Yesterday the Electronic Tax Administration Advisory Committee (ETACC) released its yearly report to Congress. This 14-member committee was created in 1998 and submits annual progress reports to Congress each June. The ETACC report is always near the top of my summer reading list. But I have been known start at the bottom of my list and work my way up.
One of the key topics that this committee reports on is the IRS’ 80% electronic filing goal. ETAAC believes there are four main areas that the IRS needs to focus on in order to achieve this goal.
- Continue to encourage/require tax preparers to file electronically. In the 2012 tax season, tax preparers who file 11 or more returns will be required to e-file.
- Reduce the number of e-file rejects (current rejection rate is 15-20%).
- Increase the number of e-filed returns prepared at home (i.e., some people use filing software, but then print and mail the return).
- Continue to encourage those who prepare their returns manually to step over into the information age. One way the IRS is doing this is by ceasing the practice of automatically sending paper forms to taxpayers.