1 / 12

Form 1040 Electronic Signature Initiatives

Form 1040 Electronic Signature Initiatives. THE RESULTS OF THE PY 2000 ON-LINE ECN PILOT CONTINUED TO SHOW ACCEPTANCE OF ELECTRONIC SIGNATURES. Volumes as of April 20, 2000 were 1,394,715 Software development companies participated by changing their tax preparation software

ibloomfield
Download Presentation

Form 1040 Electronic Signature Initiatives

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Form 1040 Electronic Signature Initiatives "Revolutionizing How Taxpayers Transact and Communicate with the IRS"

  2. THE RESULTS OF THE PY 2000 ON-LINE ECN PILOT CONTINUED TO SHOW ACCEPTANCE OF ELECTRONIC SIGNATURES • Volumes as of April 20, 2000 were 1,394,715 • Software development companies participated by changing • their tax preparation software • We continued to be challenged by factors outside of the pilot’s • control (e.g., attachments precluding ECN use, cost of filing) • A survey is scheduled for May to evaluate the results formally "Revolutionizing How Taxpayers Transact and Communicate with the IRS"

  3. THE PY 2000 PRACTITIONER PIN PILOT WAS EXPANDED AND A GREAT SUCCESS • Volumes as of April 20, 2000 were 5,379,440 • Ten industry partners worked with IRS on the pilot • Taxpayer presence in the office to personally enter the PIN and • preparers mailing in worksheets continued as challenges to overcome • A survey was distributed in March to evaluate the results of the pilot "Revolutionizing How Taxpayers Transact and Communicate with the IRS"

  4. PLANS FOR PY 2001 WERE INFLUENCED BY THE • COMMISSIONER’S GUIDANCE REGARDING THE PAPER JURAT • The paper jurat has been identified as a significant obstacle • Form 8453 is also a significant contributor to the cost of processing • electronic submissions for IRS • The paper jurat carries the return signature • Jurat statement • Disclosure consent • Authorization for direct debit/deposit of funds • Authorization to provide debt indicator • The jurat also acts as the transmittal vehicle for Form 1040 attachments "Revolutionizing How Taxpayers Transact and Communicate with the IRS"

  5. NINE OPTIONS WERE IDENTIFIED AND EVALUATED AGAINST A SET OF CRITERIA THAT ASSESSED IMPACT ON IRS AND TAXPAYERS • IRS • Implementation Risk • Litigation Risk • Infrastructure Impact • Cost Impact • Taxpayer • Inconvenience • e-Services Support • Cost Impact "Revolutionizing How Taxpayers Transact and Communicate with the IRS"

  6. ANALYSIS INDICATED THE IMPLEMENTATION THAT WILL BEST SERVE THE TAXPAYER AND IRS • Short- to Mid-Term • Self-selected PIN with Shared Secret Validation • Long-Term • Digital Signature "Revolutionizing How Taxpayers Transact and Communicate with the IRS"

  7. ALMOST 100% OF ALL FORM 1040 FILERS WOULD BE ENABLED WITH AN ELECTRONIC SIGNATURE • All taxpayers are enabled except filers of foreign returns and first time filers under 16 years of age • The PIN is usable on-line or at a preparer’s office • The taxpayer will self-select a PIN and share information from previous year’s return (AGI, Total Tax) • Regular e-file processing will occur except for up-front validation and a Form 8453 indicator being set • Tax booklets and possibly a postcard mailing will provide taxpayers with information "Revolutionizing How Taxpayers Transact and Communicate with the IRS"

  8. EVEN WITH THE ACCEPTANCE OF A PIN OR DIGITAL SIGNATURE, SOME ATTACHMENTS STILL REQUIRE A PAPER JURAT • Currently allowed as part of an e-filed return • 2120 Multiple Support Declaration • 8283 Sch B Non-Cash Charitable Contributions, Declaration of Appraisal Summary • 8332 Release of Claim to Exemptions for Children of Divorced Taxpayers • W-2, W-2G, 1099R Forms to support withholding (waiver in effect for PY 1999; request for permanent waiver pending) "Revolutionizing How Taxpayers Transact and Communicate with the IRS"

  9. Proposed future implementation • 56 Notice Concerning Fiduciary Relationship • 970 Application to Use LIFO Inventory Method • 982 Reduction of Tax Attributes Due to Discharge of Indebtedness • (Also section 1082 basis adjustment) • 1310 Statement of Person Claiming Refund Due to a Deceased • Taxpayer • 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains • 3115 Application for Change in Accounting Method • 3468 Investment Credit (Attached to 3800 or attached separately) • 3520 Annual Return to Report Transactions with Foreign Trusts "Revolutionizing How Taxpayers Transact and Communicate with the IRS"

  10. Proposed future implementation (cont.) • 8609 Low Income Housing Credit Allocation Certificate • 8693 Low Income Housing Credit Disposition Bond • 8847 Sch A Receipt for Contributions to Selected Community Dev. Corps (Attached to 3800 or attached separately) • T (Timber) Forest Industries Schedule • W2-C Statement of Corrected Income and Tax Amounts "Revolutionizing How Taxpayers Transact and Communicate with the IRS"

  11. SEVERAL OPTIONS TO ADDRESS THESE ATTACHMENTS HAVE BEEN IDENTIFIED... • Waive submission • Continue to accept as paper attachments to jurat • Enable attachments electronically • Investigate other technologies (e.g., fax, scanning) • Leverage existing information from federal/state agencies …A TASK FORCE LED BY THE DEPUTY CHIEF OPERATIONS OFFICER MET APRIL 6 TO BEGIN INVESTIGATING THESE OPTIONS --- RECOMMENDATIONS DUE SOON "Revolutionizing How Taxpayers Transact and Communicate with the IRS"

  12. "Revolutionizing How Taxpayers Transact and Communicate with the IRS"

More Related