december 4, 2007 tigers meeting internal revenue service
TRANSCRIPT
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December 4, 2007
TIGERS Meeting
Internal Revenue Service
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MeF Processing Year 2007 StatisticsAccepted returns as of November 25, 2007
Accepted Returns
Projected Returns % Projection
1120 232,376 237,100 98.0%
1120S 646,104 612,500 105.56%
7004 831,816 843,900 98.6%
1065/B 426, 774 250,000 170.7%
990/990EZ/PF 35,254 33,500 105.2%
8868 30,344 18,100 167.2%
2290 1,388 9,900 14.0%
720 0 200 0%
Total MeF volume – 2,204,056 Total MeF volume – 2,204,056 228%228% of the total volume this day in of the total volume this day in 20062006
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MeF Comparison of November 25, 2006 to November 25, 2007
2006 Accepted Returns
2007 Accepted Returns
% Increase of 2006 volume
1120 144,946 232,376 +160%
1120S 400,794 646,104 +161%
7004 392,134 831,8166 +212%
990/990EZ/PF 14,379 35,254 +245%
8868 13,307 30,344 +228%
1065/B* N/A 426,774 N/A
2290* N/A 1,388 N/A
720* N/A 0 N/A
* First year on MeF – no data for 2006* First year on MeF – no data for 2006
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MeF Volume Breakdown by Form Type
2290 0%
1065 30%
1120 18%
1120S52%
1120 (216,270) 1120S(623,054)
1065 (366,094) 2290 (903)
Source: MeF Executive Report
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Paper vs. e-file for Form 1120S
Paper vs. e-file for Form 1120
Paper vs. e-file for Form 1065
Source: Electronic Tax Administration Research and Analysis System Database & MeF Executive Report
MeF (e-file) vs. Paper
Paper 84%
Mef 16%
Mef (623,054) Paper (3,286,676)
Mef 10%
Paper 90%
Mef (216,270) Paper (1,989,273)
Paper vs. e-file for Form 2290
Mef 0%
Paper 100%
Mef (903) Paper (736,599)
Legacy e-file 1%
Paper 87%
Mef 12%
Mef (366,094)Legacy e-file (36,682)Paper (2,531,821)
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MeF Status – Mandated Returns as of November 25, 2007
There have been 45,297 returns with assets of $10 million or more filed this year.
• 24,958 returns had assets greater than $10 million but less than $50 million.
• 20,339 returns had assets of $50 million or more
• Breakdown of $50 million or more – 6,555 returns had assets over $50 million and less than $100 million
– 9,020 returns had assets between $100 million and less than $500 million
– 1,874 returns had assets between $500 million and less than$1 billion
– 2,890 returns had assets $1 billion and over
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MeF Status – Amended Returns as of November 25, 2007
MeF accepted 2,105 amended/superseded returns
– 5 were TY2005 returns
– Many amended returns are claiming TETR credits
– 607 Form 1065 amended returns
– 402 Form 1120 amended/superseded returns
– 1096 Form 1120S amended/superseded returns
* 274 Superseded 1120/1120S
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Fed/State Returns as of November 25, 2007 • The IRS has made available State submissions for 10 states - Total Volume 52,833
– Note: Three states are live but have not received any submissions to date
– Corporate – 23,243 Fed/State 28,396 State Only
– Partnership - 693 Fed/State 1,501 State Only
Total State Returns Made Available
Fed/State Made Available
State Standalone Made Available
Grand Total 52833 22,936 29,897
StateTotal State Returns Made Available
Fed/State Made Available
State Standalone Made Available
GAST 5448 2,572 2,876
KSST 4895 2,283 2,612
MDST 6913 2,911 4,002
MIST 1724 357 1,367
NYST 19546 5,577 13,969
PAST 352 5 347
SCST 2 1 1
WIST 13953 9,230 4,723
Total: 52833 22,936 29,897
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ETEC (Form 2290) Statistics – As of November 25, 2007
• Total Returns Filed – 2,494
– Total Accepted – 1,388
– Total Rejected – 1,106
– Mandated Returns Accepted – 240
– Volume Summary for Mandated Returns - $22,665,385.00
• First return filed expected with 4th Quarter filing
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Miscellaneous
• Number of Returns Filed within 5 days of September 17 filing deadline
– 9/12 – 9/17
– 9/17 - 9/22
• Number of Companies that filed a Mixed Return
– 386 mixed returns filed through 11/26/2007
• Number of Companies that e-Filed international forms:
– xxx•
– .
