FEDERAL/STATE TELEFILE

1. FEDERAL/STATE TELEFILE

2. 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.

3. TARGETAUDIENCE • 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

4. PROGRAMOPERATION • Taxpayer completes both the federal & state tax record • Calls the toll-free number • Completes the federal portion • Receives a federal confirmation number

5. 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

6. 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

7. 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

8. 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

9. 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)

10. 2001 FILING SEASON • Indiana • Kentucky • Georgia • Oklahoma

11. CONTACT PERSON Portia D. Bingham Federal/State TeleFile Program Analyst Headquarters 202-283-0226 Portia.D.Bingham@irs.gov