IRS Electronic Data for States

Rod Sterling Internal Revenue Service

Washington DC

NESTOA 2011 ConferenceWilmington, Delaware

September 2011

New IRS Organization• GLD is now part of Privacy, Gov’t.

Liaison & Disclosure (PGLD)• Includes privacy, information protection,

incident management• GLD formerly part of SB Operating Div. • Change invisible to customers

Main Topics• GLDEP Extracts • e-Services Suite of Products• Communication & Support

GLDEP Extracts (cumulative files)

versus

E-Services Products (online services)

GLDEP Extracts• Data extracted from IRS master

files and other databases• Cumulative data: age 1 to 24

months• Shared to assist with tax admin• aka MF extracts, bulk extracts,

tape extracts, disclosure reports

e-Services Products• Suite of products designed for tax

professionals & trading partners to do business with IRS electronically

• Data is real-time or near• Uses a secure online session

GLDEP Extracts

• File delivery • Cumulative data• Includes:

• Indiv. & bus. returns• Information returns • Under-reporter data• Levy sources• Audit reports

• Delivery via SDT

• Need digital certificate

e-Services

• User services (interactive)• Real time data (or near)• Includes:

• TDS• TIN Matching• PTIN registration• & more

• Secure online session

• Access: user name, password & PIN

GLDEP Extracts• Governmental Liaison Data Exchange

Program (GLDEP)• Annual enrollment required• 32 different files/sorts• Must meet criteria to enroll

• Non-GLDEP files authorized by MOU • Secure electronic delivery via SDT

Extract Use Examples

• Identify non-filers• Identify levy sources• Help with audit selection• Leads for sales tax non-compliance• Identify non-compliant payers • Determine discrepancies between

federal & state returns

CP2000 Extract • Under-reporter matching program• Data from second tax-year prior• Provides agreed assessments • State uses:

• Generate proposed assessments

• Direct-bill taxpayer• ID employers not reporting

Corporate Affiliations• Entity date for parent & sub corp• Fed Forms 1120 & 851• State uses:

ID non-filers Audit selection process of corporations

Submit new corp on BMF/BRTF tickler

Secure Data Transfer (SDT)

• Secure electronic file exchange

• IRS provides software

• State responsible for Identrust digital certificate (authorization)

• All NESTOA revenue agencies have an active SDT account

E-Services Products:Transcript Delivery System (TDS)

• TP account data in real or near-real time• Individual and business accounts• Includes approx. 300 transaction codes• Two request options

• State user requests • Bulk requests

TDS State User Request

• Use for individual requests• Online response is immediate• Information displayed on pc screen • Justification for disclosure is required• Taxpayer authorization is not required

Product Options• Account Transcript• Return Transcript• Record of Account• Wage & Income

Documents

Delivery Options

• Online • Secure Object

Repository (SOR)• Fax• US Mail

TDS State User Request

TDS Bulk Request• Upload formatted file to TDS• Up to one megabyte

(3,500 spreadsheet rows)• Acknowledgment page appears • Delivery to SOR within 48 hours• Files deleted after 3 business days

TDS Bulk Request• Each transcript must be pulled from

SOR individually• New “print all” option• Requested enhancement:

• Application to application (A2A)• State would get raw data• Ability to query TDS data

TDS State Usage Report• Monthly report – not a transcript• Used by IRS Disclosure• Delivered to states monthly via SDT• Monthly list of individual TDS

accesses by state users• Only aspect of TDS that uses SDT

Communication & Support

Communication & Support• IRS Digital Daily (irs.gov)• Local Governmental Liaison• FTA’s TaxExchange web site• IRS extract listserv (FTA)

e-Services products• Information on e-Services products

is available on irs.gov• Click on Tax Professionals• Click on e-Services for Tax Pros• Tutorials are available for users of

e-Services

Local Governmental Liaison• First point of contact• Current list on TaxExchange (

www.taxexchange.org)• Click on “IRS/Federal Agencies” on

left side of page

 

IRS State Governmental Liaisons [GL] Contacts[updated May 10, 2011][more Contact Information]

Other IRS DocumentsNew IRS Pub 1075 for Disclosure and Computer Security Officers [2010]

[more on IRS Data Exchange and Extracts]Automated SDT Notifications SDT Monthly Update June 2011[More New & Archived SDT Tumbleweed updates]  

Rod Sterling IRS Governmental LiaisonRobert.J.Sterling@irs.gov

Questions?