CERCA Meeting Modernized eFile MeF Program Update

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CERCA MeetingModernized e-File (MeF) Program
Update

• Internal Revenue Service

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MeF Tax Year 2007 Statisticsas of November 4,
2007
Total MeF volume 2,178,628 109.2 of Projections
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MeF Comparison of November 4, 2006 To
November 4, 2007
Forms 1065/B and 2290 were new for 2007.
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MeF Status Mandated Returns as of November 4,
2007

• 44,711 with assets of 10 million or more
• For 2006 Processing Year
• 4,437 received with assets of 10 million or more
• 2,831 received with assets of 50 million or more
  
• 20,106 returns with assets of 50 million or more
  
• Breakdown of 50 million or more
• 6,485 returns had assets over 50 million and
  less than 100 million
• 8,902 returns had assets between 100 million and
  500 million
• 1,856 returns had assets between 500 million and
  1 billion
• 2,863returns had assets over 1 billion

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MeF Status Amended Returns as of November 4,
2007

• MeF has received 2015 amended returns 2 for
  TY2005 return, 2013 TY2006 returns. Many amended
  or superseded returns are claiming TETR credits
• 590 Form 1065 amended returns
• 365 Form 1120 amended returns
• 1,060 Form 1120S amended returns
• 53 Superseded 1120/1120 S returns

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Fed/State Returns as of November 4, 2007

• The IRS has made available 51,878 State
  submissions for 10 states AL, GA, KS, MD, MI,
  MO, NY, PA, SC and WI
• Corporate state returns 49, 700
• Partnership returns 2, 178

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MeF Vendors and Portal Usage

• We have 19 vendors that currently support MeF.
  All have transmitted tax returns in 2007.
• 11 of the 19 have transmitted mandated returns
  (10M and greater in assets).
• Portal Usage 2007 2006
• Electronic Management System (EMS) 3.7 62.4
• Application-to Application (A2A) 96.2 37.3
• Internet Filing Application (IFA) .1 .3
• In 2008 MeF will no longer support EMS Must
  transmit through A2A or IFA.

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MeF Lessons Learned

• Improve control on the shared forms between
  return types
• Improve coordination with industry on the XML
  schema versions
• Improve XML reject definition. Continue to
  provide vendors with reject report cards.
  Expected to be delivered later this year.
• Increased taxpayer awareness around the name
  control.
• Improve Communications on MeF system outages.
  Established a MeF status page on irs.gov.
  Software Developers and Transmitters page

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MeF Whats New!

• Automated Enrollment with certificates was
  implemented on November 5, 2007
• Certificates are optional until January 2009 (ATS
  Nov 2008) when they will be mandatory
• Excise Tax Forms (2290, 720, 8849) are on
  schedule for complete deployment by December
  2007.
• Form 2290 deployed August 2007
• Form 720 deployed November 2007
• 2008 Filing Season
• New Forms added - 1120F (Foreign Corporations)
  and 990N (e-postcard) will be implemented January
  7, 2008
• Legislative and other changes for forms families
  currently on MeF (1120, 1065, ETEC, 990)
• Publication 4163 and 4164 will be implemented by
  November 30th.
• Form 1065 legacy ended on October 31st.
  Currently 97 of the 2007 receipts have been
  processed through MeF. Supported by 15 vendors.

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MeF Form 1040 Status Update

• Contract for the Form 1040 work was awarded on
  10/31/07.).
• Requirements gathering is nearing completion.
  Decomposition slated to begin in late November.
• First Phase includes the base Form 1040 and 11
  commonly used attachments represents over 60
  of the current e-file population
• Release will include Fed/State and short-term
  Amended Return functionality (January 2010)
• This release will represent the most complex
  release to date includes numerous system
  interfaces
• State participation is very strong. 31 states
  have indicated that will be ready in January
  2010.

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Form Composition 1040 Phase I

• Form 1040, U.S. Individual Income Tax Return
• Form 1040 Schedule D, Capital Gains and Losses
• Form 1040 Schedule A, Itemized Deductions
• Form 1040 Schedule B, Fiscal Year Supplemental
  Schedule of Income and Retirement Income Credit
• Form 1040 Schedule EIC, Earned Income Credit
• Form 1099-R, Distributions From Pensions,
  Annuities, Retirement or Profit-Sharing Plans,
  IRA, Insurance Contracts, etc.
• Form 2441, Child and Dependent Care Expenses
• Form 4868, Application for Automatic Extension of
  Time to File U.S. Individual Income Tax Return
  (January 2010)
• Form 8812, Additional Child Tax Credit
• Form 8863, Education Credits
• Form 9465, Installment Agreement Request
• Form W-2, Wage and Tax Statement

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MeF Form 1040 - Status Update.cont

• The tentative dates are as follows
• May/June 2009 for Assurance Testing System (ATS)
  Phase I Tax Year 2008. This would include the
  Fed/State functionality.
• August 2009 for Production Phase I Tax Year
  2008
• November 2009 for ATS Phase I Tax Year 2009
• January 2010 for Production for Tax Year 2009
  (Tax Year 2008)
• Working with States and FTA on a schedule for
  state migration schedule.
• In order to anticipated projections, IRS will
  need to confirm what dates when States and S/W
  developers will be migrating to the MeF platform

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Form 1040 Customer Outreach

• Business Requirements Gathering
• 1040 Executive Council formed Representation
  from software industry, tax professionals, states
  and IRS. First meeting will be held on 11/9/07.
• 1040 Industry Working Group established.
  Includes 15 vendors. To participate, please
  contact myself or Lee Lawrence (lee.lawrence_at_irs.g
  ov). The last meeting (i.e., Fall Fling) was
  held on September 5th.
• Working group interactive technical meetings
  planned in coordination with other meetings (such
  as CERCA, NACTP, etc)
• State Considerations Meet with state and vendor
  representatives at FTAs TIGER Meetings held
  six times a year.
• Software Developers Conference scheduled
  normally for June
• Attend other various outreach sessions, i.e.,
  FTAs e-file Symposium, and Technology
  Conference, AICPAs quarterly MeF working
  sessions

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Questions