2009_MC Tax_NN1 Filing_NN1 Season_NNT1 :_: IRS_NN1 Met_VVD Many_DA2 2009_MC Goals_NN2 ,_, but_CCB Telephone_VV0 Access_NN1 Remained_VVD Low_NP1 ,_, and_CC Taxpayer_NN1 Service_NN1 and_CC Enforcement_NN1 Could_VM Be_VBI Improved_VVN The_AT Internal_JJ Revenue_NN1 Service_NN1 's_GE (_( IRS_NN1 )_) 2009_MC filing_NN1 season_NNT1 is_VBZ an_AT1 enormous_JJ and_CC critical_JJ undertaking_NN1 ._. 
Last_MD filing_NN1 season_NNT1 ,_, IRS_NN1 processed_VVN over_RG 140_MC million_NNO individual_JJ income_NN1 tax_NN1 returns_NN2 and_CC issued_VVN over_RG 100_MC million_NNO refunds_NN2 ._. 
IRS_NN1 also_RR answered_JJ tens_MC2 of_IO millions_NNO2 of_IO taxpayer_NN1 questions_NN2 through_II telephone_NN1 ,_, Web_NN1 site_NN1 ,_, and_CC face-to-face_JJ assistance_NN1 ._. 
During_II each_DD1 of_IO the_AT last_MD two_MC filing_NN1 seasons_NNT2 ,_, IRS_NN1 has_VHZ been_VBN called_VVN upon_II to_TO quickly_RR implement_VVI complex_JJ tax_NN1 law_NN1 changes_NN2 ,_, including_II economic_JJ stimulus_NN1 policies_NN2 that_CST have_VH0 resulted_VVN in_II unexpected_JJ increases_NN2 in_II call_NN1 volume_NN1 and_CC created_VVD new_JJ taxpayer_NN1 compliance_NN1 challenges_NN2 and_CC workload_NN1 ._. 
IRS_NN1 's_GE filing_NN1 season_NNT1 performance_NN1 also_RR has_VHZ indirect_JJ effects_NN2 on_II taxpayers_NN2 ._. 
For_REX21 example_REX22 ,_, timely_JJ issuance_NN1 of_IO refunds_NN2 can_VM reduce_VVI taxpayer_NN1 demand_NN1 for_IF refund_NN1 anticipation_NN1 loans_NN2 (_( RAL_NP1 )_) ,_, which_DDQ are_VBR short-term_JJ ,_, often_RR high-interest_JJ loans_NN2 offered_VVN by_II tax_NN1 preparers_NN2 or_CC banks_NN2 that_CST allow_VV0 taxpayers_NN2 to_TO receive_VVI their_APPGE refund_NN1 cash_NN1 quickly_RR ,_, sometimes_RT within_II the_AT same_DA day_NNT1 ._. 
The_AT filing_NN1 season_NNT1 is_VBZ also_RR the_AT time_NNT1 IRS_NN1 begins_VVZ its_APPGE enforcement_NN1 efforts_NN2 with_IW its_APPGE math_NN1 error_NN1 program_NN1 ,_, in_II which_DDQ IRS_NN1 uses_VVZ its_APPGE computers_NN2 to_TO identify_VVI errors_NN2 during_II processing_NN1 ,_, such_II21 as_II22 calculation_NN1 mistakes_NN2 or_CC omitted_VVN or_CC inconsistent_JJ entries_NN2 ._. 
Where_CS IRS_NN1 has_VHZ the_AT statutory_JJ authority_NN1 ,_, also_RR known_VVN as_II math_NN1 error_NN1 authority_NN1 (_( MEA_NP1 )_) ,_, it_PPH1 corrects_VVZ certain_JJ errors_NN2 before_II interest_NN1 is_VBZ owed_VVN by_II taxpayers_NN2 ,_, and_CC helps_VVZ taxpayers_NN2 and_CC IRS_NN1 avoid_VV0 burdensome_JJ audits_NN2 ._. 
