The New Benchmark

Customer Satisfaction Stud

For IRS Form 941TeleFile

Prepared For:

December 8, 2003

Publication 4347 (6-2004)Catalog Number 38614K
2

Background & Purpose

 The IRS conducted benchmark Customer Satisfaction researc

Business e-file product in 2001. However, the target auddecision-makers and not necessarily the person who actually p

 The IRS later decided to focus subsequent satisfaction sur

preparing Form 941 and to re-benchmark Customer Satisfact

In the process of developing a new benchmark study, the configure survey questions to get at information more relevan

 Still, the basic objectives of the new benchmark study are the 

 To establish new benchmarks for satisfaction levels among Form 941 To secure any new ideas that Users would like the IRS to explore 

Form 941TeleFile.

 And to determine why Eligible Non-Users of the electronic Form (w

using the electronic product and what the IRS can do to stimulate th

 Note: with strong similarity in the composition of this year’s samp

provided comparative measures from the two studies on key data po
3

Method, Scope & Timing

 The fieldwork for the new benchmark study was conducted b

Research’s national telephone interviewing facility in WayneSeptember 24 to November 11, 2003.

 A total of 1,000 interviews were conducted – 500 with User

with Eligible Non-Users. All respondents were selected on a provided by the IRS.

 In the Detailed Findings later, the following types of graphic 

attention to nuances in data and bases and to note signifiimportant learning among sub-groups. 

* An asterisk indicates less than 1⁄2 of 1%.# A number sign indicates a small base, with data that are too sma

A circle highlights a significant difference between sub-groups (Color-shaded boxes or color fonts highlight other differences or 
Key Findings
5

Key Findings

 Results show Form 941TeleFile generating high satisfaction among its Us

97% “very” or “somewhat” satisfied) and, if it was not available, abo

would revert to Paper filing of 941s.

 However, Eligible Non-Users have strong resistance to the product (with 

it and 35% “very” or “somewhat” likely). Their main barriers, aside frmethod, are that they are not aware of the confirmation of receipt 

complex and too time-consuming. Lack of awareness is also a problemaware of 941TeleFile without being prompted with the product name.

 Non-Users offer few suggestions for increasing their likelihood of use, aside 

However, in a separate measure, we found that a substantial number of those 941TeleFile (about two-thirds of the 35% very/somewhat likely to use) said tha

would increase their interest in using 941TeleFile.

 The Non-User perception of 941TeleFile as “too time-consuming” appe

reporting a preparation time that is about 10 minutes longer than we fouPaper form). In line with this, the Users told us that the product would it faster/quicker” and by “eliminating repetitiveness in data entry”.

 Overall, these results tell us that 941TeleFile serves as an important st

and that its elimination would impede growth of the Business e-file findings, analysis of year-to-year growth, cost per call, etc., would show sustained as is, and other research could tell us what specific modifdecreasing repetitiveness in data entry, minor usage fees, etc.) would ineffectiveness of 941TeleFile.
Detailed Fin

dings
Findings Among

941TeleFile Users
8

Overall Satisfaction With Form 941T

 The 941TeleFile product achieved a high satisfaction score amo

fourths “very” satisfied and with virtually all of the remainder at le

19

2 

78

0

102030405060708090

100

Very Satisfied Somewhat Satisfied Somewhat

Dissatisfied

Very 

2003 Users (n=500)

The Overall Satisfaction Rating
9

Overall Satisfaction: 2003 vs. 2

 The satisfaction levels we found among this year’s user/preparer 

what we found among the decision-makers in the 2001 survey.

2

21

2 

76

19

78

0

102030405060708090

100

Very Satisfied Somewhat Satisfied Somewhat Dissatisfied Very 

2001 Users (n=500) 2003 Users (n=500)

Satisfaction: 2003 vs. 2001 
10

Reasons For The Satisfaction Ra

 When we look at reasons for the 2003 overall satisfaction r

convenience” is driving the high overall rating point (the “very sati

 Those who were less than “very” satisfied focused mainly on th

consuming/slow”, with too much “repetition”, “waiting”, and “re-s

Total 941TeleFile Users Q. 7 – Reasons For Satisfaction Rating:

NET WHO MENTIONED SOMETHING POSITIVE 

Ease/Convenience (subnet) 

Easy to use You can do it anytime/at your convenience Don’t have to mail it Don’t have to figure out totals yourself 

Speed (Mainly “it’s fast”, “saves time”, “takes less time”) Confirmation/you get confirmation of receipt/a confirmation number Accuracy/it’s accurate 

