New IRS E-Service Slashes Time Taken To Obtain Taxpayer Transcripts

by Mike Godfrey, Tax-News.com, Washington

13 September 2004

The Internal Revenue Service has announced a new string to its e-services bow with the launching of an online transcript request service enabling tax practitioners to obtain copies of their client’s tax records within minutes instead of days or weeks.

The Transcript Delivery System (TDS) is the latest in a series of e-services and is being delivered through the IRS Business Systems Modernization program.

Authorized tax practitioners use the new electronic tool to order tax account and tax return transcripts and other tax information for their business and individual clients. The documents are returned to the practitioner’s computer through a secure online connection within minutes. Paper requests for the same information can take days or weeks to complete.

“This important new technology will help tax practitioners improve their services to taxpayers and is part of our continuing efforts to modernize the IRS,” noted IRS Commissioner Mark W. Everson.

Tax practitioners use transcripts when representing their clients before the IRS. Transcripts are printouts of a taxpayer’s account that show actions taken by the IRS or the taxpayer and any tax, penalties or interest assessed.

Tax returns can also be printed as transcripts to show most of the numbers reported on the return and those from accompanying schedules or forms. In many cases, transcripts are used instead of making copies of tax returns.

TDS is one of three premium e-services the IRS has developed for practitioners who have successfully e-filed 100 or more individual tax returns and registered to use e-services. The other premium e-services, Disclosure Authorization and Electronic Account Resolution, were released in July.

According to the IRS, enrolled agent Larry 'Denny' Denman, a North Las Vegas tax practitioner who uses TDS and other IRS e-services, declared the new service “the best thing since sliced bread.”

“I requested eight years of transcripts for one client and printed them out in no time. And the quality is better than anything I get through the mail or by fax.”

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