80 $146 20 to 40 10.9 128 242 40 to 60 11.6 165 327 60 to 80 13.1 232 480 80 to 100 22.7 726 1,497 Wage and Investment Filers 0 to 20 6.9 71 129 20 to 40 9.3 112 212 40 to 60 9.0 139 277 60 to 80 9.1 185 384 80 to 100 10.8 322 737 Self Employed Filers 0 to 20 11.9 125 225 20 to 40 18.5 204 379 40 to 60 21.0 258 507 60 to 80 22.0 338 697 80 to 100 33.1 1,077 2,155 Source IRS:RAAS:KDA:TBL (11-25-2024). (Authority: 44 U.S.C. 3501 *et seq.* ) Melody Braswell, Treasury PRA Clearance Officer. [FR Doc. 2024-30074 Filed 12-18-24; 8:45 am]
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