SECTION 6. PAPERWORK

REDUCTION ACT

.01 This revenue procedure provides procedures by which taxpayers described in section 3.01 or 3.02 of this revenue procedure are eligible for the safe harbor provided in section 4 of this revenue procedure. Taxpayers taking advantage of this revenue procedure must file a statement as described in section 4.04 of this revenue procedure with their income tax return or information return. The collection of information will be associated with the income tax returns or information statements to which the statement will be attached. That collection of information has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545–0123 for business filers (https://www.federalregister.gov/ documents/2018/10/09/2018-21846/proposed-collection-comment-request-forforms-1065-1065-b-1066-1120-1120-c1120-f-1120-h-1120-nd) and 1545-074 for individual filers (https://www.reginfo.gov/public/do/PRAViewICR?ref_ nbr=201808-1545-031).

.02 This information is required to be collected and retained for compliance pur

poses, namely, to determine whether the taxpayer has made a decision to use the safe harbor, to determine that the amount claimed on the return is correct, and to ensure that any future action that is inconsistent with the decision to use the safe harbor is handled correctly, potentially by application of equitable estoppel and/or the doctrine of consistency.

.03 The Treasury Department and the IRS estimate that the maximum number of respondents would be 5,212,128. This number was determined by examining the PPP data for the total number of approved covered loans. See https://www. sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program?utm_medium=email&utm_ source=govdelivery#section-header-11. This data is currently correct through August 8, 2020. Because some taxpayers will not decide to use the safe harbor in this revenue procedure, the number of estimated respondents is on the high end of the estimate.

.04 The maximum estimated number of respondents is 5,212,128. The estimated annual burden per respondent/recordkeeper varies from 0 to 30 minutes, depending on individual circumstances, with an estimated average of 15 minutes. The estimated total annual reporting and/ or recordkeeping burden is 1,303,032 hours (5,212,128 respondents * 15 minutes). The estimated annual cost burden to respondents is $95 per hour. Accordingly, we expect the total annual cost burden for the statements to be $123,788,040 (5,212,128 * 0.25 * $95). The estimated annual frequency of responses is once because the statement only has to be filed once.