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Issues concerning the IRS management of its initiative to require electronic tax filing of some partnership tax forms are examined, focusing on the larger implications the management poses for IRS technology infrastructure to service the demands it imposes on taxpayers and tax practitioners. Topics include an instance where IRS software problems forced the agency to make an announcement that it would not accept electronic filings of certain tax forms that were required by law to be filed electronically.

Issues concerning the difficulties the IRS faces in meeting its goal of having 80% of tax returns filed electronically by 2007 are examined, focusing on proposals for the IRS to allow free filing of tax returns through its Web site. Topics include the software that would be used for those electronic tax returns, and how IRS software might compete with the private sector; the difference between the complicated task of correctly filling out a tax form and the relatively easy task of electronically transmitting a completed form; and questions regarding how much responsibility the IRS should assume for how a taxpayer completes an electronic form.

Issues concerning IRS efforts to aid tax-exempt organizations in filing their tax forms electronically are examined. Topics include IRS work on procedures to file Form 990 electronically; the manner in which technology improves the IRS ability to review filed tax forms; a free electronic filing software package, Desktop 990, developed by the National Center for Charitable Statistics (NCCS); and a NCCS informational Web site at www.form990.org.

Issues concerning a proposal by Pres George W. Bush that taxpayers be allowed to electronically file their tax returns for free are examined. Topics include oppposition from private industry groups, comments by IRS Commissioner Charles O. Rossotti that the IRS should work with the private sector in providing the service, and comments by IRS Oversight Board Chair Tony Tullo that Bush's proposal may discourage private sector innovation and should not be part of the Bush budget.

Issues concerning proposals by the administration of Pres George W. Bush to offer free IRS tax preparation software over the Web for taxpayers are examined, focusing on the response by private corporations such as H&R Block, Microsoft, and Intuit that offer similar products.

Issues concerning the role of tax preparation services in the marketplace in the context of technological advances in tax preparation and filing are examined, focusing on comments made by H&R Block President Mark Ernst at a May 2001 meeting with the Council for Electronic Revenue Communications Advancement. Topics include the dangers of the IRS competing with the private sector by offering tax preparation software over the IRS Web site and data security for electronic tax filing.

Issues related to IRS goals of having 80% of tax returns filed electronically by 2007 are examined, focusing on a report submitted to Congress by the Electronic Tax Administration Advisory Committee. Topics include incentives the IRS will have to use to meet the goal, electronic filing for businesses, and standards for electronic filing.

The Electronic Tax Administration Advisory Committee will report to Congress on Jun 30, 1999. The Committee has the responsibility of developing a plan to make electronic filing of tax returns the method of choice for taxpayers. Their report will also include a discussion of how small businesses and the self-employed can increase their use of electronic filing.

IRS Commissioner Charles O. Rossotti outlined several reforms he has implemented or supports to reduce taxpayer paperwork at a hearing on government paperwork reform during the week of April 12, 1999. The IRS has improved Form 1040 and the Form 5500 series. The IRS encourages electronic tax filing. It has also aided specific groups, such as small businesses, in their tax administration.

Widespread electronic filing of tax returns is an IRS goal largely due to the administrative costs of processing and storing paper-based tax documents. The IRS has made available to individuals, businesses, and estates and trusts telephone-based or electronic mail-based tax-filing options. Special record retention rules and procedures must be followed.

Members of the Electronic Tax Administration Advisory Committee met during the week of Nov 30, 1998, to discuss how to increase the amount of tax returns that are filed electronically for the IRS. The Committee is scheduled to meet four times a year and for two days at each meeting. Anita Horn, a Senate Finance Committee minority tax staff member, suggested the Committee should act like a system of checks and balances on the electronic procedures IRS will introduce. Implementation of electronic may follow the same schedule as implementing reorganizational changes at the IRS.

Policies for submitting electronic tax returns differ in the UK and the US, but both countries can learn from the other. The UK requires no signature document, allows explanatory documents to accompany returns, and issues statements of accounts to taxpayers. UK taxpayers, whether or not they file electronically, are also allowed to prepare a return during ten months of the fiscal year. The US system of automatically verifying tax returns could be a significant contribution to the UK system.

IRS assistant commissioner for electronic tax administration Robert E. Barr stated Oct 15, 1998 the IRS has a five-year strategy for continuing to implement electronic filing. $1.2 tril was collected electronically in 1998, representing 20% of filers. The IRS will create electronic filing techniques for more IRS forms, will partner with private firms to develop electronic procedures, and aims to have 80% of taxpayers filing electronically by 2007.

The IRS announced during the week of Aug 17, 1998 that federal taxes can be paid with credit cards, and the IRS is developing working relationships with private firms to further the goal of 80% electronic filing by 2007. US Audiotex and NOVUS Services will aid credit card payments that accompany electronic filing. VeriSign Inc. will develop security procedures for electronic filing. Credit card service fees will be paid by taxpayers.