Earlier_RRR this_DD1 year_NNT1 ,_, we_PPIS2 provided_VVD an_AT1 interim_JJ assessment_NN1 of_IO IRS_NN1 's_GE 2009_MC filing_NN1 season_NNT1 performance_NN1 ,_, made_VVD recommendations_NN2 to_TO improve_VVI IRS_NN1 's_GE 2010_MC filing_NN1 season_NNT1 performance_NN1 ,_, and_CC made_VVD suggestions_NN2 to_II Congress_NN1 to_TO better_RRR ensure_VVI compliance_NN1 ,_, when_CS tax_NN1 returns_NN2 are_VBR being_VBG processed_VVN ,_, with_IW the_AT first-time_JJ homebuyer_NN1 tax_NN1 credit_NN1 ._. 
In_II31 light_II32 of_II33 its_APPGE importance_NN1 ,_, the_AT Chair_NN1 and_CC Ranking_VVG Member_NN1 of_IO Subcommittee_NN1 on_II Oversight_NP1 ,_, Committee_NN1 on_II Ways_NN2 and_CC Means_NN ,_, House_NN1 of_IO Representatives_NN2 ,_, and_CC the_AT Chair_NN1 and_CC Ranking_VVG Members_NN2 of_IO the_AT Senate_NN1 Finance_NN1 Committee_NN1 asked_VVD us_PPIO2 to_TO provide_VVI an_AT1 overall_JJ assessment_NN1 of_IO IRS_NN1 's_GE 2009_MC filing_NN1 season_NNT1 performance_NN1 ._. 
For_IF this_DD1 report_NN1 ,_, our_APPGE objectives_NN2 were_VBDR to_II 1_MC1 ._. 
assess_VV0 IRS_NN1 's_GE filing_NN1 season_NNT1 performance_NN1 compared_VVN to_II 2009_MC goals_NN2 and_CC prior_JJ years_NNT2 '_GE performance_NN1 ;_; 2._MC identify_VV0 opportunities_NN2 for_IF IRS_NN1 to_TO reduce_VVI taxpayers_NN2 '_GE reliance_NN1 on_II RALs_NN2 and_CC Refund_NN1 Anticipation_NN1 Checks_NN2 (_( RAC_NP1 )_) ;_; and_CC 3._MC identify_VV0 opportunities_NN2 ,_, based_VVN on_II prior_JJ GAO_NP1 reports_VVZ such_II21 as_II22 those_DD2 on_II higher_JJR education_NN1 tax_NN1 benefits_NN2 ,_, for_IF IRS_NN1 to_TO enhance_VVI taxpayer_NN1 compliance_NN1 during_II returns_NN2 processing_VVG ._. 
To_TO meet_VVI our_APPGE three_MC objectives_NN2 ,_, we_PPIS2 took_VVD the_AT following_JJ steps_NN2 ._. 
Reviewed_VVN and_CC analyzed_JJ IRS_NN1 reports_NN2 ,_, testimonies_NN2 ,_, budget_NN1 submissions_NN2 ,_, and_CC other_JJ documents_NN2 and_CC data_NN ,_, including_II performance_NN1 and_CC workload_NN1 data_NN ,_, and_CC compared_VVD these_DD2 to_II IRS_NN1 's_GE goals_NN2 and_CC past_JJ performance_NN1 to_TO identify_VVI trends_NN2 and_CC anomalies_NN2 in_II performance_NN1 ._. 
We_PPIS2 also_RR tested_VVD for_IF statistically_RR significant_JJ differences_NN2 between_II annual_JJ performance_NN1 rates_NN2 based_VVN on_II IRS_NN1 sample_NN1 data_NN ._. 
Observed_JJ operations_NN2 at_II the_AT Joint_JJ Operations_NN2 Center_NN1 (_( which_DDQ manages_VVZ IRS_NN1 's_GE telephone_NN1 services_NN2 )_) and_CC IRS_NN1 's_GE walk-in_NN1 sites_NN2 in_II Atlanta_NP1 ,_, Ga_NP1 ._. 
and_CC Baltimore_NP1 ,_, Md._NNA and_CC a_AT1 volunteer_NN1 site_NN1 in_II Washington_NP1 ,_, D.C._NP1 We_PPIS2 selected_VVD these_DD2 particular_JJ offices_NN2 for_IF a_AT1 variety_NN1 of_IO reasons_NN2 ,_, including_II the_AT location_NN1 of_IO key_JJ IRS_NN1 managers_NN2 ;_; Analyzed_JJ staffing_NN1 data_NN for_IF paper_NN1 and_CC electronic_JJ filing_NN1 ,_, telephone_NN1 assistance_NN1 ,_, and_CC walk-in_NN1 assistance_NN1 ._. 
