IRS Oversight Board Says Agency Likely To Miss 2007 E-Filing Target

by Mike Godfrey, Tax-News.com, Washington

29 January 2004

Speaking at the recent annual public meeting of the IRS Oversight Board, board member Larry Levitan suggested that the US Internal Revenue Service is unlikely to meet its target of having 80% of all federal tax returns filed electronically by 2007.

Although expressing doubts that the tax agency will meet the Congress-imposed goal, Mr Levitan nevertheless expressed the opinion that electronic filing of tax returns is beneficial for taxpayers and the IRS alike.

Also speaking at the meeting, executive director of the Free File Alliance, Michael Cavanagh explained that technical problems with the e-filing system in its early stages may have put some taxpayers off, arguing that the greatest incentive for filing taxes online is a smooth user experience.

Meanwhile, Jeffrey Adelstone, chairman of the Information Reporting Program Advisory Committee, suggested that state-madated e-filing of tax returns may help the IRS to achieve its 80% goal, as taxpayers are likely to be more amenable to filing federal tax returns online if they are already obliged to file their state returns in that way.

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