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Modernized e-File (MeF)

Update

Update

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Agenda

Filing Season 2014 – A Look Back

New for Filing Season 2015

ACA Information Return (AIR) System

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Filing Season 2014

A Look Back

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•• Form Form 94x and F1041 Families added to 94x and F1041 Families added to MeFMeF

•• End End to End monitoring provided enhanced trouble to End monitoring provided enhanced trouble reporting and

reporting and serviceservice

•• Migration to Integrated Enterprise Portal (IEP) Migration to Integrated Enterprise Portal (IEP) –– provided expanded capability and reliability

provided expanded capability and reliability implemented

implemented

Filing Season 2014 - A Look Back

Federal Enhancements

implemented implemented

Developed Portal Transition Guide Developed Portal Transition Guide A2A

A2A site affinity managed using cookiessite affinity managed using cookies

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•• States can retrieve the “Total Number” of States can retrieve the “Total Number” of

submissions available by Submission status submissions available by Submission status category for pick up.

category for pick up.

•• Provided detailed information to states in the Provided detailed information to states in the “MeF Service Request Guidance” document “MeF Service Request Guidance” document explaining how to best use Get New

explaining how to best use Get New

Filing Season 2014 - A Look Back

State Enhancements

explaining how to best use Get New explaining how to best use Get New

Submissions, Get Submissions, and Get Submissions, Get Submissions, and Get

Submissions by Message ID service requests. Submissions by Message ID service requests. •• States are no longer required to send receipts States are no longer required to send receipts

after receiving submissions. after receiving submissions.

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II

2014 Filing Season Statistics

2014 FILING SEASON STATISTICS

Cumulative statistics comparing 10/4/13 and 10/3/14

Individual Income Tax Returns: 2013 2014 % Change Total Receipts 143,050,000 144,386,000 0.9 Total Processed 142,422,000 144,155,000 1.2 E-filing Receipts: TOTAL 119,338,000 122,470,000 2.6 Tax Professionals 74,524,000 74,957,000 0.6 Self-prepared 44,813,000 47,513,000 6.0 6 Web Usage: Visits to IRS.gov 421,874,575 401,628,658 -4.8 Total Refunds: Number 107,205,000 107,363,000 0.1

Amount $286.967 billion $290.887 billion 1.4

Average refund $2,677 $2,709 1.2

Direct Deposit Refunds:

Number 82,747,000 83,018,000 0.3

Amount $239.146 billion $238.742 billion -0.2

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2014 Filing Season Statistics

Midnight Friday 10/03/14 vs Midnight Friday 10/04/13

Nationwide

2014 Total 2013 Total % of Change

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ERO Accepted 74,957,150 74,524,192 0.58%

Online Accepted 47,513,307 44,813,481 6.02%

Total 122,470,457 119,337,673 2.63%

Balance Due 19,028,685 17,374,879 9.52%

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Overall a Successful 2014 Filing Season

•• Despite some challenges, overall we had a Despite some challenges, overall we had a successful filing season.

successful filing season.

•• The success electronic filing (MeF) is The success electronic filing (MeF) is marked by the marked by the incredible partnership we have with our Industry

incredible partnership we have with our Industry Partners

Partners –– Return Preparers, Software DevelopersReturn Preparers, Software Developers, , Partners

Partners –– Return Preparers, Software DevelopersReturn Preparers, Software Developers, , Transmitters/EROs

Transmitters/EROs, and , and State and Regional Revenue State and Regional Revenue Authorities.

Authorities.

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New For Filing Season 2015

New For Filing Season 2015

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E-Signature and E-File Strategy Update

E-Signature

• IRS issued new guidance that expands the ways electronic return originators (EROs) may obtain electronic signatures from their clients

• Affects only

Form 8879, IRS e-file Signature Authorization for the Form 1040 series, and

Form 8878, IRS e-file Signature Authorization for Form 4868 (which is the extension to file) and Form 2350 (which is the extension to file for taxpayers abroad).

• IRS plans to issue additional information on this new guidance in Publication 1345 "Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns.”

• The use of e-signatures on Form 8878 and 8879 by EROs is optional. But, we encourage industry to expand the electronic signature options in your software products.

E-File Strategy

• IRS has established a group to look at what should be done for business returns, with an initial focus on Employment Tax returns – the Form 94x series.

