Read how Booz Allen Hamilton worked with OMB and the Internal Revenue Service to develop the business strategy for Electronic Tax Products and Services.

OMB and IRS's Challenge: The Tax Foundation estimates that US business spends approximately $2.75 billion annually completing tax forms required by the IRS. Today, the IRS has 10 service centers, each staffed with hundreds of employees, dedicated to processing the paper forms received during each tax season. Collectively, the American public spends billions of dollars each year to file and submit taxes to the Federal Government.

Since the 1980s the IRS has been implementing electronic filing options, however previous efforts have achieved limited participation by businesses and tax preparation entities. The IRS needed a holistic strategy that would successfully address industry needs, and also integrate with the IRS's existing internal business processes. The challenge? Automate and streamline the tax filing process to minimize the burden to business, and maximize the information efficiencies within the IRS and supporting Federal agencies.

Booz Allen's Solution: Resulting from the IRS Restructuring and Reform Act of 1998, Booz Allen Hamilton was selected as the lead firm to help the IRS redesign its entire internal operations and organizational structure. Since 1998 Booz Allen has worked closely with the IRS, and in May 1999 became the first consulting organization to ever receive an award from the IRS Commissioner for the commitment and contributions made in helping the IRS accomplish its mission and goals. In December 2001, Booz Allen was asked to leverage its extensive understanding of the IRS organization and technology infrastructure, and help the IRS expand its tax products and electronic filing for businesses.

Booz Allen Hamilton began working with IRS to address the inherent challenges in e-enabling the tax filing process. In December 2001 Booz Allen submitted a business case and capital asset plan outlining the business strategy and investment needs required to make this initiative successful. Immediate concerns addressed in the business case included: the need to improve e-Filing for over five million employers, automating corporate tax returns to help approximately six million corporate tax payers, continuing to leverage the momentum building around citizen electronic tax filing, and maximizing information efficiencies within the IRS.

Recognizing that subtle changes in tax filing processes can have significant implications for commercial industries, Booz Allen also helped the IRS form a technology oversight committee that includes both government and industry experts.

Through this Booz Allen designed committee, IRS executives are exchanging ideas and receiving business suggestions, technology recommendations, and perfecting strategies designed to minimize the taxpayer burden in submitting and filing taxes to the Federal Government.