Tax Administration: Electronic Filing's Past and Future Impact on Processing Costs Dependent on Several Factors.

摘要

From fiscal years 1997 through 2000, the number of individual and business tax returns filed electronically increased from almost 23 million to almost 41 million. At the same time, the Internal Revenue Services (IRS) actual expenditures for submission processing (which includes funds for processing returns filed on paper and electronically) grew from about $795 million in 1997 to about $924 million in 2000, an increase of 16 percent, or 11 percent in inflation-adjusted dollars. Because it costs less, on average, to process an electronic return compared with a paper return, a growth in processing costs at the same time electronic filing is growing seems contradictory. At your request and as agreed with your office, this report addresses (1) the factors, if any, that limited the impact of electronic filing on the amount of resources (both dollars and staff years) devoted to processing returns and (2) the prospects for future reductions in processing costs as a result of electronic filing.