December 1998 Forms Automation Processing Survey

tates Participating in Survey

Part One: General Questions

17 States Responding

Effect on Number of Employees 14 States Responding

Taxpayer Education Efforts NO YES 19 States Responding

Part Two: Software Developer Approval Process

Method of Approving Software Developers 24 States Responding

Tax Form Requirements for Reproduction 24 States Responding

Tax Forms Permitted to be Reproduced 24 States Responding

Required Approvals For New Editions No Approval Required Approval Required

Number of Employees Authorized to Approve Substitute Tax Forms 25 States Responding

Recognition of Approved Software Developers

Defining Software Developer Forms 14 States Responding

YES NO

22 States Responding

Part Three: Equipment and Technology

17 States Responding

13 States Responding

Use of 2-D Barcode

22 States Responding

24 States Responding

25 States Responding

Types of Technology Planned EDI Telefile FDI Fax W-2 ELF Internet Filing Barcode for Notices CD-ROM File IVR Attachments PC Filing Imaging Electronic Liens

Part Four: Printing and Mailing Tax Forms

26 States Responding Both External

Frequency of Address Updates

All States Responding to Survey Send Envelopes or Labels With Some Tax Forms.

Conclusion: Shift in Technology to 2-D barcode and Form ID Implementation of Automated Processing Results in employee cost savings Most states gradually add tax types to automated equipment