Reviewed_VVN information_NN1 from_II other_JJ organizations_NN2 who_PNQS compile_VV0 information_NN1 pertinent_JJ to_II our_APPGE objective_NN1 ,_, such_II21 as_II22 Keynote_NN1 Systems_NN2 ,_, which_DDQ evaluates_VVZ Internet_NN1 performance_NN1 ._. 
Reviewed_VVN IRS_NN1 reports_NN2 and_CC analyzed_JJ IRS_NN1 data_NN on_II RALs_NN2 and_CC RACs_NP2 to_TO identify_VVI trends_NN2 and_CC opportunities_NN2 to_TO reduce_VVI taxpayers_NN2 '_GE reliance_NN1 on_II them_PPHO2 ._. 
Reviewed_VVN IRS_NN1 data_NN and_CC analyzed_VVN methods_NN2 IRS_NN1 currently_RR employs_VVZ to_TO identify_VVI taxpayer_NN1 compliance_NN1 with_IW eligibility_NN1 requirement_NN1 for_IF higher_JJR education_NN1 tax_NN1 benefits_NN2 ._. 
Reviewed_VVN MEA-related_JJ statutes_NN2 to_TO determine_VVI IRS_NN1 's_GE existing_JJ and_CC possible_JJ new_JJ authorities_NN2 ._. 
Interviewed_VVN IRS_NN1 officials_NN2 about_II current_JJ operations_NN2 ,_, trends_NN2 ,_, and_CC significant_JJ factors_NN2 and_CC initiatives_NN2 that_DD1 affected_JJ performance_NN1 ;_; efforts_NN2 to_TO reduce_VVI reliance_NN1 on_II RALs_NN2 and_CC RACs_NP2 ;_; and_CC monitoring_NN1 and_CC oversight_NN1 of_IO compliance_NN1 issues_NN2 ,_, including_II higher_JJR education_NN1 credit_NN1 claims_NN2 ._. 
Interviewed_VVN representatives_NN2 of_IO some_DD of_IO the_AT larger_JJR private_JJ and_CC nonprofit_JJ organizations_NN2 that_CST prepare_VV0 tax_NN1 returns_NN2 ,_, including_II H_ZZ1 &R;_NULL Block_NN1 and_CC trade_NN1 organizations_NN2 that_CST represent_VV0 both_RR individual_JJ paid_JJ preparers_NN2 ,_, tax_NN1 preparation_NN1 companies_NN2 ,_, and_CC professional_JJ associations_NN2 ,_, including_II the_AT American_JJ Institute_NN1 of_IO Certified_JJ Public_JJ Accountants_NN2 ._. 
Reviewed_VVN Treasury_NN1 Inspector_NNB General_NP1 for_IF Tax_NN1 Administration_NN1 (_( TIGTA_NP1 )_) reports_NN2 and_CC interviewed_VVD a_AT1 TIGTA_NN1 official_NN1 about_II IRS_NN1 's_GE performance_NN1 and_CC initiatives_NN2 ._. 
Reviewed_VVN prior_RR GAO_NP1 reports_NN2 and_CC followed_VVN up_RP on_II our_APPGE recommendations_NN2 made_VVN in_II filing_VVG season_NNT1 and_CC related_JJ reports_NN2 ._. 
This_DD1 report_NN1 discusses_VVZ numerous_JJ filing_NN1 season_NNT1 performance_NN1 measures_NN2 and_CC data_NN covering_VVG the_AT quality_NN1 ,_, accessibility_NN1 ,_, and_CC timeliness_NN1 of_IO IRS_NN1 's_GE services_NN2 that_CST ,_, based_VVN on_II our_APPGE prior_JJ work_NN1 ,_, we_PPIS2 consider_VV0 sufficiently_RR objective_JJ and_CC reliable_JJ for_IF purposes_NN2 of_IO this_DD1 report_NN1 ._. 
