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