NET WHO MENTIONED SOMETHING NEGATIVE 

It’s too time-consuming/too slow/takes too long It’s repetitive/too much repetition in number entry You have to wait for prompts If you make a mistake, you have to start back at the beginning 
11

Top-Box Satisfaction With Specific Dimension

 Users rated their satisfaction with specific dimensions of 941TeleF

highest satisfaction rating on each of these (“very satisfied”satisfaction with all dimensions except “being a time-saver” and b

81 82

89

84 83

94

0

102030405060708090

100

Being an

inexpensive

method of filing

Form 941

Being easy to

learn

Being paperless Being easy to use, with little

hassle

Being a private

and secure

way to file

Form 941

Compared to

other methods

of filing Form

941

Be

sa

2003 Users (n=500)

% “Very Satisfied” Across Product Dimensions 
12

Top-Box Satisfaction With Dimensions: 2

 Again looking at the top-box/”very satisfied” ratings and compar

we see significantly higher satisfaction among this year’s usersamong the decision-makers in 2001. 

% “Very Satisfied” Across Dimensions: 2003 vs. 2001 

77

72

80

74

78

88

83 82 81 84

89

94

0

102030405060708090

100

Being an

inexpensive

method of filing

Form 941

Being easy to

learn

Being paperless Being easy to use, with little

hassle

Being a private

and secure

way to file

Form 941

Compared to

other methods

of filing Form

941

2001 Users (n=500) 2003 Users (n=500)
13

Suggested Improvements For Form 94

 One-fourth of the 2003 Users offered specific suggestions for i

The top mention was to “make the process faster/quicker”, followrepetitiveness of the form” and “quicker/shorter prompts”. 

Total 941TeleFile Users Q. 8/9 – % With Suggestions For Improvement In 941TeleFile (New Base=Total Claim That 941TeleFile Can Be Improved) Specific Suggestions For ImprovementMake the process faster/quicker Eliminate some of the repetitiveness of the form The prompts should be quicker/shorter prompts Need to be able to adjust cent fractions without hanging up/the fractions are confusing Need a way to skip instructions if you know how to use it already All data should not have to be re-typed if a mistake occurs Need a way for the system to recognize your previous years’ records Need a better way of checking the information you’ve inputted 
14

Recall of Information About Form 94

 About half of all Users said that they have seen information 

941TeleFile, with the top recall being “forms”, “instructions/tax rFar fewer Users recall 941TeleFile information at irs.gov, marketin

forms of information. 

Total 941TeleFile Users Q. 11/12 – Recall of Specific Information of 941TeleFile% Recalled 941TeleFile Information (New Base=Total Recall 941TeleFile Information) 

Forms Instructions/Tax Records Publications Information at the IRS’s website – irs.gov Invitational Flyers or Marketing Brochures and Marketing Flyers Information from Software Vendors Newspaper or Magazine Ads All Other Mentions Can’t Recall 
15

General Helpfulness of Information Abou

 Those Users recalling 941TeleFile information indicated that they f

because it provided precise instructions/directions and was easy t

Total Recall 941TeleFile Information Q. 13 – Overall Helpfulness of Information

VERY/SOMEWHAT HELPFUL 

Very Helpful Somewhat Helpful 

Not Very Helpful Not At All Helpful Don’t Know/No Answer 

Q. 14 – Ways Information Was Very/Somewhat Helpful (Top Mentions)

(New Base=Total Found Information To Be Very/Somewhat Helpful) 

Told me exactly where I needed to start/told me how to use it Easy to use/convenient Easy to understand Clear/clarify every line Simple directions Step-by-step instructions 
16

Receiving Information About 941T

 Clearly, Mail is the primary channel for communicating with 

941TeleFile information received through the Mail and with 92% 

information via Mail. It is surprising that more do not choocommunication channel, given that 86% (as we’ll see later) are In

Total Recall 941TeleFile Information Q. 15 -- How Received 941TeleFile Information...

Mail Internet e-mail Picked it up at post office/library Picked it up at an IRS office Bulletin Board All Other Mentions Don’t Know/Refused 

Q. 16 -- How Prefer to Receive 941TeleFile Information...

Mail Internet e-mail Pick it up at post office/library Pick it up at an IRS office Bulletin Board All Other Mentions Don’t Know/Refused 
17

What If 941TeleFile Was Elimina

 We asked Users what they would do if 941TeleFile was elimina

switch back to Paper, while only 51% would seek an electronic fili

 We also asked those using Electronic Funds Withdrawal what paym

if 941TeleFile was eliminated and found that 53% would returVoucher while 39% would use EFTPS.

