TIGERS Meeting Pittsburgh Internal Revenue Service September 2008

Me. F Statistics Through 9 -14 -08 • Total Me. F Volume= 3, 063, 629 Form Type CUM Projected Receipts CUM Actual Receipts CUM % Actual vs Projected CUM % 2007 vs 2008 1120 288, 904 259, 826 89. 93% 138. 56% 1120 S 827, 725 839, 431 101. 41% 147. 46% N/A 88 N/A 1, 508, 554 1, 120, 347 74. 27% 136. 11% 549, 375 579, 403 105. 47% 163. 15% 25, 239 35, 864 142. 10% 218. 47% 990 -EZ 6, 703 7, 896 117. 79% 214. 22% 990 -PF 3, 418 4, 683 137. 00% 203. 32% 990 -N (new) N/A 163, 325 N/A 1120 -POL N/A 12 N/A 8868 28, 999 39, 168 135. 07% 184. 85% 2290 (new) 11, 877 13, 543 114. 03% N/A 720 (new) 777 14 1. 80% N/A 8849 (new) N/A 29 N/A 1120 -F (new) 7004 1065/1065 -B 990 2

IRS Timeline 1120 and 1065 November 3, 2008 Assurance Testing (ATS) Testing Startup for TY 2008 December 29, 2008 Last day of Me. F processing for 2008 Bring Me. F system down to load new tax year programs January 5, 2009 Production Startup for TY 2008 --will also support TY 2006 and TY 2007 January 5, 2009 Strong Authentication Required—passwords no longer accepted (certificates) 3

Me. F Fed/State Update § 16 States in Production status for 1120: § AL, CO, FL, GA, ID, KS, MD, MI, MO, MT, NYS, OR, PA, SC, UT and WI § 8 States in Production status for 1065: § AL, GA, ID, KS, MD, MI, UT and WI 4

Fed/State Returns for Calendar Year 2007 • The IRS made available State submissions for 10 states - Total Volume 55, 326 5

Fed/State Returns through 9 -16 -08 Total State Returns Made Available State Corporate Fed/State Made Available Partnership Fed/State Made Available Corporate Standalone Made Available Partnership State Standalone Made Available ALST 452 152 N/A 300 N/A COST 99 34 N/A 65 N/A FLST 167 N/A N/A GAST 20, 653 6, 903 255 9, 135 450 IDST 1, 802 204 44 1, 292 0 KSST 18, 490 4, 573 3, 301 6, 127 3, 185 MDST 26, 781 8, 039 4, 745 9, 473 3, 234 950 90 2 645 29 MOST 1, 644 529 N/A 794 N/A MTST 46 0 N/A 15 N/A NYST 48, 424 16, 671 N/A 25, 192 N/A ORST 4, 037 246 N/A 3, 046 N/A PAST 2, 899 1, 605 N/A 882 N/A SCST 3, 055 732 N/A 1, 070 N/A UTST 581 42 2 136 2 WIST 47, 196 14, 454 7, 945 14, 140 8, 057 177, 276 54, 441 16, 294 91, 584 14, 957 MIST Total: 6

Get New Submissions: Process Changes (Presented at the 1040 Working Group Meeting by IBM) q. Why the need for Change? Ø Minimize client session timeouts when they request to pick up new submissions ü Time spent is in retrieving and packaging the submissions while client app is waiting ü Target is to eliminate the client wait time q. What’s Changing? Ø Pre-package new submissions into ready-to-go files (Message Attachments) Ø Package them at scheduled times Ø For each state (ETIN) AND Submission Category Ø Deliver a file (Message Attachment) when a Get. New. Submissions request is received ü If no pre-packaged file is available, return an Error (same condition when no submissions are available in today’s implementation) Ø Pre-built files are kept for specified (tbd) period Ø States can re-retrieve these files during this period using Get. Submissions. By. Message. ID request Ø States indicate the maximum size of the file they can handle ü Specified size must be bigger than the largest size of any one return ü Me. F will build files that are less than or equal to this size ü Specified size must be less than what Me. F can handle 7

Get New Submissions: Process Changes q How does it impact the Trading Partners? ØNo change in the client Get. New. Submission process ØStates will continue to use ‘Get Submission Reconciliation List’ to determine which submissions have not been picked up ØStates will continue to retrieve specific submissions by using the Get Submission and Get Submissions services 8

Get New Submissions: Process Changes • Decisions since 1040 Working Group Meeting – Me. F will use a profile for managing packaging of the new state submissions. – Me. F will come up with a default setting regarding the size of the file, etc. that we feel would be the best. – Me. F will distribute the default setting information to the participating states so that they can request any changes. If no changes are requested, the state’s profile will be set to the default. – States will be able to change their profile once a year. – If a singe return requires a file size that is larger than the state’s maximum, Me. F will send a file with that single return and disregard the file size maximum in their profile. – Earliest that this change would be implemented would be January of 2010. 9

Questions 10