To_II the_AT extent_NN1 possible_JJ ,_, we_PPIS2 corroborated_VVD information_NN1 from_II interviews_NN2 with_IW documentation_NN1 and_CC data_NN and_CC where_RRQ not_XX possible_JJ ,_, we_PPIS2 attribute_VV0 the_AT information_NN1 to_II IRS_NN1 officials_NN2 in_II our_APPGE report_NN1 ._. 
We_PPIS2 reviewed_VVD IRS_NN1 documentation_NN1 ,_, interviewed_VVD IRS_NN1 officials_NN2 about_II computer_NN1 systems_NN2 and_CC data_NN limitations_NN2 ,_, and_CC compared_VVD those_DD2 results_NN2 to_II our_APPGE standards_NN2 of_IO data_NN reliability_NN1 ._. 
Data_NN limitations_NN2 are_VBR discussed_VVN where_CS appropriate_JJ ._. 
Finally_RR ,_, we_PPIS2 conducted_VVD our_APPGE work_NN1 primarily_RR at_II IRS_NN1 headquarters_NN including_VVG at_II the_AT Small_NP1 Business/Self-Employed_FU Division_NN1 in_II Washington_NP1 ,_, D.C._NP1 ,_, and_CC the_AT Wage_NN1 and_CC Investment_NN1 Division_NN1 headquarters_NN in_II Atlanta_NP1 ,_, Ga_NP1 ._. 
as_II31 well_II32 as_II33 the_AT other_JJ sites_NN2 mentioned_VVD earlier_RRR ._. 
We_PPIS2 conducted_VVD this_DD1 performance_NN1 audit_NN1 from_II January_NPM1 2009_MC through_II December_NPM1 2009_MC in_II31 accordance_II32 with_II33 generally_RR accepted_JJ government_NN1 auditing_NN1 standards_NN2 ._. 
Those_DD2 standards_NN2 require_VV0 that_CST we_PPIS2 plan_VV0 and_CC perform_VV0 the_AT audit_NN1 to_TO obtain_VVI sufficient_JJ ,_, appropriate_JJ evidence_NN1 to_TO provide_VVI a_AT1 reasonable_JJ basis_NN1 for_IF our_APPGE findings_NN2 and_CC conclusions_NN2 based_VVN on_II our_APPGE audit_NN1 objectives_NN2 ._. 
We_PPIS2 believe_VV0 that_CST the_AT evidence_NN1 obtained_VVN provides_VVZ a_AT1 reasonable_JJ basis_NN1 for_IF our_APPGE findings_NN2 and_CC conclusions_NN2 based_VVN on_II our_APPGE audit_NN1 objectives_NN2 ._. 
We_PPIS2 received_VVD technical_JJ and_CC written_JJ comments_NN2 on_II a_AT1 draft_NN1 of_IO this_DD1 report_NN1 ,_, which_DDQ we_PPIS2 addressed_VVD ._. 
A_AT1 letter_NN1 from_II the_AT IRS_NN1 Deputy_NN1 Commissioner_NN1 for_IF Services_NN2 and_CC Enforcement_NN1 providing_VVG those_DD2 comments_NN2 is_VBZ reprinted_VVN in_II appendix_NN1 I._NP1 In_II that_DD1 letter_NN1 ,_, the_AT Deputy_NN1 Commissioner_NN1 explicitly_RR agreed_VVN with_IW five_MC of_IO our_APPGE recommendations_NN2 and_CC described_VVD the_AT steps_NN2 IRS_NN1 is_VBZ taking_VVG with_II31 respect_II32 to_II33 our_APPGE two_MC other_JJ recommendations_NN2 ._. 
Most_DAT taxpayers_NN2 file_VV0 their_APPGE individual_JJ income_NN1 tax_NN1 returns_VVZ electronically_RR ,_, although_CS millions_NNO2 still_RR mail_VV0 paper_NN1 returns_NN2 ._. 
Compared_VVN to_II paper_NN1 ,_, electronic_JJ filing_NN1 allows_VVZ taxpayers_NN2 to_TO receive_VVI refunds_NN2 faster_RRR ,_, is_VBZ less_RGR prone_JJ to_II transcription_NN1 and_CC other_JJ errors_NN2 ,_, and_CC provides_VVZ IRS_NN1 with_IW significant_JJ cost_NN1 savings_NN2 ._. 
