December, 2008

TIGERS MeetingTucson

Internal Revenue Service

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MeF 1040 Update

• IRS has made the decision to proceed with the 1040 MeF Program

• Targeting January 2010 for the initial release

• Initial release will include Form 1040 plus 20 forms and schedules that are filed with the 1040 and Form 4868 (22 forms)

• Details of the deployment plan are being finalized

• We are planning an industry call the week of December 15th to share the details and will notify everyone regarding the exact date and time later this week.

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MeF 1040 MOU Schedule

• First draft of 1040 MeF Fed/State MOU has been completed

• Draft 1040 MOU was sent to the States on 11-24-08 for review

• Feedback from the States is due by 12-19-08

• IRS will revise based on the feedback received from States

• Start 1040 MeF MOU through IRS approval process in January of 2009

• Ready for distribution to the States starting in June of 2009

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MeF Statistics Through 11-30-08

• Total MeF Volume= 3,448,653

Form TypeCUM Projected

ReceiptsCUM Actual

Receipts CUM % Actual vs

ProjectedCUM %

2007 vs 2008

1120 349,041 318,175 91.16% 136.04%

1120S 926,986 949,695 102.45% 147.00%

1120-F (new) N/A 224 N/A N/A

7004 1,523,969 1,132,363 74.30% 136.07%

1065/1065-B 658,559 696,008 105.69% 163.06%

990 40,118 52,971 132.04% 195.03%

990-EZ 9,359 10,800 115.39% 206.94%

990-PF 4,500 6,045 134.34% 197.68%

990-N (new) N/A 211,352 N/A N/A

1120-POL N/A 12 N/A N/A

8868 41,521 53,975 129.99% 178.28%

2290 (new) 15,412 16,931 109.86% N/A

720 (new) 1,012 27 2.67% N/A

8849 (new) N/A 75 N/A N/A

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MeF Fed/State Update

17 States in Production status for 1120:

AL, CO, FL, GA, ID, KS, MD, MI, MO, MT, NYCT, NYS, OR, PA, SC, UT and WI

8 States in Production status for 1065:

AL, GA, ID, KS, MD, MI, UT and WI

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Fed/State Returns for Calendar Year 2007

• The IRS made available State submissions for 10 states - Total Volume 55, 326

StateTotal State Returns Made Available

Fed/State Made Available

State Standalone Made Available

ALST 1 1 0

GAST 5562 2,617 2,945

KSST 5048 2,380 2,668

MDST 7000 2,957 4,043

MIST 2873 655 2,218

MOST 0 0 0

NYST 19890 5,654 14,236

PAST 418 5 413

SCST 22 19 3

WIST 14512 9,640 4,872

Total: 55326 23,928 31,398

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Fed/State Returns through 12-4-08

State

Total State Returns

Made Available

Partnership Fed/State

Made Available

Corporate State Standalone

Made Available

Partnership State

Standalone Made

Available

Corporate Fed/State

Made Available

ALST 540 175 10 354 1

COST 124 43 N/A 81 N/A

FLST 251 251 N/A N/A N/A

GAST 23,255 7,526 666 14,034 1,029

IDST 2,028 237 134 1,656 1

KSST 19,847 4,814 3,731 7,772 3,530

MDST 28,877 8,448 5,635 11,104 3,690

MIST 2,638 381 2 2,166 89

MOST 1,885 603 N/A 1,282 N/A

MTST 65 3 N/A 62 N/A

NYST 50,655 17,605 N/A 33,050 N/A

ORST 4,326 294 N/A 4,032 N/A

PAST 3,275 1,738 N/A 1,537 N/A

SCST 3,513 834 N/A 2,679 N/A

UTST 857 65 53 721 18

WIST 50,218 15,090 8,889 17,582 8,657

Total: 192,354 58,107 19,120 98,112 17,015

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IRS Timeline 1120 and 1065

November 3, 2008 Assurance Testing (ATS)

Testing Startup for TY 2008

December 29, 2008 Last day of MeF Production processing for 2008

Bring MeF Production system down to load new tax year programs

January 5, 2009 Production Production Startup for TY 2008--will also support TY 2006 and TY 2007

January 5, 2009 Strong Authentication

(certificates)

Required—passwords no longer accepted

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Final Cutover Schedule for MeF Production System on December 29, 2008

• Transmitters:– Deadline for transmitting State returns – 10:00 am EST

– Deadline for transmitting Federal returns – 11:00 am EST

– Deadline for picking up all outstanding acknowledgements (State and Federal) – 11:59 am EST

• States:– Deadline for transmitting State acknowledgements -- 11:30 am

EST

• NOTE: Remember if anything is not picked up before the deadline (Noon EST on December 29th), it will not be able to be accessed until MeF re-opens on January 5, 2009.

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Questions