Tax Experts Urge More E-Filing Facilities For US Businesses

by Mike Godfrey, Tax-News.com, Washington

22 May 2003

With a record number of taxpayers filing their returns electronically in the United States last year, a panel of tax experts has urged the IRS to expand the provision of e-filing services to the business sector.

Members of the Electronic Tax Administration Advisory Committee met earlier this week to discuss recommendations that the group plans to put before Congress in its annual report next month. The committee has been scrutinizing the e-filing process for some time, and is likely to suggest to congress that the IRS begins to draft guidelines on what types of electronic data will have to be kept by firms in order to efficiently complete an online return.

According to Emily Lindsay, vice-president of Marriot International corporate accounting service, companies may have up to five different databases containing invoices and data required to file a tax return, illustrating the need for a streamlined process. She suggested that the IRS may need to implement new IT systems to accept electronic return from businesses.

Lindsay also observed that it may be necessary for the IRS to undertake a survey to establish why 75 million taxpayers still prefer to file their returns in the traditional paper format.

Nevertheless, a record 51.9 million Americans filed their tax returns electronically in the tax year just passed, IRS figures reveal. This is up 13% on the previous year, and sets a new record. The Internal Revenue Service hopes to hit its target of 53 million electronic users by October 2003.

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