Last_MD year_NNT1 we_PPIS2 reported_VVD that_DD1 IRS_NN1 estimated_VVD it_PPH1 used_VVD 39_MC percent_NNU fewer_DAR staff_NN years_NNT2 for_IF processing_VVG tax_NN1 returns_NN2 in_II 2007_MC than_CSN in_II 1999_MC for_IF a_AT1 savings_NN2 of_IO $85_NNU million_NNO ._. 
The_AT Free_JJ File_NN1 program_NN1 provides_VVZ taxpayers_NN2 below_II an_AT1 income_NN1 ceiling_NN1 with_IW access_NN1 to_II a_AT1 consortium_NN1 of_IO tax_NN1 preparation_NN1 companies_NN2 that_CST offer_VV0 free_JJ on-line_JJ tax_NN1 preparation_NN1 and_CC filing_VVG services_NN2 for_IF qualifying_JJ taxpayers_NN2 ._. 
CADE_NP1 ,_, part_NN1 of_IO IRS_NN1 's_GE high-risk_JJ Business_NN1 System_NN1 Modernization_NN1 program_NN1 (_( BSM_NP1 )_) ,_, is_VBZ intended_VVN to_TO eventually_RR replace_VVI IRS_NN1 's_GE antiquated_JJ Master_NN1 File_NN1 legacy_NN1 processing_NN1 system_NN1 and_CC facilitate_VV0 faster_JJR refund_NN1 processing_NN1 and_CC provide_VV0 IRS_NN1 with_IW more_RGR up-to-date_JJ account_NN1 information_NN1 ._. 
Primarily_RR through_II its_APPGE telephone_NN1 ,_, Web_NN1 site_NN1 ,_, and_CC ,_, to_II a_AT1 much_RR lesser_JJ extent_NN1 ,_, through_II its_APPGE face-to-face_JJ assistance_NN1 ,_, IRS_NN1 also_RR provides_VVZ tax_NN1 law_NN1 and_CC account_VV0 assistance_NN1 ,_, limited_JJ return_NN1 preparation_NN1 ,_, tax_NN1 forms_NN2 and_CC publications_NN2 ,_, and_CC outreach_NN1 and_CC education_NN1 ._. 
IRS_NN1 staff_NN provides_VVZ assistance_NN1 at_II 401_MC walk-in_JJ sites_NN2 where_RRQ taxpayers_NN2 can_VM receive_VVI basic_JJ tax_NN1 law_NN1 assistance_NN1 ,_, receive_VV0 assistance_NN1 with_IW their_APPGE accounts_NN2 ,_, and_CC have_VH0 returns_NN2 prepared_VVN by_II IRS_NN1 if_CS their_APPGE annual_JJ income_NN1 is_VBZ $42,000_NNU or_CC less_RRR ._. 
IRS_NN1 also_RR has_VHZ volunteer_NN1 partners_NN2 that_CST staff_NN over_RG 12,000_MC sites_NN2 ,_, which_DDQ help_VV0 serve_VVI traditionally_RR underserved_JJ taxpayer_NN1 segments_NN2 ,_, including_II elderly_JJ ,_, low-income_NN1 ,_, and_CC disabled_JJ taxpayers_NN2 ,_, and_CC taxpayers_NN2 with_IW limited_JJ English_JJ proficiency_NN1 ._. 
IRS_NN1 developed_VVD the_AT Taxpayer_NN1 Assistance_NN1 Blueprint_NN1 (_( TAB_NN1 )_) ,_, a_AT1 5-year_JJ plan_NN1 designed_VVN to_TO assist_VVI the_AT agency_NN1 in_II providing_VVG ,_, evaluating_VVG ,_, and_CC improving_JJ taxpayer_NN1 services_NN2 at_II lower_JJR cost_NN1 ._. 
TAB_VV0 also_RR provided_VVN estimates_NN2 of_IO the_AT costper-service_JJ contact_NN1 for_IF different_JJ types_NN2 of_IO taxpayer_NN1 services_NN2 and_CC conducted_VVD preliminary_JJ research_NN1 about_II the_AT effect_NN1 of_IO taxpayer_NN1 service_NN1 on_II compliance_NN1 ._. 
