- Form 8881 allows eligible small employers to claim credits under IRC sections 45E, 45T and 45AA.
- No changes are proposed to the existing information collection, which is being extended.
- Written comments must be received by December 7, 2026, to ensure consideration.
Purpose of the Notice
On October 7, 2026, the Internal Revenue Service published a notice in the Federal Register inviting public comments on the continued use of Form 8881, Credit for Small Employer Pension Plan Startup Costs, Auto-Enrollment, and Military Spouse Retirement Plan.
The notice follows requirements of the Paperwork Reduction Act of 1995, allowing the IRS to assess the impact and minimize the burden of its information collections. Comments will help evaluate the form's necessity, accuracy of burden estimates, and potential improvements.
Form 8881 and Eligible Credits
Eligible small employers use Form 8881 to claim tax credits for qualified startup costs in establishing or administering eligible employer plans, employee retirement education, and certain employer contributions under section 45E.
The form also covers credits under section 45T for qualified employer plans that include an eligible automatic contribution arrangement and under section 45AA for defined contribution plans that provide specific benefits to military spouses.
The IRS has made no changes to the previously approved collection, which remains an extension of an existing approval under OMB Control Number 1545-1810.
Who Is Affected
The collection primarily affects business or other for-profit organizations that sponsor qualifying retirement plans.
The IRS estimates 66,667 responses annually, with each requiring an average of 8 hours and 38 minutes to complete, resulting in a total annual burden of 575,337 hours.
How to Submit Comments
Written comments should be received on or before December 7, 2026. They can be mailed to Andres Garcia at the Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 20224, or emailed to [email protected], including OMB Control No. 1545-1810 in the subject line.
The IRS encourages comments on whether the collection is necessary, the accuracy of burden estimates, ways to enhance information quality, methods to reduce respondent burden, and estimates of related costs.
Additional Resources
Draft versions of the form and related information are available at irs.gov/draft-tax-forms. Further details can be obtained by contacting LaNita Van Dyke at 202-317-6009.
Republic Tax Relief provides private tax-resolution services for individuals and businesses facing IRS or state tax issues unrelated to this credit program. Readers with existing tax-debt questions may contact the firm for a free, no-obligation initial consultation to evaluate suitability, scope, fees and availability of help communicating with the IRS.
Announcement covered: Oct 7, 2026.
General information only, not individual tax, legal, or financial advice. Rules, deadlines, and eligibility depend on your circumstances. Check current official guidance or consult a qualified professional.
Request a correction →
