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[Federal Register Volume 89, Number 244 (Thursday, December 19, 2024)]
[Notices]
[Pages 103933-103934]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30074]

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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.

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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 [email protected], 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.

[[Page 103934]]

                          Table 1--Fiscal Year 2025 Estimated Average Taxpayer Burden for Individuals Filing a 1040 by Activity
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             Primary form filed or type of taxpayer                                        Time burden                                 Money burden
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                                                                                   Average time burden (hours)
                                                                -----------------------------------------------------------------                Total
                                                     Percentage                                              Form                   Average    monetized
                                                     of returns                                  Tax      completion                 cost       burden
                                                                  Total time   Recordkeeping   planning      and       All other   (dollars)   (dollars)
                                                                                                          submission
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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
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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
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                                                              Average time   Average  out-of-    Average total
              Total positive income quintiles                    (hours)      pocket  costs    monetized burden
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                                                   All Filers
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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
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                                           Wage and Investment Filers
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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
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                                              Self Employed Filers
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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
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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]
BILLING CODE 4830-01-P
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