Tax Analysts contains news, analysis, and commentary on tax technology, from consumer-oriented platforms such as TurboTax to the IRS’s own Customer Account Data Engine 2 (CADE 2).
The IRS has long struggled with the computer technology necessary to track the incomes of an increasing number of taxpayers – more than 150 million individual taxpayers, and tens of millions of businesses. Besides CADE 2 – designed to speed tax return processing – the IRS also deployed the Modernized e-File system, which helps the Service migrate taxpayers to electronic filing. Tax technology is no less important to state administrators; hardly a day passes without one or more state departments of revenue issuing regulations on electronic filing and electronic remittances, remote sales of goods, and increasingly, online payment options.
Tax technology is also important to return filers. More than 3 million low- and moderate-income federal tax return filers used the Free File system, available through various tax return preparation software developers and at IRS.gov, to file their returns each year. Many states have similar systems for their filers. Commercial tax return preparation software providers have helped push federal electronic filing past 80 percent of all federal returns filed, fulfilling a key goal of the Internal Revenue Service Restructuring and Reform Act of 1998.
The IRS makes available automated online services such as Where’s My Refund (tracking refunds through the Service’s internal processes on their way to taxpayers’ homes), Get Transcript (allowing taxpayers to download and print their own federal tax records), and Online Payment Agreements to move taxpayers from the agency’s phone systems wherever possible to online services. Unfortunately, tax technology is sometimes problematic for the IRS – "104,000 Taxpayer Transcripts Stolen in Data Theft, Koskinen Says"; "Data Breaches Leading to New Return Verification Procedures."
Tax Analysts consistently and promptly publishes all relevant developments regarding taxation of tax technology.