Total 941TeleFile Users Q. 46 – Method Would Use If 941TeleFile Were Eliminated

Paper On-Line Electronic Filing/e-file Don’t Know/No Answer 

Q. 47 – Method of Payment Would Use If 941TeleFile Were Eliminated

Mail in Payment with Voucher EFTPS Don’t know/No Answer 
Findings Among

941TeleFile Non-Users
19

Awareness of 941TeleFile Eligibility & Tax Rec

 At the start of the Non-User section of the survey (and after som

From 941TeleFile), about 8 out of every 10 Eligible Non-Users clai

use 941TeleFile and about the same number claimed to recall 

instructions”. 

Total 941TeleFile Non-Users Q. 17 – % Aware They Could Have Used 941TeleFile 

Q. 18 – % Recall Receiving Purple Tax Record & Instructions 

 Still, to be sure they understood the form we were about to disc

the following description of 941TeleFile:

941TeleFile is an IRS e-file option for businesses filing FEmployer’s Quarterly Federal Tax Return. With 941TeleFile, you or others in your company, or yoCPA, can file Form 941 by touch-tone telephone, using tkeypad to enter your tax data and signature verification is no reporting agent involved.
20

Likelihood of Using 941TeleFi

 After hearing the description though, only 10% of Eligible Non-U

likely to use 941TeleFile – with just another 25% “somewhat” like

 About two-thirds of Eligible Non-Users described themselves as un

25

34

30

10

0

102030405060708090

100

Very Likely Somewhat Likely Not Very Likely Not At All Likely D

Total Non-Users (n=500)

The Likelihood Of Use Rating
21

Likelihood of Using 941TeleFile: 2003 

 The level of interest in use was lower among this year’s Non-User

than we found among the decision-makers in the 2001 sample.

30

32 28

25

14

34

25

10

0

102030405060708090

100

Very Likely Somewhat

Likely

Not Very Likely Not At All Likely 

2001 Non-Users (n=500) 2003 Non-Users (n=500)

Likelihood Of Use: 2003 vs. 2001 
22

Why Not Use 941TeleFile?

 We asked Non-Users aware of their eligibility to use 941TeleFile w

it and found that the top barrier is the same as what we usually filers – “preference for/comfort with” the “traditional” (i.e., Paper) 

 However, beyond that, we also see some very clear perceptual 

segments of Non-Users think they do not get a receipt, consider 

consider it too time-consuming.

Total 941TeleFile Non-Users & Aware of Eligibility Q. 21/22 – Reasons Not Currently Use (Unaided vs. Total Mentions)Use/prefer traditional method Other methods come with receipt/copy Feel more comfortable/secure using another method Other methods less complicated/easier/convenient 941 TeleFile is too time consuming/takes too long 

Never learned how to use it Would just rather do it myself (i.e., via paper) Use tax preparer/accountant 
23

Lack Of Awareness Of 941TeleFile Is Als

 Another barrier to use of 941TeleFile is lack of awareness. Howev

barrier in the diagnostic measures just covered – it could not, arespondents with a description of the product going into the Non-U

 However, we can see the importance of lack of awareness in t

responses collected at the start of the survey. There, only 40% Users) mentioned 941TeleFile as a 941 filing option on an unaidaware of it after being prompted.

Total Interviews Q. 1 – Awareness of Methods of Filing Federal Form 941 (Unaided)

941TeleFile Self-Prepared 941 Paper 941 On-line 941 e-file 941 Paper Using a Tax Professional 941 Magnetic Media All Other Mentions Don’t Recall/Refused/None 

Q. 2 – Awareness of Methods of Filing Federal Form 941 (Total)

941TeleFile 

Self-Prepared 941 Paper 941 On-line 941 e-file 941 Paper Using a Tax Professional 941 Magnetic Media 
24

Perceptions Of 941TeleFile Among Eligib

 In addition to the barriers we just reviewed, we can see from Non

statements about 941TeleFile) that they generally have low belief 

of the electronic form – especially its being “private/secure”, “ea“better than other methods of filing 941”, and “more accurate”.

52

46

27

52

25

14 

0

102030405060708090

100

Would be easy

to learn

Would be an

inexpensive

method of iling

Form 941

Would be

paper-less

Would be aprivate and

secure way to

file Form 941

Would be easy

to use, with

little hassle

Would be a

time-saver for

you

b

oth

of 

% “Agree Completely” Across Product Dimensions
25

Perceptions Of 941TeleFile: 2003 v

 Comparing the “agree completely” ratings this year with those we 

two perceptual points with substantially lower ratings this year“would be a time-saver”.