The House Ways and Means Subcommittee on Oversight was disappointed by the IRS officials' contribution to the hearing on the National Commission on Restructuring the IRS's electronic filing proposals. IRS officials did not have any suggestions because they were waiting for a draft requesting proposals from private contractors. Increased electronic filing should be more efficient, accurate and cheaper than paper filing but the IRS opposes any efforts to mandate a participation level. Incentives have been proposed for filers, such as a later filing date, and for transmitters.

The IRS is planning to contract out the management of the controversial Tax Systems Modernization (TSM) program by 1998. According to a Treasury report due to Congress in May 1996, the Service plans to move 70% of the TSM development tasks to TRW, create a TSM management office, and modify the data and imaging processing components. The report acknowledges TSM's problems in responding to General Accounting Office and Congressional criticism. However, the report leaves several TSM issues unresolved and does not address the handling of in-house IRS employees after outsourcing.

IRS officials at a Commissioner's Advisory Group (CAG) meeting reported favorable early 1996 statistics for electronic filing. The rejection rate of electronically filed returns decreased by almost 50% from 1995, when antifraud measures created a high rejection rate. Approximately 689,000 returns were filed through the TeleFile program by Jan. 30, 1996, although non-TeleFile electronic returns decreased slightly. The IRS also received favorable responses to its site on the World Wide Web. The CAG compliance issues subgroup announced a forthcoming report on the coordinated examination program.

The IRS plans to allow taxpayers to file returns using the Internet and other on-line providers starting with the 1996 filing season. FedWorld, a government Internet site managed by the National Technical Information Service, would receive the returns. There will be no filing charges. The move could result in huge reductions in the use of return preparers who file electronically and the refund anticipation loan business of banks.

The IRS is developing seven proposals to increase the amount of electronic filing of tax returns for 1996, but the effort may not succeed. While the IRS expected 20 million electronic tax returns in 1995, only around 11 million were filed. The seven proposals include value added networks for IRS access, priority personal identification numbers for filers, alternatives to authentication and signature requirements, educational marketing, mandatory electronic filing for some categories of taxpayers, awards for firms that file the most returns and mandatory electronic filing of W-2 forms by employers.

The tax software market looks set for a period of rapid change brought about by technological innovations. One important factor spurring change is the development of graphical user interfaces such as Microsoft Windows. While Windows has been around for several years, tax applications using it are only now becoming available. One reason for this is because most vendors have opted to create Windows versions of established tax software packages by completely rethinking their products with a view to improving productivity. Examples of such enhanced and reformulated packages are the Windows versions of packages by TaxSoft, Lotus and Digita. Another important development spurring change in the tax software market is the introduction of Electronic Lodgement by the Inland Revenue, a move that has prompted vendors to introduce self-assessment packages for taxpayers and tax preparers alike.

The advent of computer technology has made it possible to file tax returns electronically. Tax return filing has evolved from using postal services to transmitting electronic data via computer modem. There are actually two additional ways to file a return, which are electronically and on Form 1040PC. However, the IRS urges tax preparers to use electronically filed tax returns because it is more cost effective. These tax returns are also more accurate since errors can be detected automatically., filing a personal income tax return used to mean putting it in an envelope and mailing it to the IRS processing center--first-class mail, return receipt requested. These days, however, other [...]

The IRS campaign to encourage professional tax preparers to file returns electronically seems to have succeeded. In 1994, as a result of the aggressive year-long campaign instituted by the IRS, some 12.9% of all tax returns were filed electronically. This figure, which represents about 13.4 million returns, is expected to grow steadily by an average 13.4% annually until the year 2000 when the IRS hopes to achieve its target of 30.2 million electronically filed tax returns. Electronic filing has proven popular with taxpayers since refunds can be received quickly within two to three weeks., It's not a question of traditional or alternative methods of tax filing anymore. The Internal Revenue Service doesn't even describe electronic filing as 'alternative' anymore, said Joe Langer, treasurer of [...]

It's not a question of traditional or alternative methods of tax filing anymore. The Internal Revenue Service doesn't even describe electronic filing as 'alternative' anymore, said Joe Langer, treasurer of [...]

When electronic filing was introduced in 1986, it was viewed as a convenience for only the most technically savvy practitioners. At the time, most practitioners still prepared tax returns manually [...]

The National Association of Computerized Tax Processors (NACTP) hasn't lost site of its main objective (to bring together the views of the tax processing industry and make tax preparation easier [...]

Zytax ZMS Compliance 5, a fuel-tax filing program, is now in general release, maker Zytax said. The software, which automates the end-to-end motor fuels tax filing process, is available as [...]

Zytax, a wholly owned subsidiary of FuelQuest and a supplier of indirect tax automation software, announced the general availability of Zytax ZMS Compliance 5. This release of its flagship product [...]

Zytax ZMS Compliance 5, a fuel-tax filing program, is now in general release, maker Zytax said. The software, which automates the end-to-end motor fuels tax filing process, is available as [...]