IRS Oversight Board Wants e-Filing Goal Extended to 2011

The Internal Revenue Service (IRS) Oversight Board released its Electronic Filing Annual Report to Congress on Monday and acknowledged that the IRS will not meet the goal of 80 percent of all returns filed electronically mandated by the IRS Restructuring and Reform Act of 1998. The Board credited the 2007 deadline with pushing the IRS to increase the number of taxpayers who e-file their returns to 52 percent in 2005, and projects, based on their analysis of current trends, that four out of five taxpayers will file electronically by 2011. The Board recommends that the target of 80 percent be kept, but that the target date be extended to 2011.


Advertisement


Thousands of executives with financial reporting responsibilities use the Comperio on-line library to access the type of information and interpretive guidance PricewaterhouseCoopers' own professional audit staff use around the world. Key content areas include guidance from the FASB, EITF, PCAOB, SEC, and others as well as PwC's interpretive guidance. Get more information and sign up for a complimentary 30-day trial.


The IRS Oversight Board Electronic Filing Annual Report to Congress available at www.irsoversightboard.treas.gov uses recommendations made in the Electronic Tax Advisory Committee’s (ETAAC’s) annual report released late last year as a foundation for its broad recommendations, noting that it regards the ETAAC as an expert resource and does not wish to duplicate its effort.

The ETAAC’s 2005 report presented a vision “where electronic tax administration acts as the primary mechanism for transforming the IRS and how it serves taxpayers,” the Oversight Boars’ report says. The ETAAC identified three issues that must be addressed by the IRS to build a system to meet the needs of all taxpayers:

  • There must be easy, secure access to the system for all stakeholders. They must be assured their data is “secure and that access is limited to those authorized to view the information.”
  • The IRS and each state jurisdiction must work with software providers so as to provide a “seamlessly integrated experience for each taxpayer to file, pay, store and retrieve information.”
  • All transactions associated with filing, paying, storing and retrieving data . . . must be electronic.

The Oversight Board Annual Report supports the ETAAC’s vision in the first two issues, noting that there may be a correlation between those states mandating e-filing and the growth in federal e-filed returns, but recommends that the third goal be re-evaluated because some taxpayers may not have computer literacy or access to computers and may not be able accomplish e-filing.

The Board also stressed that the IRS must make solid progress in replacing the IRS legacy master file system and move taxpayer records to the modern reliable database called the Customer Account Data Engine (CADE).

The ETAAC report identified three areas it considers barriers to full acceptance of e-filing including:

  • The IRS’ legacy system.
  • E-pay. It must be faster than paying by check. Sign-up for the Electronic Federal Tax Payment System should be instantaneous.
  • E-services should be “faster, easier and more efficient that paper, telephone or fax-based communications.”

The Oversight Board recommended a review of the ETAAC’s IRS Legacy system position but supports their suggestions for e-pay and e-services.

You may like these other stories...

If you're thinking that bitcoin and digital currency generally are merely some one-off flash in the pan, the new Digital Currency Council would argue otherwise. The council launched in September and already had 400...
Sponsored Content from Confirmation.com: AccountingWEB takes a look at confirmations in audit engagements, how they can serve as a doorway to fraud, and what you can do about it. Today, auditors have to fight fire with...
If your small-business clients are on the fence about cloud accounting, they've got plenty of company. A recent survey by market researcher and consultant Software Advice indicates a decidedly mixed view by respondents...

Already a member? log in here.

Upcoming CPE Webinars

Oct 22This webinar will include discussions of important issues in AU-C 800, Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.
Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.