24 27 25

21

54

24

59

45

14

46

52 52

0

102030405060708090

100

Would be easy

to learn

Would be an

inexpensive

method of iling

Form 941

Would be

paper-less

Would be aprivate and

secure way to

file Form 941

Would be easy

to use, with

little hassle

Would be a

time-saver for

you

2001 Non-Users (n=500) 2003 Non-Users (n=500)

% “Agree Completely” Across Dimensions: 2003 vs. 2001 
26

Does 941TeleFile Really Take Longer To 

 Noting the mentions of 941TeleFile being “too time-consuming” 

product in terms of being a “time-saver”, we looked at User and amount of time it takes to complete Form 941 and found that the Flonger to complete when 941TeleFile is used. Note: these estim

time spent in record-keeping, learning the form, and in actually co

T

U

Total Interviews (5Q. 43 – Time It Takes To Complete From 941

Mean (In Minutes) 48.Median (In Minutes) 30.
27

What IRS Can Do To Increase Us

 When we asked Non-Users what the IRS could do to increas

941TeleFile, only about half offered suggestions – the top one Other specific suggestions were scattered and low in mentions.

Total 941TeleFile Non-Users Q. 23 – % Saying IRS Can Do Something To Increase Likelihood Of Using 941TeleWhat Can The IRS Do?

Make it mandatory Provide more information about it Provide a paper trail for it Make it available on-line Make it easier/more convenient Provide confirmation of receipt 
Findings Among

The Total Target Audienc

Users and No

n-User

s
29

Interest in Entering/Filing Schedule B Usin

 We asked both Users and Non-Users all remaining questions 

questions about filing Schedule B using 941TeleFile. Results shounable to answer questions about Schedule B. Among those whinterest in entering/filing Schedule B (even among current 941Tel

in particular thinking it would be too time-consuming, and with bto TeleFile Schedule B would have little impact on their interest in 

U

Total Interviews (Q. 27 – Interest in Entering/Filing Schedule B Using Phone

Very Interested Somewhat Interested Not Very Interested Not At All Interested Don’t Know/Refused 

Q. 28 – How Time Consuming Would Be to File Schedule B Using Phone

Much Too Time Consuming Somewhat Time Consuming Not Very Time Consuming Not At All Time Consuming Don’t Know/Refused 

Q. 29 – Effect of Schedule B Capability on Likelihood of Use on 941TeleFile

Much More Likely To Use 941TeleFile Somewhat More Likely To Use 941TeleFile Would Have No Effect on Likelihood of Using 941TeleFile 

Don’t Know/Refused 
30

Zero-Wage Returns

 We also asked about Zero-Wage Returns and found only one-fifth 

type of return, with fewer having ever filed such a return. Among 

Wage Return, the current 941TeleFile Users had filed it mainly 

current Non-Users had not used 941TeleFile. Very few recalled the 

 39% of those never filing a Zero-Wage Return (or never filing on

were aware that they could file it using 941TeleFile. However, tthe series, by which point respondents could guess that they cotype of return. 

Total Interviews Q. 30 – % Ever Heard of Zero-Wage Return” 

Q. 31 – % Ever Had No Tax Liability, But Still Had To File Form 941 Q. 32 – Was “Zero-Wage Return” Filed By Telephone, Using 941TeleFile?

(New Base = Total Had A Zero-Wage Return) 

% Who Filed “Zero-Wage Return” Using Telephone/941TeleFile 

Q. 33 – Whether Received “Zero-Wage” Invitational Flyer

(New Base = Total Filed Zero-Wage Return Using 941TeleFile) 

% Had Received “Zero-Wage” Invitational Flyer (Q. 34 “Total Rec’d. Flyer” Raw Base Too Small For Analysis Of Helpfulness Rating. Base = ) 

Q. 35 – Awareness of Filing “Zero-Wage Return” Using Telephone/941TeleFil(New Base = Never Had Zero-Wage Situation Or Did But Did Not File Using 941TeleFile) 

% Aware They Could File Using 941TeleFile 
31

Other Federal Business Tax Forms/Schedules 

 We asked both Users and Non-Users of 941TeleFile what other 

company files and found that about three-fourths of the companiefile Form 940 while 4-7% each file Form 1065 (the Partners(Estates & Trusts return). 

