IRS to ramp up CADE processing




The IRS plans to expand the use of its new taxpayer database
to process returns, the agency's CIO said today.

The next version of the Customer Account Data Engine will
process about 2.5 million 1040EZ returns during the 2005 tax
season beginning in January. Those returns will be for
single filers who have had no change of address and owe no
taxes. In all, upwards of 25 million taxpayers are eligible
to file 1040EZ returns.

The IRS began using CADE for a limited number of simple tax
returns in July.

The 2.5 million "number will double exponentially in 2006
and the year after that," said IRS CIO Todd Grams at a
conference sponsored by the Council for Electronic Revenue
Communication Advancement in Arlington, Va.

Taxpayers whose returns are processed through CADE will
receive their refunds up to one week sooner. CADE transmits
data from returns daily while the legacy Master File tape
system it will replace transmits data only weekly.

The IRS also recently released the initial version of its
Custodial Accounting Project, which provides control and
reporting capabilities related to the tax returns processed
through CADE. CAP extracts taxpayer account information from
the Master File for the Taxpayer Account Subledger, a data
warehouse of taxpayer data.

By Mary Mosquera
GCN Staff


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