Electronic filing of tax returns
The IRS has published interim figures for electronic filing of 2003 tax returns, for example

• the total number of e-filed returns hit 33.5 million, a more than 9 percent increase from last year
• nearly 7.7 million taxpayers have prepared and filed returns on their home computers, a 23 percent increase from last year
• tax professionals have submitted more than 23 million e-filed returns, a 7.2 percent increase from last year
• direct deposit of refunds climbed to nearly 28 million, a 9.3 percent increase.

Further information:
www.irs.gov/newsroom/article/0,,id=120852,00.html
...back to 4 March 2004

Electronic payment of taxes
To promote greater use of the Electronic Federal Tax Payment System (EFTPS), the IRS has launched an express enrollment process for new business taxpayers.

EFTPS Express Enrollment for New Businesses will affect all businesses receiving a new Employer Identification Number (EIN). Business taxpayers with a federal tax obligation will be automatically pre-enrolled in EFTPS to make all their Federal Tax Deposits.

In addition to receiving their EIN, taxpayers will also receive a separate mailing containing an EFTPS Personal Identification Number (PIN) and instructions for activating their enrollment. New business taxpayers will activate their enrollment by calling an 800-number, entering their banking information and completing an authorization for EFTPS to transfer funds from their account to Treasury's account for tax payments per their instructions.

More than 4.4 million taxpayers have enrolled in the system to make their federal tax payments electronically. Around 250,000 new EINs are issued every year. Further information:
www.irs.gov/newsroom/article/0,,id=119561,00.html
...back to 22 January 2004

Support for tax filing
To coincide with the dispatch of tens of millions of tax packages and electronic filing reminders, the IRS has provided 1040 Central, a one-stop facility accessible from the IRS' website home page, to provide guidance on tax filing for 2003. There is particular emphasis on the benefits of electronic filing and around 40% of taxpayers are expected to use this facility this year.

A number of Tax Tips has also been issued, including

• encouragement for those who are not required to file a tax return to do so in case they are entitled to a refund. Some 70% of filers receive tax refunds.
• guidance on how to identify tax status
• explanations of taxpayers rights and the availability of Publication 1 and its Spanish equivalent
• advice on preparing the tax return well in advance of the April 15 deadline, especially if a refund is due.

Further information:
www.irs.gov/newsroom/article/0,,id=119092,00.html
www.irs.gov (and follow the 1040 Central link)
www.irs.gov/individuals/article/0,,id=118506,00.html
www.irs.gov/newsroom/content/0,,id=106439,00.html
...back to 8 January 2004

Automatic EINs
The IRS is continuing to encourage tax practitioners and new businesses to obtain Employer Identification Numbers (EINs) using the online application form on the IRS website. Since April, nearly half a million EINs have been issued.

The online application is the electronic equivalent of Form SS-4. It can take over a week to obtain an EIN using a paper form, but the electronic version allows one to be issued immediately.

Further information:
www.irs.gov/newsroom/article/0,,id=118396,00.html
...back to 11 December 2003

New on-line business tools launched
The first of a suite of internet-based tools were introduced on November 6 to give tax professionals and financial institutions new choices for working electronically with the IRS.

The first three e-services to be introduced are

• on-line, one-time registration to create an electronic account
• on-line application for a Preparer Tax Identification Number (PTIN), instead of a paper application using Form W-7P
• interactive Taxpayer Identification Number Matching (TIN matching), allowing authorized payers to match up to 25 taxpayer identification numbers and names against IRS records before submitting returns.

Further planned e-services include online application for those who want to become authorized e-filers, an expansion of TIN Matching that allows bulk matching of thousands of Taxpayer Identification Numbers within 24 hours, and special incentive products for e-filers who file more than 100 electronic returns.

Further information:
www.irs.gov/newsroom/article/0,,id=117671,00.html
...back to 13 November 2003

Electronic Federal Tax Payment System
Beginning in January 2004, businesses applying for an Employer Identification Number (EIN) (on Form SS-4, by TeleTIN, or Online Application) that are expected to have a Federal tax obligation will be automatically pre-enrolled in Electronic Federal Tax Payment System (EFTPS) in order to make Federal tax deposits. Details of EFTPS are available on the EFTPS website.

EFTPS was introduced in 1996 and since that time more than 4 million taxpayers have enrolled in the system to make their federal tax payments electronically. Around $1.5 trillion dollars are collected through EFTPS each year. Over ninety-five percent of the employment tax dollars are collected through EFTPS each year.

Further information:
www.irs.gov/formspubs/article/0,,id=109879,00.html#EIN
www.irs.gov/businesses/small/article/0,,id=98350,00.html
www.eftps.gov
...back to 6 November 2003