Notice2023-25148
Proposed Collection; Comment Request for Form 8881
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 15, 2023
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
The Internal Revenue Service (IRS), 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 information collections, as required by the Paperwork Reduction Act of 1995. The IRS is soliciting comments concerning the Form 8881-- Credit for Small Employer Pension Plan Startup Costs, Auto-Enrollment, and Military Spouse Retirement Plan, as amended to include changes by the SECURE 2.0 Act.
Full Text
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<title>Federal Register, Volume 88 Issue 219 (Wednesday, November 15, 2023)</title>
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[Federal Register Volume 88, Number 219 (Wednesday, November 15, 2023)]
[Notices]
[Pages 78472-78473]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-25148]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
Proposed Collection; Comment Request for Form 8881
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice and request for comments.
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SUMMARY: The Internal Revenue Service (IRS), 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 information collections, as required by the Paperwork Reduction Act
of 1995. The IRS is soliciting comments concerning the Form 8881--
Credit for Small Employer Pension Plan Startup Costs, Auto-Enrollment,
and Military Spouse Retirement Plan, as amended to include changes by
the SECURE 2.0 Act.
DATES: Written comments should be received on or before January 16,
2024 to be assured of consideration.
ADDRESSES: Direct all written comments to Andres Garcia, Internal
Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC
20224, or by email to <a href="/cdn-cgi/l/email-protection#b2c2c0d39cd1dddfdfd7dcc6c1f2dbc0c19cd5ddc4"><span class="__cf_email__" data-cfemail="aededccf80cdc1c3c3cbc0daddeec7dcdd80c9c1d8">[email protected]</span></a>. Include ``OMB Number 1545-
1810--Form 8881--Credit for Small Employer Pension Plan Startup Costs,
Auto-Enrollment, and Military Spouse Retirement Plan'' in the subject
line of the message.
FOR FURTHER INFORMATION CONTACT: Requests for additional information or
copies of this collection should be directed to Martha R. Brinson, at
(202)317-5753, or at Internal Revenue Service, Room 6526, 1111
Constitution Avenue NW, Washington, DC 20224, or through the internet
at <a href="/cdn-cgi/l/email-protection#c08da1b2b4a8a1ee92ee82b2a9aeb3afae80a9b2b3eea7afb6"><span class="__cf_email__" data-cfemail="89c4e8fbfde1e8a7dba7cbfbe0e7fae6e7c9e0fbfaa7eee6ff">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Title: Credit for Small Employer Pension Plan Startup Costs, Auto-
Enrollment, and Military Spouse Retirement Plan.
OMB Number: 1545-1810.
Form Number: 8881.
Abstract: Qualified small employers use Form 8881 to claim a credit
for start-up costs and auto-enrollment arrangements related to eligible
retirement plans. Form 8881 implements section 45E of the Internal
[[Page 78473]]
Revenue Code (IRC), which provides a credit based on costs incurred by
an employer in establishing or administering an eligible employer plan
or for the retirement-related education of employees with respect to
the plan.
Form 8881 also implements IRC section 45T, which provides a credit
for including an eligible automatic contribution arrangement (as
defined in section 414(w)(3)) in a qualified employer plan sponsored by
the employer. For an eligible employer, the section 45E credit is 50%
of the qualified start-up costs for a tax year, up to $500 for the tax
year in which the plan is established or becomes effective and each of
the two subsequent tax years. For an eligible employer, the section 45T
credit is $500 for the first tax year in which the automatic
contribution arrangement is included in the plan and for each of the
two subsequent tax years.
Current Actions: The Secure 2.0 Act of 2022 added new IRC section
45AA, Military Spouse Retirement Plan Eligibility Credit for Small
Employers. Section 45AA provides a general business tax credit to
eligible small employers who offer defined contribution plans with
specific features that benefit military spouses. The section 45AA
credit is, for a tax year during which a military spouse participates
in the plan, up to 3 tax years beginning with the tax year during which
the military spouse began participating in the plan, $200, plus the
amount of employer contributions (other than elective deferrals) made
on behalf of the military spouse for any of the 3 tax years, up to $300
for a tax year. The Form 8881 is being revised to add the Section 45AA
credit. Additionally, the Secure 2.0 Act amended section 45E to permit
eligible employers, with 1-50 employees, an increased start-up costs
credit of 100% of the qualified start-up costs for a tax year, up to
$500 for the tax year in which the plan is established or becomes
effective and each of the two subsequent tax years. The Secure 2.0 Act
also amended section 45E to permit an additional credit for employer
contributions by certain eligible employers, in an amount equal to an
applicable percentage of eligible employer contributions to a defined
contribution plan, for up to 5 tax years beginning with the tax year in
which the plan is established. The Form 8881 is being revised to
include these additions under section 45E.
Type of Review: Revision of a currently approved collection.
Affected Public: Businesses or other for-profit organizations.
Estimated Number of Respondents: 66,667.
Estimated Time per Respondent: 8 hours, 38 minutes.
Estimated Total Annual Burden Hours: 575,337.
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.
Comments will be 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 has
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 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: November 7, 2023.
Martha R. Brinson,
Tax Analyst.
[FR Doc. 2023-25148 Filed 11-14-23; 8:45 am]
BILLING CODE 4830-01-P
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