IRS to ramp up CADE processing

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.

About the Author

Mary Mosquera is a reporter for Federal Computer Week.

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