The current systems are not compatible with each other or with the information processing system IRS is building for the future. Five firms bid on the contract. Grumman 's proposal was the highest rated technically and the lowest priced, clearly representing the best overall value to the public. When its modernization program is fully implemented, IRS said that most taxpayers should be able to file their tax forms electronically. Taxpayers who do not file electronically will continue to file paper tax forms.
Character recognition is the most efficient format with a high degree of accuracy.
These systems create an image of the paper document from which the tax data can be processed electronically. IRS said that creating an integrated electronic environment for tax data processing is the key to IRS' modernization effort. Ready access to current and accurate data in electronic format by IRS employees will result in improved IRS operations and service to taxpayers.