Don’t laugh: IRS is looking to modernize. One of the first items on its to-do list is updating the FIRE system for electronic filing of returns and information reports.

These changes are still in the planning stage, but they’ll give you an idea of what you can look forward to — eventually:

• More interactivity — IRS wants to be able to deliver B-notices, penalty assessments and similar notices electronically, just like you can submit tax info to the Service. The move would save the feds money, and save you much-needed time.
• “Unattended transmission” — Ultimately, IRS’ goal is for your computer to send transmissions directly to its own computers without requiring a human to intervene at any point.
• Validation of received transmissions — IRS is hoping to be able to provide validation of received reports and transmissions. The idea is to save time and money for both you and IRS by letting you know right away if there’s an error or other transmission issue that requires attention.

Tags: A/P, Best practices, E-filing, Information returns, IRS, Payroll