IRS_NN1 delivered_VVD an_AT1 update_NN1 of_IO TAB_NN1 to_II Congress_NN1 in_II October_NPM1 2009_MC ._. 
Millions_NNO2 of_IO taxpayers_NN2 who_PNQS do_VD0 not_XX want_VVI to_TO wait_VVI for_IF their_APPGE tax_NN1 refunds_NN2 from_II IRS_NN1 choose_VV0 to_TO obtain_VVI RALs_NN2 ,_, which_DDQ are_VBR offered_VVN by_II paid_JJ preparers_NN2 or_CC banks_NN2 to_II taxpayers_NN2 in_II31 connection_II32 with_II33 federal_JJ and/or_CC state_VV0 tax_NN1 refunds_NN2 ._. 
RALs_NN2 are_VBR short-term_JJ ,_, high_JJ interest_NN1 rate_NN1 bank_NN1 loans_NN2 ._. 
We_PPIS2 found_VVD that_CST the_AT annual_JJ percentage_NN1 rate_NN1 on_II RALs_NN2 can_VM be_VBI over_RG 500_MC percent_NNU ,_, RALs_NN2 offer_VV0 taxpayers_NN2 the_AT benefit_NN1 of_IO receiving_VVG cash_NN1 quickly_RR based_VVN on_II an_AT1 expected_JJ refund_NN1 ._. 
Combined_VVN with_IW tax_NN1 preparation_NN1 fees_NN2 ,_, RALs_NN2 may_VM considerably_RR reduce_VVI a_AT1 taxpayer_NN1 's_GE refund_NN1 ._. 
However_RR ,_, RALs_NN2 remain_VV0 popular_JJ ,_, especially_RR among_II low-income_JJ taxpayers_NN2 ._. 
RAL_JJ providers_NN2 might_VM also_RR offer_VVI RACs_NP2 ,_, which_DDQ are_VBR not_XX loans_NN2 ,_, but_CCB instead_RR are_VBR a_AT1 refund_NN1 delivery_NN1 option_NN1 where_CS IRS_NN1 direct_JJ deposits_NN2 a_AT1 refund_NN1 into_II a_AT1 temporary_JJ account_NN1 set_VVN up_RP by_II a_AT1 financial_JJ institution_NN1 ,_, which_DDQ withdraws_VVZ the_AT tax_NN1 return_NN1 preparation_NN1 fee_NN1 ,_, and_CC then_RT makes_VVZ the_AT remaining_JJ funds_NN2 available_JJ to_II the_AT taxpayer_NN1 ._. 
RALs_NN2 and_CC RACs_NP2 allow_VV0 taxpayers_NN2 to_TO pay_VVI return_JJ preparation_NN1 and_CC fees_NN2 out_II21 of_II22 their_APPGE refunds_NN2 ._. 
IRS_NN1 uses_VVZ its_APPGE many_DA2 tools_NN2 to_TO identify_VVI and_CC correct_JJ noncompliance_NN1 ,_, whether_CSW intentional_JJ or_CC unintentional_JJ ._. 
Over_II the_AT years_NNT2 ,_, Congress_NN1 granted_VVD IRS_NN1 statutory_JJ authority_NN1 to_TO cover_VVI specific_JJ areas_NN2 so_CS21 that_CS22 the_AT agency_NN1 could_VM correct_VVI tax_NN1 return_NN1 errors_NN2 during_II processing_NN1 ,_, including_II calculation_NN1 errors_NN2 and_CC entries_NN2 that_CST are_VBR inconsistent_JJ or_CC exceed_VV0 statutory_JJ limits_NN2 ,_, without_IW having_VHG to_TO issue_VVI the_AT taxpayer_NN1 a_AT1 statutory_JJ notice_NN1 of_IO deficiency_NN1 (_( see_VV0 app_NN1 ._. 
II_MC for_IF details_NN2 )_) ._. 
Math_NN1 error_NN1 checks_NN2 are_VBR automated_JJ and_CC low-cost_JJ relative_II21 to_II22 audits_NN2 ._. 
Prompt_JJ compliance_NN1 checks_NN2 ,_, such_II21 as_II22 math_NN1 error_NN1 checks_NN2 ,_, increase_VV0 the_AT likelihood_NN1 of_IO IRS_NN1 collecting_VVG all_DB or_CC part_NN1 of_IO the_AT amount_NN1 owed_VVD ._. 
