Overview
Title
Proposed Collection; Requesting Comments on Form 8850
Agencies
ELI5 AI
The IRS wants to hear what people think about a special form called Form 8850 that helps businesses get a tax credit for hiring certain employees. They hope to make filling out the form easier and ask people to share their ideas by April.
Summary AI
The Internal Revenue Service (IRS) is seeking comments on Form 8850 as part of its effort to reduce paperwork and the burden on respondents, in line with the Paperwork Reduction Act of 1995. This form, used by employers, helps to certify employees from targeted groups for the Work Opportunity Credit. The deadline for submitting written comments is April 28, 2025. Interested parties can direct their comments to Andres Garcia at the IRS, and any submitted feedback will be considered in the request for approval by the Office of Management and Budget (OMB).
Abstract
The Internal Revenue Service, 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. The IRS is soliciting comments concerning Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit.
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Sources
AnalysisAI
The Federal Register recently published a notice from the Internal Revenue Service (IRS), inviting comments on Form 8850, known as the Pre-Screening Notice and Certification Request for the Work Opportunity Credit. This form is part of the IRS's ongoing effort to reduce paperwork and ease the burden on those who must respond, in compliance with the Paperwork Reduction Act of 1995. The current request seeks public input to improve the process involved in certifying employees from targeted groups, which helps employers qualify for the Work Opportunity Credit.
General Summary
The document outlines the IRS's call for public feedback regarding Form 8850, which employers use to request certification that certain employees are eligible for the Work Opportunity Credit. This credit is a valuable tool for businesses seeking incentives for hiring individuals from specific, targeted groups. The IRS is collecting comments to ensure that this process remains efficient and effective. The deadline for submitting comments is set for April 28, 2025, with all responses directed to Andres Garcia at the IRS.
Significant Issues
Several issues and concerns arise from this notice. Firstly, the document does not indicate any changes since the last iteration of Form 8850, aside from stating that no changes are planned for the current collection. This lack of updates or improvements could pose concerns for individuals or organizations experiencing challenges with the current system.
The document also highlights that the estimated time for completing the form is over seven hours. This could be a considerable burden for businesses, especially smaller entities with limited resources. Additionally, although the notice invites suggestions to minimize this burden, it lacks specific proposals, especially regarding opportunities for automation or technological improvements.
The method by which public comments will be made available remains unclear, raising questions about the transparency and accessibility of these records. Moreover, the notice provides no specific estimates of potential capital costs or operational expenditures related to the information collection process. These considerations are vital for businesses to gauge the financial implications effectively.
Impact on the Public
Broadly, the call for comments has important implications. On one hand, it offers members of the public and businesses an opportunity to participate in shaping the process related to a useful tax credit. This engagement could lead to significant practical improvements that reduce the administrative burden associated with using Form 8850.
Impact on Specific Stakeholders
For businesses, particularly those that might employ members of targeted groups, the effective use of Form 8850 can have significant financial benefits through tax credits. However, the current process's complexity and time demands may dissuade some organizations from participating, especially smaller businesses that cannot spare the time or resources required to complete lengthy documentation.
This notice could potentially have a positive impact by gathering ideas that might reduce complexity and improve overall usability. However, without addressing the noted issues, it also risks maintaining burdens that could hinder stakeholders from fully benefiting from the Work Opportunity Credit.
Ultimately, offering comments on the form could be a crucial step for stakeholders interested in ensuring the form's continued relevance and effectiveness in fostering employment opportunities for targeted groups.
Issues
• The document does not specify if there are any changes or updates from previous versions of Form 8850, except to state that there is no change to the existing collection.
• The document does not provide specific data or examples regarding the practical utility of the Pre-Screening Notice and Certification Request for the Work Opportunity Credit, making it difficult to assess its necessity.
• The estimated time per respondent is 7 hours and 24 minutes, which might be considered burdensome for businesses, particularly small businesses that may lack resources.
• The document could be clearer about ways to minimize the burden of the collection of information, especially in exploring automated collection techniques or other forms of information technology.
• The document mentions that comments will become a matter of public record but does not clearly outline how or where these records will be accessed by the public.
• The document does not provide specific estimates for capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information, which could be crucial for businesses to understand potential financial impacts.