1120 40,191
1120S 74,568
1120 20,843
1120S 43,368
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1120 Waiver Statistics – 2007 Requests
• Total Waivers 182
– Outstanding 8
– Granted 120• Final Returns – largest percentage
– Denied 47
– Not Required 7
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1065 Waiver Statistics – 2007 Requests
• Total Waivers 11
– Granted 5
– Denied 6
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December 4, 2007
MeF 2007 Software Reports
An analysis of the software packages and their accuracy based on business rule numbers.
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General Statistics – As of 11/15/07
• Of 946,433 returns transmitted, 876,477 were accepted for an overall acceptance rate of 92.6%.
• There were 50 packages rated.
• NOTE: The Report Card Information has not been decimated to each software developer. It is currently being packaged in order to be emailed by mid-December.
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General Statistics – As of 11/15/07
• Top 5 Business Rule Numbers (ERCs)
1. R0000-905 –17,8222. R0000-901 – 16,9133. R0000-917 – 7,0484. R0000-900 – 6,1325. X0000-005 – 5,234
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General Statistics – As of 11/15/07
• Software packages Transmitting: 50
• Average Number Transmitted ~ 18,929
• Software packages > 100,000 returns : 4
• Software packages < 5,000 returns : 36
• Fewest number Transmitted by a package: 1 Returns
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General Statistics – As of 11/15/07
• Average Number Accepted ~ 17,530
• Software packages > 100,000 returns : 4
• Software packages < 5,000 returns : 38
• Fewest number Accepted by a package : 0 Returns
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General Statistics – As of 11/15/07
• Average Number Rejected ~ 1,399
• Software packages > 10k returns : 2
• Software packages < 1,000 returns : 40
• Fewest number Rejected by a package : 0 Returns
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General Statistics – As of 11/15/07
• Average Number ERCs~ 1,656
• Software packages > 10k ERCs : 4
• Software packages < 1,000 ERCs : 36
• Fewest number of ERCs by a Package : 0 ERCs
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General Statistics – As of 11/15/07
•Average Number ERC/reject ~ 1.66
•Highest Rate: 4.60
•Lowest Rate: 0.00
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General Statistics – As of 11/15/07
• Average Acceptance Rate ~ 64.49%
• Highest Rate: 100%
• Lowest Rate: 0%
• Packages Above 89%: 10
• Size is significant. The top 14 packages in Acceptance rate also file 88% of all returns.
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Changes Implemented
• Strong Authentication and Automated Enrollment
– User guide for AE distributed
– Document on Strong Authentication needs to be requested from Lee Lawrence or Carol McLaughlin
• Strong Authentication
– Digital certificate - Automated Enrollment
– Separate sys id Eventually convert over
– Binary Signature Login, Single Step
– SAML Other services in same session
– No binary signature and SAML in same service
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Changes Implemented (continued)
• Strong Authentication Mandatory Reminder
– ATS November 2008
– Production January 2009
• Threat Mitigation
– IFA Users attachments content type application/octet-stream
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Changes for Processing Year 2008
• State Manifest – Included State Schema Version
• New State Services - GetSubmissionReconciliationList
– Request a list of state returns that MeF has not received a receipt or acknowledgement from the state
• IRS Submission Manifest – Added EIN, TaxPeriodBeginDate and TaxPeriodEndDate to manifest for TY2007.
• Acknowledgment Changes – AFFECTS ALL PROGRAMS – MUST USE NEW ACKNOWLEDGEMENT
– Added Document ID – FOR STATE = Place “NA” in the field – Previous guidance was “Not Applicable”
– Added IRS Received Date
– Added Alerts for 1120-F and 1120S
• For accepted returns with alerts – customer should not be trying to fix (Guidance will be published)
• For rejected returns with alerts – customer can fix and then re-transmit
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Changes for Processing Year 2009
• Proposed Change
– Removing from Return Header - TaxPeriodBeginDate and TaxPeriodEndDate
– Investigating Manifest versioning
• State Changes Request???
– Requirements are due Dec 12 to our MITS counterparts