However_RR ,_, IRS_NN1 must_VM be_VBI granted_VVN MEA_NN1 from_II Congress_NN1 by_II statute_NN1 for_IF specific_JJ purposes_NN2 ,_, and_CC as_CSA noted_VVN above_RL ,_, we_PPIS2 recently_RR suggested_VVN areas_NN2 where_RRQ IRS_NN1 could_VM benefit_VVI from_II new_JJ authorities_NN2 ._. 
IRS_NN1 gets_VVZ most_DAT of_IO the_AT information_NN1 returns_VVZ during_II the_AT filing_NN1 season_NNT1 ._. 
These_DD2 returns_NN2 are_VBR provided_VVN by_II third_MD parties_NN2 ,_, such_II21 as_II22 employers_NN2 ,_, banks_NN2 ,_, or_CC educational_JJ institutions_NN2 ,_, file_NN1 returns_VVZ with_IW IRS_NN1 and_CC taxpayers_NN2 that_CST provide_VV0 information_NN1 on_II a_AT1 variety_NN1 of_IO taxpayer_NN1 transactions_NN2 ._. 
IRS_NN1 tries_VVZ to_TO match_VVI information_NN1 from_II the_AT information_NN1 returns_NN2 filed_VVN by_II third_MD parties_NN2 against_II taxpayers_NN2 '_GE income_NN1 tax_NN1 returns_VVZ to_TO see_VVI if_CSW taxpayers_NN2 have_VH0 filed_VVN returns_NN2 and_CC reported_VVN their_APPGE income_NN1 and_CC expenses_NN2 ._. 
This_DD1 approach_NN1 tends_VVZ to_TO lead_VVI to_II high_JJ levels_NN2 of_IO taxpayer_NN1 compliance_NN1 ._. 
As_II21 of_II22 October_NPM1 2_MC ,_, 2009_MC ,_, IRS_NN1 processed_VVD 139_MC million_NNO individual_JJ income_NN1 tax_NN1 returns_NN2 ._. 
As_CSA shown_VVN in_II table_NN1 1_MC1 ,_, 94_MC million_NNO taxpayers_NN2 (_( 68_MC percent_NNU )_) electronically_RR filed_VVD their_APPGE returns_NN2 compared_VVN to_II 88_MC million_NNO (_( 62_MC percent_NNU )_) last_MD year_NNT1 ,_, excluding_VVG the_AT 9_MC million_NNO stimulus-only_JJ returns_NN2 ._. 
Electronic_JJ filing_NN1 provides_VVZ IRS_NN1 with_IW significant_JJ cost_NN1 savings_NN2 --_JJ IRS_NN1 estimates_VVZ the_AT cost_NN1 savings_NN2 of_IO electronic_JJ filing_NN1 to_TO be_VBI $2.71_NNU per_II return_NN1 over_II the_AT costs_NN2 in_II 2008_MC ._. 
It_PPH1 helps_VVZ taxpayers_NN2 to_TO receive_VVI their_APPGE refunds_NN2 faster_RRR and_CC aids_NN2 IRS_NN1 in_II achieving_VVG the_AT electronic_JJ filing_NN1 goal_NN1 of_IO having_VHG 80_MC percent_NNU of_IO all_DB federal_JJ tax_NN1 and_CC information_NN1 returns_NN2 filed_VVD electronically_RR by_II 2012_MC ._. 
IRS_NN1 issued_VVD approximately_RR 109_MC million_NNO refunds_NN2 ,_, up_II 4_MC million_NNO from_II last_MD year_NNT1 ,_, for_IF $298_NNU billion_NNO ._. 
Approximately_RR 66_MC percent_NNU of_IO all_DB refunds_NN2 were_VBDR directly_RR deposited_VVN ,_, 9_MC percent_NNU more_DAR than_CSN last_MD year_NNT1 ._. 
This_DD1 increase_NN1 is_VBZ important_JJ ,_, because_CS direct_JJ deposit_NN1 is_VBZ faster_JJR ,_, more_RGR convenient_JJ for_IF taxpayers_NN2 ,_, and_CC less_RGR expensive_JJ for_IF IRS_NN1 than_CSN mailing_VVG paper_NN1 checks_NN2 ._. 