T

U

Total Interviews (5Q. 36 – What Other Federal Business Tax Forms and

Schedules Does Company File?

Form 940, The Employers Federal Unemployment (FUTA) Tax Return Form 1065, The U.S. Return of Partnership Income Form 1041, The U.S. Income Tax Return for Estates and Trusts Don’t Know/No Answer 
32

More On Form 940 – The FUTA Re

 90%+ of those in companies filing a Form 940 said their 940 is fil

said the 940 return type is a 940EZ. When the 940EZ users were 

filing the 940EZ via TeleFile, the 941TeleFile User group among 

while the Non-User group did not. However, among the small b

interest in TeleFiling their 940EZ, fully two-thirds indicated that T

them to TeleFile both their 940EZ and 941. 

Total File Form 940 Q. 37 – Methods Used To File Form 940

Paper On-Line Filing Electronic Filing/e-file Other/Don’t Know/No Answer 

Q. 38 – % Say Company Files 940 Using Form 940EZ 

Q. 39 – How Interested Would Be In Filing Company’s 940EZ Using TeleFile

(New Base = Total File Form 940EZ) 

VERY/SOMEWHAT INTERESTED 

Very Interested Somewhat Interested 

Not Very Interested Not At All Interested Don’t Know/No Answer 

Q. 40 – Whether Would File Form 941 & From 940EZ Using TeleFile

(New Base = Total Eligible 941TeleFile Non-Users Interested in Filing Form 940 EZ Using TeleFile) 

% Would File Both 941 and 940EZ Using TeleFile 
33

Methods Used To File Forms 1065 a

 While base sizes are small, we show the filing methods used for F

In both cases, we see that only about 10% or less are using electr

(New Base = Total File Form 1065) Q. 41 – Methods Used to File Form 1065

Paper Electronic Filing/e-file Don’t Know/No Answer 

(New Base = Total File Form 1041) Q. 42 – Methods Used to File Form 1041

Paper Electronic Filing/e-file Don’t Know/No Answer 
34

Suggestions For Improving IRS Services Re

 When we asked for suggestions for improvement in IRS service

found that only 20% of Users and 30% of Non-Users could offer a

 While their responses here were quite diffused, we grouped 

suggestions together and found that most suggestions related to the filing process, and improving service in general. 

Total Interviews Q. 45 – Can You Offer Any Suggestions for Improving IRS

Services Related to Federal Business Tax Forms

Had Suggestions For Improvements 

All Miscellaneous Mentions Related To Improving Forms All Miscellaneous Mentions Related To Improving The Filing Process All Miscellaneous Mentions Of Improving Service Generalized Mentions Of Providing More Information Total With No Specific Suggestions Don’t Know/No Answer 
35

Firmographics

 Finally, looking at the classification measures, we see that the Use

are similar in size, but with Non-Users having less internal decisioForm 941. On a respondent level, we see that the Users and Nonlevel of Internet access and are quite similar in terms of how attitudinal segments that are tracked in IRS e-file research.

Total Interviews Median # of Employees Employed by Company Median Revenue in 2002 Q. A – Who Decides How Company’s Form 941 is Filed

You and/or other executives or personnel within the company You and/or other executives in consultation with outside tax pro/acct/CPA Your company leaves decision entirely to outside tax pro/acct/CPA 

Q. B – Who Actually Prepares Federal Form 941

Actual preparer was someone in the company Actual preparer was another executive or personnel within the company Actual preparer was an outside tax professional, accountant or CPA 

Q.48-49: % With Access to Internet 

Technology Attitudinal Segmentation:

Tech Leaders Tech Followers Tech Laggards 
Appen

d

i

x
37

Methodological Summary

 The 2003 941TeleFile Customer Satisfaction Study was condu

with all interviewing managed and conducted at the Russell natiWayne, NJ. 

 A total of 1,000 interviews were conducted – 500 with 941TeleFi

Users.

 Interviews were conducted during the period of September 24 to  All interviews were conducted on a random (every nth selection

and addresses provided by the IRS, with Russell Research prlookup services. 

 At the outset of each screening interview, the interviewer as

business being called and then queried the owner about decisioof Form 941 and, if the owner prepared the form, he/she was intprepared the form, the owner was asked to refer the interviewer In 96% of User interviews and 79% of Non-User interviews, twithin the company.

 All interviews were conducted during daytime business hours 

time zone). 
Q

ues

t

i

o

n

n

a

i

r

e U

sed I

n S

t

u

dy

(Attache

d Electronically)