IRS initiates new database, processing system.

• Position: National

The IRS has a new way of doing business. A modernized system designed to replace the IRS central database of taxpayer account information has processed its first live returns. The returns being processed are the most basic of 1040EZ forms and have a narrow range of taxpayer information.

The Customer Account Data Engine (CADE) will be used to process more than 2 million 1040EZ tax returns during the 2005 filing season. The CADE system is scheduled to be phased in over several years by processing increasingly more complex tax returns in stages and ultimately replacing the 40-year-old system the IRS now uses to process tax return data.

When fully operational, CADE will be a modern database that will house tax information...