FROM THE OFFICE OF PUBLIC AFFAIRS

On the eve of the deadline fortax filing, I’d like to say a few words about how thisyear’s filing season is going and a few comments on IRS management and tax simplification.

No one likes to pay taxes, but itis also true that fair, efficient and effective tax collection isthe basis for everything government does from defense to healthcare for the elderly to educational loans to upkeep of thenational parks. And before I continue, I would like to recognizethat the vast majority of our citizens understand this and yearin and year out pay their taxes in full and on time.

As we have said many times, ofcourse, both our tax code and our tax collection system havedeveloped problems over the course of many years. Treasury andthe IRS are committed to doing everything possible to addressthose problems. Just as these problems developed over many yearswe cannot correct them overnight.

However, the IRS has made realprogress in the past year, and this has been a good filingseason. Electronically-filed returns have increased 25% over lastyear; four million taxpayers have filed their tax returns byphone; while the IRS web site, which provides forms, informationand some interactive capability, has received more than 95million hits this fiscal year, a 162% increase from last year.

IRS employees have also served35% more taxpayers over the telephone. In an Associated Presspoll released last week, Americans recognize that the IRS hasimproved: 7 out of 10 taxpayers gave the IRS a positive rating onits ability to handle returns and inquiries. What we need to donow is build on these accomplishments.

As part of our effort to servethe taxpayers better, today we are announcing a package of morethan 60 measures to simplify the tax laws and enhancetaxpayers’ rights. These measures, which are revenueneutral, build upon elements of the President’s budget andconstitute another step in the Administration’s continuingefforts to simplify and make fairer our existing tax structure.

Our goal is clear: we want tomake life easier for the American taxpayer. Today’s packagewill save millions of citizens and small businesses millions ofhours spent filling out tax forms. One provision alone will free 1.7million people, who are typically children, from having tofile separate tax returns.

In addition, today we areannouncing that we will explore ways to move to an electronic taxpayment system, which would permit taxpayers to pay their taxliabilities using credit cards, debit cards or other electronicfund transfer alternatives.

Deputy Secretary Summers and Iare now happy to take your questions.