NOTE: This headliner is current through the publication date. Since changes may have occurred, no guarantees are made concerning the technical accuracy after the publication date.
Headliner Volume 235
May 20, 2008
The IRS’ May Tax Talk Today webcast, “The Electronic IRS…more than just e-file,” showcased the IRS’ suite of electronic products and services, and previewed enhancements planned for the future.
Like worldwide financial institutions, the IRS is moving toward a paperless environment. IRS electronic services are easy to access, easy to use, faster, more convenient, and more secure – with additional enhancements under development.
This year’s filing season statistics underscore the extent to which e-file has increased. Individuals filed 85.5 million tax returns electronically – 62 percent of the total – and a 12 percent increase over last year. Of those returns, 59.4 million were transmitted by electronic return originators. In addition, there was a more than 100 percent increase in businesses using modernized e-file. And visits to IRS.gov increased by 30 percent to 218 million.
Moderated by host Les Witmer, the show’s panelists included Roger Harris, President of Padgett Business Services/SmallBizPros, and Padgett Foundation; Tony Tullo, Federal Compliance Director, Automatic Data Processing; Beth Jones, Director, Electronic Products Services Support, IRS W&I division, and Paul Mamo, Director, Development Services Division, IRS Electronic Tax Administration.
The panelists also discussed IRS e-services, a suite of products and services that allow tax professionals and taxpayers to conduct business with the IRS at anytime via IRS.gov. Three e-services incentive products include:
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Disclosure Authorization (DA), which allows eligible tax professionals to complete authorization forms, view and modify existing forms, and receive acknowledgement of accepted submissions immediately – all online. DA also allows tax professionals to electronically submit Form 2848, Power of Attorney and Declaration of Representative, and Form 8821, Tax Information Authorization.
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Electronic Account Resolution (EAR), which allows tax professionals to expedite closure on clients’ account problems by electronically sending/receiving account related inquiries. Tax professionals may inquire about individual or business account problems, refunds, installment agreements, missing payments, or notices. Tax professionals must have a power of attorney on file before accessing a client’s account. The IRS response is delivered to an electronic secure mailbox within three business days.
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Transcript Delivery System (TDS), which allows eligible tax professionals to use to request and receive account transcripts, wage and income documents, tax return transcripts, and verification of non-filing letters. A new product (the Record of Account) combines both the Return Transcript and Account Transcript in one product. Tax Professionals can request the products for both individual and business taxpayers. Tax professionals must have a Power of Attorney authorization on file with the IRS before accessing a client's account (or use Disclosure Authorization to file an authorization on a new client and obtain TDS information immediately).
Tax professionals and Electronic Return Originators who are active participants in the IRS e-file program and e-file five or more accepted individual or business returns in a season, are eligible to use these incentive products. In addition, all Circular 230 practitioners who qualify as attorneys, certified public accountants, or enrolled agents also have unlimited access to them whether they e-file client returns or not.
With 132,000 active users, tax practitioners are demonstrating their adoption of e-services. EAR and TDS usage increased 43 percent and 36 percent, respectively, from the previous year.
The IRS is continuing to improve e-services to make it easier for tax practitioners and taxpayers to do business with the IRS electronically. Future enhancements include:
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Strengthening Web site functionality by improving its search function, taking additional measures to protect taxpayer data, and moving 1040 files from legacy systems to modernized equipment in August 2009, which will provide for year-round access to e-file, faster acknowledgements, and the ability to attach forms and amend prior year’s forms.
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The addition of a direct link inside e-services for customer feedback in July 2008.
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Bulk submission of disclosure authorizations, EAR, and TDS requests.
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Ability to attach forms to TDS submissions.
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A new service, “my IRS Account”, for individual taxpayers will allow individuals to get tax information through IRS.gov.
The entire May webcast is accessible for viewing via archive for 12 months at Tax Talk Today. A transcript of the show is also available, as well as an audio podcast.
Sponsored by the IRS, Tax Talk Today is a free, live, monthly interactive webcast aimed at educating tax professionals on the most contemporary and complex tax issues. In addition to viewing live webcasts and archived programs, listening to audio podcasts, and reading show transcripts, subscribers can order audio and video recordings. More information on Tax Talk Today, including registration and CPE credits, is available at the Tax Talk Today Web site.
Tax Talk Today’s next show is on Tuesday, July 8 at 2 p.m. when the show will discuss “Retirement Plan Pitfalls”.
References/Related Topics
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