[Federal Register Volume 61, Number 101 (Thursday, May 23, 1996)]
[Notices]
[Pages 25937-25938]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13032]



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DEPARTMENT OF THE TREASURY
Internal Revenue Service


Proposed Collection; Comment Request for Form 1040

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, P.L. 104-13 (44 U.S.C. 
3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning 
revisions to Form 1040, U.S. Individual Income Tax Return, and 
Schedules C, EIC, and F.

DATES: Written comments should be received on or before July 22, 1996 
to be assured of consideration.

ADDRESSES: Direct all written comments to Garrick R. Shear, Internal 
Revenue Service, room 5571, 1111 Constitution Avenue NW., Washington, 
DC 20224.

FOR FURTHER INFORMATION CONTACT: Requests for additional 
information or copies of the information collection should be 
directed to Martha R. Brinson, (202) 622-3869, Internal Revenue 
Service, room 5571, 1111 Constitution Avenue NW., Washington, DC 
20224.

SUPPLEMENTARY INFORMATION:
    Title: U.S. Individual Income Tax Return.
    OMB Number: 1545-0074.
    Form Number: 1040.
    Abstract: Form 1040 and its schedules are used by individuals to 
report their income subject to tax and compute their correct tax 
liability. The information is used to verify that the items reported on 
the forms and schedules are correct, and is also for general 
statistical use.
    Current Actions:
Changes to Form 1040
    1. Lines 60b, c, and d, requesting direct deposit information, were 
added to page 2. This will increase the number of taxpayers electing 
direct deposit, and relieve taxpayers from the burden of having to 
attach Form 8888, Direct Deposit of Refund. Form 8888 will become 
obsolete.
    2. Line 33b, which had indicated that the taxpayer could be claimed 
as a dependent on someone else's return, was deleted to make room for 
the direct deposit information.
    3. Line 38 was revised and lines 39 and 40 were deleted. In 
addition to making room for the direct deposit lines, this change 
reduces taxpayer burden by removing checkboxes and entry spaces.
    4. Line 62b was added to facilitate processing of returns when 
payment is made using Form 1040-V.
    5. Line 49, recapture taxes, was deleted due to low usage. Those 
taxes are now reported on line 51, total tax.
    6. Most of the page references to the instructions were deleted 
because information will not be on the same pages in the instructions 
sent to some taxpayers. Instead, page references are indicated on pages 
2 and 3 of the instructions.
    7. The checkbox on line 52, indicating Form 1099 Federal Income Tax 
Withheld was included on that line, was deleted to reduce taxpayer 
burden.
    8. The exemption area on Form 1040, page 1, was revised to reduce 
taxpayer burden. Columns 3 and 4 on line 6c, which were for the 
dependent's relationship, and the number of months lived in the 
taxpayer's home, were deleted. Line 6c, column 2, was revised to 
reflect section 742(c)(2)(B) of PL 103-465 which, for 1996, exempts 
taxpayers who have a dependent born after November 30, 1996, from the 
requirement to report the dependent's social security number. The entry 
spaces to the right of line 6c were revised and line 6d, which dealt 
with pre-1985 custody agreements, was deleted.
Changes to Schedule C
    Questions G and H that were on page 1 of the 1995 schedule were 
moved to Part III, Cost of Goods Sold (new lines 33 and 34) and the 
remaining questions were relettered. This will reduce taxpayer burden 
because only those taxpayers with inventory will have to consider these 
questions.
Changes to Schedule EIC
    The line 4 text on page 2 was revised to reflect section 
742(c)(2)(B) of Pub. L. 103-465 which, for 1996, exempts taxpayers 
claiming the EIC from reporting a social security number for an 
individual born after November 30, 1996. Changes to Schedule F
    Line 14 was revised by deleting ``Attach Form 8645'' and adding 
``(see page F-4).'' Form 8645 will be obsolete for 1996. The 
instructions for line 14 were expanded to explain that an approved 
conservation plan is required to take this deduction.
    The instructions will be revised to reflect the changes made to 
Form 1040 and its schedules.
    Type of Review: Extension of a currently approved collection.
    Affected Public: Individuals or households.
    Estimated Number of Respondents: 66,244,569.
    Estimated Time Per Respondent: Varies.
    Estimated Total Annual Burden Hours: 1,128,204,754.

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; and (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.


[[Page 25938]]


    Approved: May 15, 1996.
Garrick R. Shear,
IRS Reports Clearance Officer.
[FR Doc. 96-13032 Filed 5-22-96; 8:45 am]
BILLING CODE 4830-01-U