FEDERAL/STATE TELEFILEFEDERAL/STATE TELEFILE

BACKGROUND

Federal/State TeleFile allows eligible taxpayers in participating states to file their state income tax return in the same phone call as their federal return using the IRS TeleFile System.

TARGET AUDIENCE

Taxpayers must qualify for TeleFile Receive the special tax package(s) in the

mail Taxpayers must live in the participating

states Have withholding only from the

participating states’ sources

PROGRAM OPERATION

Taxpayer completes both the federal & state tax record

Calls the toll-free number Completes the federal portion Receives a federal confirmation number

PROGRAM OPERATION (cont’d) Taxpayer completes the “disclosure

consent” Taxpayer completes the state specific

portion The return is formatted as a Federal/State e-file return

State data is retrieved from the State Retrieval Subsystem

PROTOYPE

Conducted in June 1998 with Indiana and Kentucky

Complete end to end test Volunteers called in”dummy” returns Call length: IN - 20 mins. KY-18 mins. Technical issues resolved Overall 96%satisfaction rate

PILOT RESULTS- KY

Simple return Average call length (state portion): 6 mins.

15 secs.

Average call length (entire call): 18 mins. 51 secs.

Volume: 40,833 returns Projected: 10,000 returns Exceeded projections by 308% Over 90% satisfaction rate

PILOT RESULTS- IN

Complex return Average call length (state portion):

– 9 mins. 5 secs.

Average call length (entire call): – 21 mins .41 secs

Volume: 65,507 returns Projected: 49,000 returns Exceeded projections by 33% Over 90% satisfaction rate

2000 FILING SEASON

KY Volumes: 54,813 returns-34% increase from last year

IN Volumes: 81,903 returns-25% increase from last year

(As of 4/24/00)

2001 FILING SEASON

Indiana Kentucky Georgia Oklahoma

CONTACT PERSON

Portia D. Bingham

Federal/State TeleFile Program Analyst

Headquarters

202-283-0226

Portia.D.Bingham@irs.gov