2. December 1998 Forms Automation Processing Survey

3. tates Participating in Survey

4. Part One: General Questions

5. 17 States Responding

7. Effect on Number of Employees 14 States Responding

8. Taxpayer Education Efforts NO YES 19 States Responding

9. Part Two: Software Developer Approval Process

11. Method of Approving Software Developers 24 States Responding

12. Tax Form Requirements for Reproduction 24 States Responding

13. Tax Forms Permitted to be Reproduced 24 States Responding

14. Required Approvals For New Editions No Approval Required Approval Required

15. Number of Employees Authorized to Approve Substitute Tax Forms 25 States Responding 1-2 5-6 3-4

16. Recognition of Approved Software Developers

17. Defining Software Developer Forms 14 States Responding

18. YES NO

21. 22 States Responding

22. Part Three: Equipment and Technology

23. 17 States Responding

24. 13 States Responding

25. Use of 2-D Barcode

26. 22 States Responding

27. 24 States Responding

28. 25 States Responding

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

30. Part Four: Printing and Mailing Tax Forms

31. 26 States Responding Both External

33. Frequency of Address Updates

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

35. 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