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94x MeF Migration Notification Reminder

• Notification was issued on September 4, 2014 during Reporting Agent Forum call and is posted on IRS.gov.

• Reporting Agents and other transmitters who filed 5,000 or more employment tax returns during Processing Year 2014 should migrate to MeF no later than July 31, 2015, the second quarter 2015. By July 31, 2015, all current and prior quarterly returns should be submitted through MeF.

• Reporting Agents and other transmitters who filed less than 5,000 employment

• Reporting Agents and other transmitters who filed less than 5,000 employment tax returns during Processing Year 2014 will have until October 31, 2015, the 3rd

quarter 2015, to migrate to MeF.

• All Form 94x 4th quarter and annual filings due on January 31, 2016 must be

filed via MeF.

• Filers who currently use the Online Filing PIN in the Legacy system will still be able to use this method to file their returns through MeF starting in 2015.

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MeF R9.5 Filing Season 2015

New Affordable Care Act (ACA) Forms • Form 8962 Premium Tax Credit

• Form 8965 Health Coverage Exemptions • Provision Information is available on IRS.gov

http://www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions-Home

• IRS XML Standards - Phase 2 • Background

• Background

• 2013,1040 XML standardization implemented • 2014, Remaining forms & schedules

• Phase 2 (WSDLs, etc.) 2015

• O&M Legislative Changes

• Performance & Infrastructure Improvements to ATS and Production Environment

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DeviceID

• In an effort to improve the Service’s ability to identify and reduce

refund fraud, an unique identification number (Device ID) will be developed and transmitted as part of each electronically filed return.

• Information from the device used to prepare a return will be

captured by the software developer. They will run through a captured by the software developer. They will run through a hashing algorithm which generate a 40 character string. This result will be included with the electronic submission.

• More details:

http://www.irs.gov/Tax-Professionals/e-File-Providers-&-Partners/DeviceID/

• Questions can be directed to: [email protected]

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Upcoming Key Dates*

• ATS Release 9.5 Testing: 11/03/2014

• ATS Calls for FS 2015 (will be posted on IRS.gov): Starting 11/03/14 – Daily for the first week

4:00 PM ET

Refer to the MeF Status Page for Additional Refer to the MeF Status Page for Additional Information and Call Access Code

• IMF Shutdown: Late November 2014

• BMF Shutdown: Late December 2014

• 2015 Filing Season Start - TBD

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•• MeF Program Information is the main page for MeF Program Information is the main page for Modernized

Modernized ee--FileFile

•• URL: http://www.irs.gov/uac/ModernizedURL: http://www.irs.gov/uac/Modernized--ee--FileFile--(MeF) (MeF)--Program

Program--InformationInformation

•• Contains Contains links to the family of MeF Web Pages such as links to the family of MeF Web Pages such as

MeF Communications

•• Contains Contains links to the family of MeF Web Pages such as links to the family of MeF Web Pages such as the MeF User Guides & Publications and Status

the MeF User Guides & Publications and Status PagePage

•• Mailbox for Modernized Mailbox for Modernized ee--FileFile

•• Send Send questions to [email protected] questions to [email protected]

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ACA Information Return (AIR)

ACA Information Return (AIR)

System

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AIR Overview

• 1094/5 B are submitted by a taxpayer’s Insurance Issuer

• 1094/5 C are submitted by the taxpayer’s applicable large

employer (ALE)

• These information returns can be filed electronically

(mandatory for some filers) or on paper

• 2015 is an optional year, 2016 is a mandatory year

• 2015 is an optional year, 2016 is a mandatory year

• New Platform. ACA Information Return (AIR) system

• Based on web services

• Forms will be XML Schemas

• Service Requests will be SOAP Messages

• Two communication channels: A2A and a User Interface through a web browser

• Two environments: Test and Production

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Coming Soon to AIR

• Publication 5164 “Test Package for Electronic Filers of

Affordable Care Act (ACA) Information Returns (AIR)”

• Publication 5165 “Affordable Care Act (ACA) Information

Returns (AIR) Guide for Software Developers and Transmitters.

• New pages on IRS.gov for AIR software developers

• Quick Alert distribution list

• Quick Alert distribution list

• Toll free number to reach Electronic Products and Services

Support (EPSS) E-Help Desk for support

• A email address for new development and system issues (like

the MeF Mailbox)

• Communication of Rollout Schedule

References

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