The Past and Future of Electronic Filing

EF Facts

• EF returns are DRAMATICALLY increasing each year.
• By 2002, all returns prepared by computer should be filed electronically.
• To take advantage of this trend be sure you have an EFIN - Electronic Filing Identification Number. There is still time to apply.

IRS Mandates for EF

• From the IRS Restructuring and Reform Act of 1998:
By 2001 - To the extent practicable, all returns prepared electronically should be filed electronically for taxable years beginning after 2001.
By 2007 - 80% of all tax and information returns should be filed electronically.
• Electronic filing of Form 1065 is now required if the return contains over 100 K-1s.

IRS Plans Ahead

• In 2-5 years, the IRS expects to have 48-hour refunds for direct deposit returns.
• In 5-10 years, the IRS expects to offer 1-hour acknowledgements.
• By 2003, the IRS plans to allow electronic filing of Form 941s. They already offer 941 online filing.
• By 2003, the IRS plans to offer electronic filing of Form 1120.

Call Drake at 1-800-890-9500 to get your office ready to EF in 2001!