Industry Panel Perspectives

May 2012

Industry Panel Perspectives

May 2012

Modernized eFile (MeF)

Presented by Michele Geraci

Background

MeF Roadmap–2010: Support for 23 Forms–2011: Additional Forms and Focus on

Infrastructure–2012: Support for Remaining

Forms/Schedules

ChallengesSlow Acknowledgements Lead to MeF

ShutdownRefund DelaysReturn Processing Issues

ImpactTaxpayers–Delayed Refunds–Where’s My Refund

Industry– Significant Call Volume–Brand Image Impact

RecommendationsSupport Legacy EF for Another Tax SeasonSet Taxpayer Expectations for Refund Timing

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Industry Panel Perspectives

May 2012

Return Preparer Regulations

Presented by Kathy Pickering

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RTRP Requirements

• New Registration $64.25 / Renewals - $63• Provisional PTINs available for another yearPTIN

• Tax Compliance - Straightforward requirement• Background Check – proposals pending

Tax Compliance and Background check

• Beta test period ran Nov – March/ test is now fully live• Initial results are very encouragingIRS Test

• 15 hours per year / Effective in 2012• 2 hours of ethics, 3 hours of federal tax law updates, 10 hours

of other federal tax law• Last minute year end compression challenges

Continuing Education

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Upcoming ChallengesTax Preparer AttritionTest Schedule CompressionPTIN Information and the Freedom of

Information ActCompliance / Enforcement of RegulationsPreparer Penalties

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SuccessesIRS personally delivering first certificates

Recognition and celebration of accomplishment

IRS engagement and communication Establishment of Return Preparer Program office Willingness to review/revise plans – e.g. fingerprinting Proactive problem solving for potential issues

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Industry Panel Perspectives

May 2012

Tax Armageddon

Presented by John Sapp, CPA

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Prophecy and PrognosticatorsDecember 2012 – The end of

the World?“…Ticking Time Bomb…”“…Total Confusion…”“…Real disaster in the filing season…”“…Very Very Concerned…”

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Prophecy and PrognosticatorsDecember 2012 – The end of

the World?

? ? ?

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“Ticking Time Bomb”

93 Expiring or Expired Tax ProvisionsFederal Debt LimitElection YearBCA Spending CutsMedicare Payment Rate ReductionWhy not just extend?

Deficit from $3.0 Trillion to $11.0 Trillion

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“Very Very Concerned”AMT ExemptionDepreciationAbove the line DeductionsAfter AGI DeductionsTax RatesTaxable Income

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“Total Confusion”TaxpayersPoliticiansIRSFinancial Markets (ASC 740)IRSTax PreparersIndustry

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“Real Disaster”Confusion Inability to fileDelayed Season startSupport and CommunicationResource Allocation

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Industry Panel Perspectives

May 2012

Forward Framework

Presented by Dave Olsen

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Challenges

• Removal of DI eroded taxpayer informationDebt Indicator

• Reduction of previously reported detailsDaily Volume

• Information void confounds taxpayer / preparer service

System / Return Status

• Early season filer impactRefund Status

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Communication Framework

Real time MeF world of expectations

Key PrinciplesTransparencyTimeliness

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Communication Framework

Proposed Definition of an Event

Interruption of a process for over x minutes…

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Communication Framework

Communication Process FoundationLeverage industry front-line with

TaxpayersPreparers

Initial Alert / Hourly UpdatingInternal / External Channel ConsistencyData Availability

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Objectives

Build on planning process successes

Long term – “Dashboard”

Partner and move forward