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<classification authority="sudocs">GA 1.13:GGD-96-12</classification>
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 <subject>Tax returns</subject>
 <subject>Electronic forms</subject>
 <subject>Tax administration systems</subject>
 <subject>Projections</subject>
 <subject>Income taxes</subject>
 <subject>Information processing operations</subject>
 <subject>Fees</subject>
 <subject>Administrative costs</subject>
 <subject>Taxpayers</subject>
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<titleInfo>
 <title>Tax Administration: Electronic Filing Falling Short of Expectations</title>
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<abstract>GAO reviewed the Internal Revenue Service&apos;s (IRS) plans to maximize
electronic filing, focusing on: (1) IRS progress in broadening the use
of electronic filing; (2) the availability of data needed to develop an
electronic filing strategy; and (3) the implications for IRS if it does
not significantly reduce its paper-processing workload.&lt;p/&gt;GAO found that: (1) IRS will fall far short of its 2001 goal of 80
million electronic returns if the increase in electronic filing
continues at its present pace; (2) IRS believes the decrease in the
number of returns filed electronically in 1995 was due to its actions
against electronic filing fraud; (3) IRS is having little success in
increasing the electronic filing of individual 1040 and business tax
returns which constitute the bulk of returns and take the most time to
process manually; (4) the transmittal fees for electronic filing tend to
deter filers unless they need their tax refunds quickly; (5) IRS does
not have the data needed to determine whether greater electronic filings
of 1040 and business returns would reduce its administrative costs; (6)
IRS has contracted to gather some data on why taxpayers do not use
electronic filing more and how many returns it could expect if it could
motivate people to file electronically; (7) IRS plans to use scanning
more to process paper returns, which should reduce some costs; and (9)
unless IRS can increase electronic filing, its customer service and
paper processing workloads may overwhelm its planned staffing and alter
various aspects of its modernization efforts.</abstract>
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<identifier type="preferred citation">GAO/GGD-96-12</identifier>
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<subject>
 <topic>Tax returns</topic>
 <topic>Electronic forms</topic>
 <topic>Tax administration systems</topic>
 <topic>Projections</topic>
 <topic>Income taxes</topic>
 <topic>Information processing operations</topic>
 <topic>Fees</topic>
 <topic>Administrative costs</topic>
 <topic>Taxpayers</topic>
 <topic>IRS TeleFile Program</topic>
 <topic>IRS Tax System Modernization Program</topic>
 <topic>TSM</topic>
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