SUPPORTING STATEMENT
Internal Revenue Service (IRS)
Failure of Employer to Make Comparable Health Savings
Account Contributions
OMB Control No. 1545-2146
CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
This collection covers final regulations providing guidance on employer comparable contributions to Health Savings Accounts (HSAs) under section 4980G of the Internal Revenue Code (Code) as amended by sections 302,
305 and 306 of the Tax Relief and Health Care Act of 2006 (the Act). The final
regulations also provide guidance relating to the manner and method of reporting and paying the excise tax under sections 4980B, 4980D, 4980E, and 4980G of the Code.
Under section 4980G, an excise tax is imposed on an employer that fails to
make comparable contributions to the HSAs of its employees. Regulations section 54.6011-2 explains that any person liable for tax under section 4980B,
4980D, 4980E, or 4980G of the Code shall file a return with respect to the tax on Form 8928.
Group health plans or employers file this form to report the tax due on the following failures.
A failure to provide a level of coverage of the costs of pediatric vaccines (as defined in section 2612 of the Public Health Services Act) that is not below the coverage provided as of May 1, 1993.
A failure to satisfy continuation coverage requirements under section 4980B.
A failure to meet portability, access, renewability, and market reform requirements under sections 9801, 9802, 9803, 9811, 9812, 9813, and 9815.
A failure to make comparable Archer MSA contributions under section 4980E.
A failure to make comparable health savings account (HSA) contributions under section 4980G.
USE OF DATA
The information will be used for payment and reporting of the excise taxes under section 4980B, 4980D, 4980E and 4980G. IRS uses the information collected on Form 8928 to ensure the correct amount of tax has been paid.
USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
There are no plans to provide electronic filing because electronic filing is not appropriate for the collection of information due to the accompanying of schedules, statements or payments filed with the return. You can use certain private delivery services designated by IRS to meet the *timely mailing as timely filing/paying* rule for tax returns and payments.
EFFORTS TO IDENTIFY DUPLICATION
The information obtained through this collection is unique and is not already available for use or adaptation from another source.
METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
There is no burden on small businesses or entities by this collection due to the inapplicability of the authorizing statute § 54.6011-2 required to this type of entity.
CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES
Less frequent collection on federal programs and policy activities would result in the IRS inability to report and collect excise tax payments under sections 4980B, 4980D, 4980E or 4980G; thereby endangering the IRS to meet its mission Therefore, reporting of excise tax would not be made timely.
SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
There are no special circumstances requiring data collection to be inconsistent with guidelines in 5CFR 1320.5(d)(2).
CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS
Periodic meetings are held between IRS personnel and representatives of the American Bar Association, the National Society of Public Accountants, the American Institute of Certified Public Accountants, and other professional groups to discuss tax law and tax forms. During these meetings, there is an opportunity for those attending to make comments regarding Form 8928.
In response to the Federal Register notice dated October 10, 2024, (89 FR 82302), we received no comments during the comment period regarding Form 8928.
EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
No payment or gifts are being provided to respondents.
ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returns and tax return information are confidential as required by 26 USC 6103.
JUSTIFICATION OF SENSITIVE QUESTIONS
A privacy impact assessment (PIA) has been conducted for information collected under this request as part of the “Returns Inventory and Classification System (RICS)” and a Privacy Act System of Records notice (SORN) has been issued for this system under IRS 24.046 BMF Business Master File and IRS 34.037 IRS Audit trail and Security Records System. The Internal Revenue Service’s PIAs can be found at https://www.irs.gov/uac/Privacy-Impact-Assessments-PIA.
Title 26 USC 6109 requires inclusion of identifying numbers in returns, statements, or other documents for securing proper identification of persons required to make such returns, statements, or documents and is the authority for social security numbers (SSNs) in IRS systems.
ESTIMATED BURDEN OF INFORMATION COLLECTION
The collection of information in these final regulations is in §54.6011-2. The collections of information results from the requirement to file a return for the payment of the excise tax under section 4980B, 4980D, 4980E, or 4980G of the Code.
The Form 8928 is used for payment of the section 4980B excise tax, as well as other excise taxes under chapter 43.
Authorities |
Description |
# of Respondents |
#Responses per Respondent |
Annual Response |
Hours per Response |
Total Burden |
IRC- 4980B, 4980D, 4980E, and 4980G |
Form 8928 |
68 |
1 |
68 |
23 hrs., 29 min. |
1,597 |
Totals |
|
68 |
|
68 |
|
1,597 |
ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
From our Federal Register notice dated October 10, 2024, no public comments were received on the estimates of cost burden that are not captured in the estimates of burden hours, i.e., estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. As a result, estimates of these cost burdens are considered nominal.
ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
The Federal government cost estimate is based on a model that considers the following three cost factors for each information product: aggregate labor costs for development, including annualized startup expenses, operating and maintenance expenses, and distribution of the product that collects the information.
The government computes cost using a multi-step process. First, the government creates a weighted factor for the level of effort to create each information collection product based on variables such as complexity, number of pages, type of product and frequency of revision. Second, the total costs associated with developing the product such as labor cost, and operating expenses associated with the downstream impact such as support functions, are added together to obtain the aggregated total cost. Then, the aggregated total cost and factor are multiplied together to obtain the aggregated cost per product. Lastly, the aggregated cost per product is added to the cost of shipping and printing each product to IRS offices, National Distribution Center, libraries, and other outlets. The result is the Government cost estimate per product.
The government cost estimate for this collection is summarized in the table below.
REASONS FOR CHANGE IN BURDEN
There are no changes to the burden previously approved.
|
Requested |
Program Change Due to New Statute |
Program Change Due to Agency Discretion |
Change Due to Adjustment in Agency Estimate |
Change Due to Potential Violation of the PRA |
Previously Approved |
Annual Number of Responses for this IC |
68 |
0 |
0 |
0 |
0 |
68 |
Annual IC Time Burden (Hours) |
1,597 |
0 |
0 |
0 |
0 |
1,597 |
IRS is making this submission to renew the OMB approval.
PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
There no plans for tabulation, statistical analysis, and publication.
REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
IRS believes that displaying the OMB expiration date is inappropriate because it could cause confusion by leading taxpayers to believe that the collections sunset as of the expiration date. Taxpayers are not likely to be aware that the IRS intends to request renewal of the OMB approval and obtain a new expiration date before the old one expires.
EXCEPTIONS TO THE CERTIFICATION STATEMENT
There is no exception to the certification statement.
| File Type | application/vnd.openxmlformats-officedocument.wordprocessingml.document |
| Author | J11FB |
| File Modified | 0000-00-00 |
| File Created | 2025-05-24 |