IRS e-file
for
Business
Electronic Tax Administration
ETA Modernization
Program Office
Steve Holden
Assistant Commissioner
Electronic Tax Administration
Special Projects
Staff
Robert Barr
EFTPS Marketing
STAWRS
Integrated Product Team (IPT)
Accounts Management
Division
Mark Pursley
National Account Managers
Field Account Managers
Diversified Electronic
Filing Division
Sherrill Fields
Individual Electronic
Filing Division
JoAnn Blank
Employment Tax Returns
Other Business Returns
Alternative Payments
EFTPS
Research and Analysis
Business Marketing
Business Channel Mgmt
Individual Returns
ERO Suitability
Infrastructure
Authentication
Secure Messaging
IMF Marketing
Individual Channel Mgmt
The New Organization Brings Focus on
Business Taxpayers
Commissioner
Deputy Commissioner
Wage & Investment
Serve: 88M Filers
116M Taxpayers
Tax Liability: $380B
Avg # of Transactions w/IRS per filer/year 1-4
% preparing own returns 59%
Small Business/Self Employed
Large & Mid-Size Business
Tax Exempt & Government Entities
Serve: 45M Filers
w/Assets under $5M
Tax Liability: $790B
Serve: 210,000 Filers
w/Assets greater $5M
Tax Liability: $466B
Serve: 2.4M Filers
w/Various Assets
Tax Liability: $103B
Avg. # of Transactions w/IRS per filer/year 4-60
% preparing own returns 20%
Avg. # of Transactions w/IRS per filer/year 60+
1M Retirement Plans w/Assets over $4T
1M Tax Exempt w/Assets over $1.3T
220,000 Bond Issuances valued at $1.3T
86,000 Government Entities and 559 Indian Tribes
Avg. # of Transactions w/IRS per filer/year 60+
Electronic Tax Administration
Diversified Electronic Filing Office
What We Have
940 Mag-Tape
941- EDI e-file, TeleFile, On-Line & Mag-Tape
1041 Mag-Tape
1065 e-file
EFTPS
W-2 (out-sourced to SSA) paper, Mag-Tape & e-file
Business Return e-file Volume
25,000,000
20,000,000
Total Population
15,000,000
1999 Actual
2003 Projections
2007 Projections
10,000,000
80% RRA Goal
5,000,000
0
940
941
Business Return e-file Volume
20,000,000
18,000,000
16,000,000
14,000,000
Total Population
12,000,000
1999 Actual
10,000,000
2003 Projections
8,000,000
2007 Projections
80% RRA Goal
6,000,000
4,000,000
2,000,000
0
1041
1041 Sch
K-1
1065
1065 Sch
K-1
What We Do Not Have
Excise Tax Returns
Form 720 - Quarterly Federal Tax Return
Form 2290 - Heavy Vehicle Use Tax Return
Employment Tax Returns
Form 943 - Employer’s Annual Return for Agricultural Employees
Form 945 - Annual Return of Withheld Federal Income Tax
Exempt Organization Returns
Form 990 - Return of Organization Exempt From Income Tax
Corporation Income Tax Returns
Form 1120 - U.S. Corporation Income Tax Return
Form 1120S - U.S. Income Tax Return for an S Corporation
Form 7004 - Application for Automatic Extension of Time to File
Corporation Income Tax Return
Available in Mag Tape Only:
Form 940 - Employer’s Annual Federal Unemployment Tax Return
Form 1041 - U.S. Income Tax Return for Estates and Trusts
Near Term Enhancements
Under Development
1065 e-file - Late Spring 2000
941e-file (Non-EDI) - July 2000
EFTPS Internet Product
Pilot Summer 2000
Planned - January 2001
940e-file
941e-file with Attachment Form 941c
941TeleFile 0 Balance (Pilot)
ACH Debit (940e-file, 941e-file and 941TeleFile)
EFTPS Online Features
Enrollment
Payments
Account History
Customer Service
Robust Security
Option, Choice
Issues and Barriers
Impeding Business e-file
Lack of all return types, forms and schedules
Limited research has been conducted on Business
products and customers
File specifications, signature/password requirements are
inconsistent across product lines
Value Proposition - Smaller Volume/Numerous Return
Types
Legacy system architecture prohibits effective
development of new applications
Modernization focus is on Individual
Skilled resources are being focused on Individual
priorities and modernization
What it Takes to Bring on
New Forms
Create Electronic Version of Service Center
Pipeline
Receipt of Return
Code & Edit
Numbering
Feed Data to GMF
Plus Items Unique to e-file
Validation
TRDB
Current & Future Research Efforts
Research
Completed
1. IRS Focus Groups
Software Developers
Conference
Nationwide Tax Forums
2. Emmerling Post Focus Groups
Tax Preparers
3. Software Developer Interviews
4. 941 TeleFile Focus Groups in
1997 and 1998
5. 941 TeleFile 1997 Non User
Survey by SOI
6. 941 TeleFile Statistical Analysis
st
and Satisfaction Survey for 1
nd
& 2 Quarter 1999
Research
Underway
Business
Marketing
DataBase
Research
Planned
1. SWOT (strengths, weaknesses,
opportunities & threats)
Analysis of Business Programs
2. Product Development
Assessment
3. DORA Business Taxpayer
Surveys by Product (940, 941,
1041, 1065, 1120, 1120s)
4. Emmerling Post Focus Groups
with Small Business Taxpayers
5. Emmerling Post One-on-One
Interviews with Partnerships
6. Internal/External Research
Strategy session
Next Steps
Develop a Vision and Strategy with each
Business Unit
Prioritize Products and Service
Opportunities
Identify Options and Alternatives
Implement Strategy
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