IRS Electronic Data for States Rod Sterling Internal

IRS Electronic Data for States Rod Sterling Internal Revenue Service Washington DC NESTOA 2011 Conference Wilmington, Delaware September 2011

New IRS Organization • • GLD is now part of Privacy, Gov’t. Liaison & Disclosure (PGLD) Includes privacy, information protection, incident management GLD formerly part of SB Operating Div. Change invisible to customers

Main Topics • GLDEP Extracts • e-Services Suite of Products • Communication & Support

GLDEP Extracts (cumulative files) versus E-Services Products (online services)

GLDEP Extracts • • Data extracted from IRS master files and other databases Cumulative data: age 1 to 24 months Shared to assist with tax admin aka MF extracts, bulk extracts, tape extracts, disclosure reports

e-Services Products • Suite of products designed for tax professionals & trading partners to do business with IRS electronically • Data is real-time or near • Uses a secure online session

GLDEP Extracts • • • File delivery Cumulative data Includes: • Indiv. & bus. returns • Information returns • Under-reporter data • Levy sources • Audit reports Delivery via SDT Need digital certificate e-Services • • • User services (interactive) Real time data (or near) Includes: • TDS • TIN Matching • PTIN registration • & more Secure online session Access: user name, password & PIN

GLDEP Extracts • • • Governmental Liaison Data Exchange Program (GLDEP) • Annual enrollment required • 32 different files/sorts • Must meet criteria to enroll Non-GLDEP files authorized by MOU Secure electronic delivery via SDT

Extract Use Examples • • • Identify non-filers Identify levy sources Help with audit selection Leads for sales tax non-compliance Identify non-compliant payers Determine discrepancies between federal & state returns

CP 2000 Extract • • Under-reporter matching program Data from second tax-year prior Provides agreed assessments State uses: • Generate proposed assessments • Direct-bill taxpayer • ID employers not reporting

Corporate Affiliations • Entity date for parent & sub corp • Fed Forms 1120 & 851 • State uses: § ID non-filers § Audit selection process of corporations v Submit new corp on BMF/BRTF tickler

Secure Data Transfer (SDT) • Secure electronic file exchange • IRS provides software • State responsible for Identrust digital certificate (authorization) • All NESTOA revenue agencies have an active SDT account

E-Services Products: Transcript Delivery System (TDS) • • TP account data in real or near-real time Individual and business accounts Includes approx. 300 transaction codes Two request options • State user requests • Bulk requests

TDS State User Request • • • Use for individual requests Online response is immediate Information displayed on pc screen Justification for disclosure is required Taxpayer authorization is not required

TDS State User Request Product Options • • Account Transcript Return Transcript Record of Account Wage & Income Documents Delivery Options • • Online Secure Object Repository (SOR) Fax US Mail

TDS Bulk Request • • • Upload formatted file to TDS Up to one megabyte (3, 500 spreadsheet rows) Acknowledgment page appears Delivery to SOR within 48 hours Files deleted after 3 business days

TDS Bulk Request • • • Each transcript must be pulled from SOR individually New “print all” option Requested enhancement: • Application to application (A 2 A) • State would get raw data • Ability to query TDS data

TDS State Usage Report • • • Monthly report – not a transcript Used by IRS Disclosure Delivered to states monthly via SDT Monthly list of individual TDS accesses by state users Only aspect of TDS that uses SDT

Communication & Support

Communication & Support • • IRS Digital Daily (irs. gov) Local Governmental Liaison FTA’s Tax. Exchange web site IRS extract listserv (FTA)

e-Services products • • Information on e-Services products is available on irs. gov Click on Tax Professionals Click on e-Services for Tax Pros Tutorials are available for users of e. Services

Local Governmental Liaison • • • First point of contact Current list on Tax. Exchange (www. taxexchange. org) Click on “IRS/Federal Agencies” on left side of page

IRS State Governmental Liaisons [GL] Contacts [updated May 10, 2011] [more Contact Information] [more on IRS Data Exchange and Extracts] Automated SDT Notifications SDT Monthly Update June 2011 [More New & Archived SDT Tumbleweed updates] Other IRS Documents New IRS Pub 1075 for Disclosure and Computer Security Officers [2010]

Questions? Rod Sterling IRS Governmental Liaison Robert. J. Sterling@irs. gov