81 FR 23551 - Proposed Collection; Comment Request for Form 14420

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 81, Issue 77 (April 21, 2016)

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.

[Federal Register Volume 81, Number 77 (Thursday, April 21, 2016)]
[Notices]
[Pages 23551-23552]
From the Federal Register Online  [www.thefederalregister.org]
[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