IRS CADE Processing System Tops 15 Million Tax Returns

Notice: Historical Content

This is an archival or historical document and may not reflect current law, policies or procedures.

IR-2008-39, March 12, 2008

WASHINGTON — One quarter of all individual tax returns so far this filing season is being processed by the Internal Revenue Service’s modernized account information computer system.

Known as the Customer Account Data Engine, or CADE, the system has successfully processed 15.1 million individual tax returns through March 7, more than 25 percent of all those processed so far this year by the IRS. The number of tax returns processed this year by CADE has already topped the 11.2 million returns the system handled for all of last year.

“This system is the centerpiece of our modernization efforts at the IRS,” said Richard Spires, IRS Deputy Commissioner for Operations Support. “CADE is handling significantly more tax returns each year. The long-term investment in this program is paying off with meaningful results for the American taxpayer.”

CADE, which is at the core of the effort to replace many of the agency’s aging systems, dramatically speeds up internal IRS processing, permitting taxpayer accounts to update on a daily basis. The older system updates only on a weekly basis.

“This supports better customer service for the taxpayers, processes refunds quicker and helps the IRS better administer the nation’s tax system,” Spires said.

The IRS is rolling out CADE in a series of “releases,” each improving on and adding to the system capabilities. The current release, launched in January, permits CADE to process certain 1040, 1040A and 1040EZ forms, as well as schedules C, E and F for Form 1040 and a number of other IRS schedules, such as the Earned Income Tax Credit (EITC).

CADE was envisioned to replace the legacy Master File system, parts of which date back to the Kennedy Administration. CADE will eventually house the account information of more than 200 million individual and business taxpayers.

The IRS will process nearly 140 million individual tax returns in 2008 and collect approximately $2 trillion in federal government revenue.

In addition, the IRS today issued the latest two weeks of filing season statistics.

 

2008 FILING SEASON STATISTICS

Cumulative through the weeks ending 3/9/07 and 3/7/08

Individual Income Tax Returns

2007

2008

% Change

Total Receipts

61,124,000

63,383,000

3.7%

Total Processed

56,975,000

59,270,000

4.0%

 

 

 

 

E-filing Receipts:

 

 

 

TOTAL

45,497,000

48,795,000

7.2%

Tax Professionals

32,156,000

33,419,000

3.9%

Self-prepared

13,342,000

15,377,000

15.3%

 

 

 

 

Web Usage:

 

 

 

Visits to IRS.gov

81,664,000

91,686,000

12.3%

 

 

 

 

Total Refunds:

 

 

 

Number

51,700,000

53,176,000

2.9%

Amount

$129.992

Billion

$136.976

Billion

5.4%

Average refund

$2,514

$2,576

2.4%

 

 

 

 

Direct Deposit Refunds:

 

 

 

Number

39,088,000

41,665,000

6.6%

Amount

$110.090

Billion

$117.808

Billion

7.0%

Average refund

$2,816

$2,827

0.4%

 

 

2008 FILING SEASON STATISTICS

Cumulative through the weeks ending 3/2/07 and 2/29/08

Individual Income Tax Returns

2007

2008

% Change

Total Receipts

54,173,000

55,704,000

2.8%

Total Processed

49,691,000

51,240,000

3.1%

 

 

 

 

E-filing Receipts:

 

 

 

TOTAL

41,221,000

43,777,000

6.2%

Tax Professionals

29,002,000

29,738,000

2.5%

Self-prepared

12,220,000

14,027,000

14.8%

 

 

 

 

Web Usage:

 

 

 

Visits to IRS.gov

74,187,000

82,613,000

11.4%

 

 

 

 

Total Refunds:

 

 

 

Number

45,420,000

46,539,000

2.5%

Amount

$117.078

Billion

$122.716

Billion

4.8%

Average refund

$2,578

$2,637

2.3%

 

 

 

 

Direct Deposit Refunds:

 

 

 

Number

35,645,000

37,748,000

5.9%

Amount

$101.540

Billion

$107.955

Billion

6.3%

Average refund

$2,849

$2,860

0.4%

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