What’s with MeF?

In 2012, the IRS is planning a wide-spread improvement in how it processes e-filed returns. The current system fondly called the “legacy” system by the IRS processed over 70% of the 2010 individual tax returns.

The current plan is to replace this system with the Modernized e-File (MeF) System. Full shutdown of the “legacy” e-file system is currently scheduled for October of 2012.

What is MeF?

MeF is a web based system that will provide faster tax filing acknowledgements, improved error explanations, year round electronic filing and “real time” filing with better ability to include attachments like .pdf’s to your tax return.

What’s happening this year?

The MeF system was available in 2011 to file 2010 Form 1040s and 21 other related forms and schedules. Approximately 8 million tax returns were processed last year within the MeF system. For 2011 tax returns, 128 new forms are being added to the system and all states must begin to make their processing compliant to the new system.

What do you need to Know?

The new MeF system has not been tested with the anticipated tax return volume expected this year. While no problems are anticipated, there may be an impact on e-filed tax returns. Hopefully, it will mean more accurate e-filling and better/quicker processing of refunds.