Overview
Title
Proposed Collection; Comment Request for Form 5495.
Agencies
ELI5 AI
The IRS is asking people to share their thoughts about a form called Form 5495, which helps certain people handle tax responsibilities without getting in trouble. They want to make sure filling out this form is easy and doesn’t take too much time, so they’re looking for ideas on how to make it better.
Summary AI
The Internal Revenue Service (IRS) is seeking public comments on the renewal of Form 5495, which is used by executors or fiduciaries to request release from personal liability under specific tax code sections after filing certain tax returns. The IRS aims to reduce paperwork and respondent burden, and invites feedback on the necessity, accuracy, and suggestions for improving the information collection. Comments are also welcomed on methods to reduce the burden through technology or to discuss cost estimates related to the information collection process. Feedback must be submitted by June 20, 2025, to be considered.
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 request for discharge from personal liability under Internal Revenue Code Section 2204 or 6905.
Keywords AI
Sources
AnalysisAI
The document from the Federal Register seeks public feedback on the renewal of Form 5495, facilitated by the Internal Revenue Service (IRS). This form allows executors of estates or fiduciaries of decedent's trusts to request discharge from personal liability after the filing of relevant tax returns, as stipulated under specific tax code sections. The IRS's effort is part of a broader initiative to reduce paperwork and lessen the burden on respondents, and public comments are encouraged to help achieve this goal. Feedback must be submitted by June 20, 2025, to be considered in the review process.
General Summary
The document is an announcement from the IRS, under the Treasury Department, calling for comments from the general public as well as other federal agencies. It is a routine step as part of compliance with the Paperwork Reduction Act of 1995, which mandates the IRS to ensure that its information collection does not impose unnecessary burden. The submission of comments is invited on many aspects, including the necessity of the form, the accuracy of burden estimates, and ways to enhance the quality and efficiency of the information collection.
Significant Issues and Concerns
One significant concern is the lack of transparency regarding the potential costs associated with submitting Form 5495. For individuals or entities required to fill out this form, understanding any financial implications is important for candid feedback. Similarly, the complexity of the form could pose a challenge to some individuals, yet there is no mention of support mechanisms for those who may struggle with its completion.
The document provides an estimate for the time burden per respondent, calculated to be 12 hours and 16 minutes, but it does not explain the specific factors or processes that contribute to this time estimate. This lack of clarity could make it difficult for respondents to assess the IRS's time burden estimation and contest it if necessary.
Moreover, the announcement does not communicate any specific assurances regarding how public comments will be integrated into the IRS's decision-making. This oversight may raise doubts about the meaningfulness of the feedback process. There is also no indication of how the IRS intends to use the feedback to make improvements to the form or the processes surrounding it.
Impact on the Public and Stakeholders
Broadly, the call for comments represents an opportunity for the public to influence IRS processes and ensure that regulatory compliance does not become unnecessarily cumbersome. Citizens and organizations directly dealing with estate matters and fiduciary responsibilities may find the form particularly relevant. However, it is crucial for these stakeholders to feel confident that their feedback will translate into actual improvements.
For individuals who manage estates, the burden of completing the form is significant, given the estimated time and complexity involved. If the IRS incorporates suggestions to simplify the process or reduce associated costs, it could have a positive impact. However, without clear mechanisms for change outlined in the notice, potential improvements may remain uncertain.
In conclusion, while the IRS’s effort to seek public input is a positive step toward transparency and efficiency, some specific issues concerning process clarity and feedback utilization remain unresolved. These gaps might undermine stakeholder confidence in the process and the potential for genuine change or improvement.
Issues
• The document does not specify what, if any, costs or fees may be associated with the submission of Form 5495, which could be considered an oversight in transparency regarding potential financial burdens for respondents.
• The document does not provide any information on whether there are provisions or assistance available for those unable to complete the form due to its complexity.
• The language regarding 'burden hours' could be clearer—while the total is given, the rationale behind the specific estimate (12 hrs. 16 min. per respondent) is not explained, which may be seen as lacking transparency.
• The document does not detail any specific measures to ensure that comments received by the IRS are actually considered in the decision-making process, which might raise questions about the effectiveness of the request for public input.
• There is no indication of how feedback on the form will be utilized to improve the IRS's processes or the form itself, which might concern stakeholders interested in substantive changes or improvements.