Overview
Title
Agency Information Collection Activities; Submission for OMB Review; Comment Request; Internal Revenue Service Request for the Annual Return/Report of Employee Benefit Plan
Agencies
ELI5 AI
The Treasury Department wants to make sure that businesses are doing a good job taking care of their employees' retirement plans and they're asking people to tell them what they think about it. They have to keep checking things to make sure everything is right, and they're trying to make it easier for everyone to understand how this works.
Summary AI
The Department of the Treasury is submitting information collection requests to the Office of Management and Budget (OMB) for review, in line with the Paperwork Reduction Act of 1995. This involves the Internal Revenue Service's (IRS) Annual Return/Report of Employee Benefit Plan, which is used to check if retirement plans meet the required standards or need auditing. They are inviting public comments on these requests until February 5, 2021. The information collection affects businesses, individuals, and non-profits, with an estimated 929,000 responses expected annually and a total burden of approximately 934,830 hours.
Abstract
The Department of the Treasury will submit the following information collection requests to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995, on or after the date of publication of this notice. The public is invited to submit comments on these requests.
Keywords AI
Sources
AnalysisAI
The document under review, titled "Agency Information Collection Activities; Submission for OMB Review; Comment Request; Internal Revenue Service Request for the Annual Return/Report of Employee Benefit Plan," was published by the Department of the Treasury. It announces the submission of information collection requests to the Office of Management and Budget (OMB) for review, in compliance with the Paperwork Reduction Act of 1995.
General Summary
This notice specifically pertains to the Internal Revenue Service's (IRS) Annual Return/Report of Employee Benefit Plan. This annual return is critical for verifying whether retirement plans meet the standards required under the Internal Revenue Code and whether they should be audited for compliance. The document also invites public comments until February 5, 2021, on these reporting requirements, which are expected to involve an estimated 929,000 responses annually, accounting for a total burden of approximately 934,830 hours.
Significant Issues and Concerns
One of the notable concerns with this document is the lack of clarity around the revisions introduced for the Annual Return/Report of Employee Benefit Plan. While the notice mentions eliminating Form 5500-SUP and adding checkboxes to existing forms like Form 5500, 5500-SF, and Form 5500-EZ, it fails to clearly explain the necessity and implications of these revisions, especially in the context of the SECURE Act. This oversight could result in confusion among stakeholders trying to understand these procedural changes.
Furthermore, the language used in the description section could be simplified. Without clear, accessible language, some stakeholders may struggle to grasp the full extent of the changes and their potential consequences. Additionally, the document does not thoroughly assess the potential impact on respondents, such as changes in compliance costs or the procedural modifications that might be required. Lastly, the notice lacks a detailed explanation of how the estimated total annual burden hours were determined. This omission could lead to skepticism regarding these estimates' accuracy.
Public Impact
Broadly, this document impacts businesses, individuals, and non-profit organizations that are required to submit annual information returns for employee benefit plans. They will have to adjust to the revised reporting requirements and ensure compliance with any new standards introduced.
Stakeholder Impact
For stakeholders specifically involved in managing employee benefit plans, these changes could entail both positive and negative impacts. On the positive side, the introduction of a checkbox for initial plans retroactively adopted as per the SECURE Act signals an effort to streamline the reporting process. This could simplify managing plan adoptions aligned with new legal standards. However, the decision to not release Form 5500-SUP and the lack of detailed rationale or guidance might lead to inefficiencies in understanding and implementing the new requirements. Additionally, stakeholders may incur additional compliance costs if changes demand updated processes or employee training.
In summary, while the document aims to refine compliance and reporting requirements, it would benefit from more precise explanations and impact assessments to better inform the affected public.
Issues
• The document does not clearly explain why revisions to the Annual Return/Report of Employee Benefit Plan are necessary, specifically the decision not to release Form 5500-SUP and the addition of checkboxes to Form 5500, 5500-SF, and Form 5500-EZ.
• The language in the 'Description' section could be simplified to ensure that all stakeholders understand the changes and their implications, especially regarding the SECURE Act's impact on reporting requirements.
• The document does not provide specific information about the potential impact on respondents, such as expected changes in compliance costs or procedural adjustments for the affected public.
• There is a lack of explanation as to how the estimated total annual burden hours were calculated, which could raise concerns about the accuracy of these estimates.