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New Taxpayer Account,
Processing System Debuts
Courtesy of IRS
WASHINGTON - A modernized system designed to replace the IRS
central database of taxpayer account information has processed
its first live returns, the Internal Revenue Service announced
this week.
The Customer Account Data Engine (CADE) started processing an
initial set of 1040EZ tax returns in the past week. The returns
being processed are the most basic of 1040EZ forms and have a
narrow range of taxpayer information, but it marks the first
time since the 1960s that individual tax returns have been
processed in a new way.
"For the first time in 40 years, the IRS is processing returns and
issuing refunds on a new computer system," IRS Commissioner Mark W.
Everson said. "We've waited a long time for this moment. While
long overdue, this is an important first step in modernizing our
return processing technologies. We still have a long way to go
and a lot of work ahead of us."
CADE will be used to process more than 2 million 1040EZ tax returns
during the 2005 filing season. The CADE system is scheduled to be
phased in over several years, processing increasingly more complex
tax returns in stages, ultimately replacing the 40-year-old system
the IRS now uses to process tax return data.
When fully operational, CADE will be a modern database that will
house tax information for more than 200 million individual and
business taxpayers. It replaces an antiquated system called the
Master File. The magnetic tape-based system came into use four
decades ago, takes a week to update records and creates delays
in providing accurate account information for taxpayers. When
completed, CADE will provide a variety of benefits to taxpayers,
such as faster refunds along with daily postings of
transactions and updating of accounts
Courtesy IRS
Published TaxMama.com 7.23.04
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