Overview
Title
Agency Collection Activities; Comment Request for Online Letter Applications for Pre-Approved Plans
Agencies
ELI5 AI
The IRS wants people to tell them what they think about some forms needed for approving retirement plans. They hope to make the forms easier to understand and use, so it's less work for everyone filling them out.
Summary AI
The Internal Revenue Service (IRS) is seeking comments from the public and other federal agencies about certain forms used for applying for approval of standardized or nonstandardized pre-approved retirement plans. This request is part of an effort to reduce paperwork and respondent burden in compliance with the Paperwork Reduction Act of 1995. The IRS is particularly interested in feedback on the necessity, accuracy, and ways to improve the information collected, as well as methods to reduce the burden on respondents. Public comments are due by May 30, 2025, and all submitted comments will be part of the public record.
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 continuing information collections, as required by the Paperwork Reduction Act of 1995. The IRS is soliciting comments concerning Form 4461, Application for Approval of Standardized or Nonstandardized Pre- Approved Defined Contribution Plans; Form 4461-A, Application for Approval of Master or Prototype or Volume Submitter Defined Benefit Plan; and, Form 4461-B, Application for Approval of Standardized or Nonstandardized Pre-Approval Plans, and Form 4461-C, Application for Approval of Standardized or Nonstandardized 403(b) Pre-Approved Plans.
Keywords AI
Sources
AnalysisAI
The document in question is a notice from the Internal Revenue Service (IRS) published in the Federal Register, inviting public comment on the continued use of certain forms related to pre-approved retirement plans. These forms are used by businesses to apply for approval of standardized or nonstandardized plans, including defined contribution and defined benefit plans, as well as 403(b) plans. The IRS seeks feedback to comply with the Paperwork Reduction Act of 1995, aiming to minimize paperwork and the burden on those who respond.
General Summary
The notice announces that the IRS is soliciting comments on forms used for retirement plan approvals, specifically Forms 4461, 4461-A, 4461-B, and 4461-C. It provides information on how interested parties can submit comments by a specified date—May 30, 2025. The IRS is interested in comments on the necessity and utility of the information collected, as well as suggestions for minimizing respondent burden and improving data clarity and quality.
Significant Issues and Concerns
The document presents several potential issues:
Repetitiveness: The abstract tends to repeat similar information about the forms without adding clarity, which might confuse or disengage potential commenters.
Lack of Details: There is no specific information about the anticipated benefits or changes expected from continuing this information collection. The absence of this detail may cause concern about implicit or underlying purposes.
Complex Language: The language could be more accessible, especially for stakeholders who might not be familiar with IRS procedures or terminology, such as small business owners.
Information Overload: The document is dense with information, potentially overwhelming respondents who do not have prior knowledge of IRS forms and procedures.
Transparency Issues: The IRS does not mention how it intends to use the feedback received or if previous input has led to changes. Including such information could enhance transparency and public trust.
Unclear Burden Estimates: The notice does not explain how the burden estimates were calculated, which could lead to questions regarding their accuracy and reliability.
Impact on the Public
For the general public, especially businesses considering applying for retirement plan approval, this document represents an opportunity to influence IRS procedures and reduce bureaucratic paperwork. However, the technical nature of the notice might deter those less versed in IRS jargon from participating in the commentary process.
Impact on Specific Stakeholders
Businesses and Plan Providers: This notice directly impacts them by potentially refining forms and procedures to make them more user-friendly. Positive changes could incentivize more businesses to establish approved plans, thus broadening available retirement options for employees.
Small Businesses: They might find the current document’s complexity daunting, highlighting the need for simplification and clarity, so they aren't deterred from participating in the retirement plan approval process.
Federal Agencies and Policymakers: The feedback could inform broader policy considerations regarding how government interacts with businesses and the public in managing tax-related paperwork, especially concerning retirement savings.
In summary, while the IRS's notice is a necessary step in regulatory compliance, clearer communication and a more inclusive outreach strategy could improve public engagement and the collection of constructive feedback.
Issues
• The abstract is repetitive, stating similar information about the forms multiple times without adding clarity.
• The document fails to provide explicit details on the specific benefits or changes expected from extending the information collection, which might raise concerns about implicit purposes.
• The language could be more user-friendly, especially for small business applicants who might not be familiar with IRS procedures or terminology.
• The document is dense with information—potential respondents may find it overwhelming if they do not have prior knowledge of IRS forms and procedures.
• There is no discussion of how the IRS plans to use any feedback received or if previous feedback has led to changes, which could improve transparency and trust.
• No information is provided on how the burden estimates were calculated, which may raise questions about their accuracy.