IRS_NN1 attributes_VVZ the_AT increase_NN1 in_II electronic_JJ filing_NN1 ,_, in_RR21 part_RR22 ,_, to_II a_AT1 19_MC percent_NNU increase_NN1 in_II people_NN filing_VVG from_II home_NN1 computers_NN2 ,_, which_DDQ may_VM be_VBI related_VVN to_II the_AT elimination_NN1 of_IO separate_JJ fees_NN2 for_IF electronic_JJ filing_NN1 ._. 
According_II21 to_II22 IRS_NN1 ,_, the_AT elimination_NN1 of_IO fees_NN2 by_II some_DD paid_JJ preparers_NN2 also_RR contributed_VVN to_II the_AT decline_NN1 in_II the_AT Free_JJ File_NN1 program_NN1 --_NN1 as_II21 of_II22 September_NPM1 20_MC ,_, 2009_MC ,_, the_AT number_NN1 of_IO taxpayers_NN2 who_PNQS filed_VVD through_II Free_JJ File_NN1 decreased_VVN to_II 3_MC million_NNO ,_, down_RP 37_MC percent_NNU from_II last_MD year_NNT1 ._. 
IRS_NN1 also_RR attributed_VVN part_NN1 of_IO the_AT decrease_NN1 to_II the_AT migration_NN1 of_IO taxpayers_NN2 to_II other_JJ free_JJ offers_NN2 in_II the_AT marketplace_NN1 ._. 
The_AT Free_JJ File_NN1 program_NN1 offered_VVD a_AT1 new_JJ option_NN1 this_DD1 year_NNT1 ,_, fillable_JJ forms_NN2 ,_, that_CST allow_VV0 taxpayers_NN2 to_TO download_VVI forms_NN2 from_II IRS_NN1 and_CC fill_VVI them_PPHO2 in_RP on_II a_AT1 home_NN1 computer_NN1 without_IW using_VVG tax_NN1 preparation_NN1 software_NN1 ._. 
About_RG 270,000_MC taxpayers_NN2 used_VVD this_DD1 option_NN1 ._. 
Finally_RR ,_, IRS_NN1 met_VVN or_CC exceeded_VVD its_APPGE goals_NN2 for_IF six_MC out_II21 of_II22 eight_MC of_IO the_AT processing_NN1 measures_NN2 (_( see_VV0 app_NN1 ._. 
II_MC for_IF details_NN2 )_) ._. 
For_REX21 example_REX22 ,_, IRS_NN1 exceeded_VVD its_APPGE goals_NN2 for_IF refund_NN1 timeliness_NN1 ,_, and_CC deposit_VV0 timeliness_NN1 and_CC accuracy_NN1 ._. 
The_AT one_MC1 measure_NN1 where_CS performance_NN1 was_VBDZ significantly_RR below_II IRS_NN1 's_GE goal_NN1 and_CC last_MD year_NNT1 's_GE level_NN1 was_VBDZ the_AT correspondence_NN1 error_NN1 rate_NN1 ,_, which_DDQ is_VBZ the_AT percentage_NN1 of_IO incorrect_JJ notices_NN2 and_CC letters_NN2 issued_VVN to_II taxpayers_NN2 ._. 
According_II21 to_II22 IRS_NN1 officials_NN2 ,_, this_DD1 resulted_VVD from_II a_AT1 high_JJ number_NN1 of_IO erroneous_JJ notices_NN2 sent_VVN to_II taxpayers_NN2 during_II the_AT filing_NN1 season_NNT1 related_VVN to_II the_AT recovery_NN1 rebate_NN1 credit_NN1 ._. 
In_II our_APPGE interim_JJ report_NN1 ,_, we_PPIS2 noted_VVD that_CST millions_NNO2 of_IO tax_NN1 returns_NN2 had_VHD these_DD2 types_NN2 of_IO errors_NN2 ,_, which_DDQ resulted_VVD in_II a_AT1 delay_NN1 in_II refund_NN1 timeliness_NN1 from_II 1_MC1 day_NNT1 to_II a_AT1 week_NNT1 ._. 
