1. Massachusetts: E-Government Initiatives Frederick A. Laskey Commissioner

2. Electronic Filing for Individual Taxpayers Practitioner E-File Practitioner E-File 1993 Telefile 1995 PC File 1995 Online Filing 1998

3. Telefile Filing income taxes over touch-tone phone 8-minute call 4-day refund turnaround

4. Practitioner E-File Up 37% over 1999 Practitioners use commercial software to electronically file returns on behalf of taxpayers

5. PC File Up 48% over 1999 Taxpayers use DOR’s free PC File software to prepare and file their state return

6. Online Filing Has QUADRUPLED since 1999 Taxpayers use commercial web sites or software to electronically file their state income tax return

7. E-Filing Overall Has nearly QUADRUPLED since 1995 222,000 478,000 512,000 625,500 681,000 816,000

8. Refunds Issued by Direct Deposit Up 16% over 1999 230,000 198,084 99,456 15,000

9. Credit Card Payments Up 65% over 1999 $ Millions

10. E-Government means better service to taxpayers…...Refunds issued 43% faster since 1996 Refund turnaround (days), 1996-2000

11. …And calls answered 84% faster since 1996 Call answer times in seconds, 1996-2000

12. However... Income Tax Returns are only a Portion of the Workload However... Income Tax Returns are only a Portion of the Workload

13. What about business taxpayers?

14. EFT Payments Since FY93 (In Billions)

15. Introducing… The Bay State Business Connection baystatebiz.com

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22. 40,000 Business Registrations Annually 0 10,000 20,000 30,000 40,000 Registrations 40,000 50,000

27. 2.2 Million Sales and Withholding Returns Filed Annually 0.5 1.0 1.5 2.0 Millions 2.5 2.2 Million

32. Ingredients for Success Future success will hinge on 3 key ingredients: Increased interactivityIncreased interactivity Customer focusCustomer focus Marketing, marketing, marketingMarketing, marketing, marketing

33. Timeline for Enhancements March 2000 Online business registration Downloadable sales and withholding software Information, survey, e-mail support

34. Timeline for Enhancements March 2000 May 2000 Online new hire reporting

35. Timeline for Enhancements March 2000 May 2000 January 2001 Sales, Meals and Room Occupancy Web filing E-File for corporations and partnerships Corporate and individual estimated Web payments

36. Timeline for Enhancements March 2000 May 2000 January 2001 September 2001 Single File: oneWithholding, unemployment, wage reporting, in one quarterly form Wage reporting: Web form for small employers, FTP for large employers

37. Withholding Wage Reporting Unemployment Insurance SINGLE FILE

38. Massachusetts has 179,000 employers. They file about 3 million returns annually. 1.56 M 2.99 M 716 K SINGLE FILE716,000. With SINGLE FILE that number will plummet to 716,000. 716 K Single File

39. What’s Needed: What’s Needed: Combined database of employers (Department of Revenue & Department of Employment and Training) Legislation to change filing due dates Promote EFT for all businesses

40. Single File What are the benefits: What are the benefits: Up to 76% reduction in returns filed File 1 return for 3 requirements Deal with 1 agency for 3 requirements

41. The End