IRS Records 'Best Ever' Season For Electronic Filing

by Mike Godfrey, Tax-news.com, Washington

02 May 2001

The US Internal Revenue Service (IRS) has announced that it has reached new performance standards during this year's tax filing season thanks to record numbers of electronic filings and significant improvements in its taxpayer service. In a statement released by the IRS, Commissioner Charles O Rossotti confirmed: 'The IRS delivered one of the best filing seasons ever, even as the agency continued putting in place its most sweeping reorganization in decades.'

According to the IRS, taxpayers filed nearly 39.5 million returns electronically up to April 20, breaking the 35.4 million record for all of last year. The IRS says it expects to receive about 40 million returns by the time the e-filing program ends later this year.

Mr Rossotti added: 'This year, the IRS provided better service to taxpayers than ever before. Of course, this does not mean we are satisfied. We have much room for further improvement, but this year's results are a step in the right direction.'

Improved taxpayer services this year include a continued rapid pace of tax processing matching last year's which was the best recorded in several years. The IRS phone service had also improved with more than 59.2 million phone calls being dealt with this year which is a 16 per cent increase from last year. Taxpayers who wished to speak directely to an IRS assistor got through 66.5 per cent of the time, up from 62.2 per cent last year. 'These telephone results represent a significant, clear progress toward our long-term access and quality goals. It was made possible in part by new technology, which has been implemented during the last two years,' said Mr Rossotti.

John Dalrymple, Commissioner of the Wage and Investment Division, claimed: 'Our growing array of online capabilities is attracting more and more taxpayers and tax preparers who demand maximum speed, security and convenience.'

Indeed, the IRS website remained one of the most frequently visited sites during the tax season with 1.5 billion hits recorded through to April 16, representing a 57 per cent increase from last year. The number of forms and other documents downloaded topped 103 million by the end of February, a 100 per cent increase from the same period last year.

Furthermore, a record number of taxpayers also used direct deposits for their refunds. More than 31 million tax returns (an increase of 14.5 per cent from last year) selected the direct deposit scheme which is the fastest, and safest, way to get refunds.

And all this while the IRS was undergoing major restructuring. Mr Rosotti noted: 'This was the first filing sseason managed by the new organization, which went into effect just three months before the start of the filing season. We are pleased that we were able to provide significantly improved results in such a short time. This bodes well for our long-term goal of providing top-quality service on a par with the private sector.'

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