TIGERS Meeting

1. TIGERS Meeting Internal Revenue Service

2. 2 MeF Processing Year 2007 StatisticsAccepted returns as of November 25, 2007

3. 3 MeF Comparison of November 25, 2006 to November 25, 2007

4. 4 MeF Volume Breakdown by Form Type

5. 5

6. 6 MeF Status – Mandated Returns as of November 25, 2007 There have been 45,297 returns with assets of $10 million or more filed this year. 24,958 returns had assets greater than $10 million but less than $50 million. 20,339 returns had assets of $50 million or more Breakdown of $50 million or more 6,555 returns had assets over $50 million and less than $100 million 9,020 returns had assets between $100 million and less than $500 million 1,874 returns had assets between $500 million and less than$1 billion 2,890 returns had assets $1 billion and over

7. 7 MeF Status – Amended Returns as of November 25, 2007 MeF accepted 2,105 amended/superseded returns 5 were TY2005 returns Many amended returns are claiming TETR credits 607 Form 1065 amended returns 402 Form 1120 amended/superseded returns 1096 Form 1120S amended/superseded returns * 274 Superseded 1120/1120S

8. 8 Fed/State Returns as of November 25, 2007 The IRS has made available State submissions for 10 states - Total Volume 52,833 Note: Three states are live but have not received any submissions to date Corporate – 23,243 Fed/State 28,396 State Only Partnership - 693 Fed/State 1,501 State Only

9. 9 ETEC (Form 2290) Statistics – As of November 25, 2007 Total Returns Filed – 2,494 Total Accepted – 1,388 Total Rejected – 1,106 Mandated Returns Accepted – 240 Volume Summary for Mandated Returns - $22,665,385.00 First return filed expected with 4th Quarter filing

10. 10 Miscellaneous Number of Returns Filed within 5 days of September 17 filing deadline 9/12 – 9/17 9/17 - 9/22 Number of Companies that filed a Mixed Return 386 mixed returns filed through 11/26/2007 Number of Companies that e-Filed international forms: xxx   .

11. 11 1120 Waiver Statistics – 2007 Requests Total Waivers 182 Outstanding 8 Granted 120 Final Returns – largest percentage Denied 47 Not Required 7

12. 12 1065 Waiver Statistics – 2007 Requests Total Waivers 11 Granted 5 Denied 6

13. MeF 2007 Software Reports An analysis of the software packages and their accuracy based on business rule numbers.

14. 14 General Statistics – As of 11/15/07 Of 946,433 returns transmitted, 876,477 were accepted for an overall acceptance rate of 92.6%. There were 50 packages rated. NOTE: The Report Card Information has not been decimated to each software developer. It is currently being packaged in order to be emailed by mid-December.

15. 15 General Statistics – As of 11/15/07 Top 5 Business Rule Numbers (ERCs) R0000-905 –17,822 R0000-901 – 16,913 R0000-917 – 7,048 R0000-900 – 6,132 X0000-005 – 5,234

16. 16 General Statistics – As of 11/15/07 Software packages Transmitting: 50 Average Number Transmitted ~ 18,929 Software packages > 100,000 returns : 4 Software packages < 5,000 returns : 36 Fewest number Transmitted by a package: 1 Returns

17. 17 General Statistics – As of 11/15/07 Average Number Accepted ~ 17,530 Software packages > 100,000 returns : 4 Software packages < 5,000 returns : 38 Fewest number Accepted by a package : 0 Returns

18. 18 General Statistics – As of 11/15/07 Average Number Rejected ~ 1,399 Software packages > 10k returns : 2 Software packages < 1,000 returns : 40 Fewest number Rejected by a package : 0 Returns

19. 19 General Statistics – As of 11/15/07 Average Number ERCs~ 1,656 Software packages > 10k ERCs : 4 Software packages < 1,000 ERCs : 36 Fewest number of ERCs by a Package : 0 ERCs

20. 20 General Statistics – As of 11/15/07 Average Number ERC/reject ~ 1.66 Highest Rate: 4.60 Lowest Rate: 0.00

21. 21 General Statistics – As of 11/15/07 Average Acceptance Rate ~ 64.49% Highest Rate: 100% Lowest Rate: 0% Packages Above 89%: 10 Size is significant. The top 14 packages in Acceptance rate also file 88% of all returns.

22. 22 Changes Implemented Strong Authentication and Automated Enrollment User guide for AE distributed Document on Strong Authentication needs to be requested from Lee Lawrence or Carol McLaughlin Strong Authentication Digital certificate -? Automated Enrollment Separate sys id ? Eventually convert over Binary Signature ? Login, Single Step SAML ? Other services in same session No binary signature and SAML in same service

23. 23 Changes Implemented (continued) Strong Authentication Mandatory Reminder ATS November 2008 Production January 2009 Threat Mitigation IFA Users ? attachments content type ? application/octet-stream

24. 24 Changes for Processing Year 2008 State Manifest – Included State Schema Version New State Services - GetSubmissionReconciliationList Request a list of state returns that MeF has not received a receipt or acknowledgement from the state IRS Submission Manifest – Added EIN, TaxPeriodBeginDate and TaxPeriodEndDate to manifest for TY2007. Acknowledgment Changes – AFFECTS ALL PROGRAMS – MUST USE NEW ACKNOWLEDGEMENT Added Document ID – FOR STATE = Place “NA” in the field – Previous guidance was “Not Applicable” Added IRS Received Date Added Alerts for 1120-F and 1120S For accepted returns with alerts – customer should not be trying to fix (Guidance will be published) For rejected returns with alerts – customer can fix and then re-transmit

25. 25 Changes for Processing Year 2009 Proposed Change Removing from Return Header - TaxPeriodBeginDate and TaxPeriodEndDate Investigating Manifest versioning State Changes Request??? Requirements are due Dec 12 to our MITS counterparts