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MeF An Industry View

MeF An Industry View. Presented by Atilla M Taluy CERCA 26 MAY 2011. MeF is here to stay!. OR In the words of Mr. Rob Bedoya MeF is the Future!. General Industry Perception.

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MeF An Industry View

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  1. MeFAn Industry View Presented by Atilla M Taluy CERCA 26 MAY 2011

  2. MeF is here to stay! FileYourTaxes.com

  3. OR In the words of Mr. Rob Bedoya MeF is the Future! FileYourTaxes.com

  4. General Industry Perception We, as the industry want the MeF to become the successful and stable mode of tax data transfer between the industry and the IRS as well as the states and other tax agencies. FileYourTaxes.com

  5. Universality Within a framework of security, the structure of MeF should be one that mitigates burden on all parties, rather than creating them. All transmission content should primarily be limited to text data, and only per schema formats. FileYourTaxes.com

  6. Universality • Security Issues • Text files vs binary files • Avoid scanner requirements • Do It Yourself software • Small Preparer Businesses • File sizes should be kept to a minimum. • Schemas should be available for all attachments as may be possible. FileYourTaxes.com

  7. Universality • Standardized form schemas should be used across all platforms for common forms, as originally envisioned. • State schemas should be as close to IRS schemas as possible • Attachments vehicles – 8453 • Same basis as the Form 8283 FileYourTaxes.com

  8. Migration Challenges • MeF phase progression must take place within reason, with pragmatism, deliberation, and sufficient personnel. • Full implementation will move the number of IRS forms accepted by MeF from 23 to 155. Almost a 7 fold increase from the first two phases. FileYourTaxes.com

  9. Migration Challenges • Only 27 states participate in MeF and two of those states have not sent any production files. • 17 software companies are in production, and three of these are transmitting extension forms (4868) only. Eventually, total of 58 legacy transmitters are expected to migrate to MeF. FileYourTaxes.com

  10. Migration Challenges • Unavailability of timely IRS Technical support for the software companies • Major mid-season schema changes • Unavailability of Software Developer Kit • Unavailability of agency resources for early and proper testing FileYourTaxes.com

  11. Migration Challenges • Disruptive changes requires reallocation of industry resources. • Late legislation • Unexpected changes in corporate landscape FileYourTaxes.com

  12. Communication There must exist open, uninterrupted and responsive communication channels between the IRS, tax agencies and the software developers and transmitters. FileYourTaxes.com

  13. Communication • Policy level • Technical level • Operational level • Quick alerts are not timely, and are directed to a wide audience. More selective, controlled and responsive avenues to be used. For instance, CERCA, NACTP list-serves. FileYourTaxes.com

  14. Communication • Established ETARC level communications between the IRS and the developer community must continue once the applications are transitioned to submission processing. FileYourTaxes.com

  15. Operational Challenges • Timeout issues • Concerns with increased volumes • Transmission efficiency • Delay in ACKs • States’ communication with the IRS • Perception that longer lead time required to update MeF, for instance with late changes and ERC corrections. FileYourTaxes.com

  16. Operational Challenges • Past year schemas should not require changes, they should already have been perfected. • Higher perceived level of rejects in MeF compared to legacy. • Validation error should be clearer, beyond the mere X-Path. Especially for EROs. • Seek parity in reject codes between MeF and legacy. FileYourTaxes.com

  17. ATILLA M TALUY FileYourTaxes.com atilla@FileYourTaxes.com 805 644 9398 FileYourTaxes.com

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