Testimony on development of electronic funds transfer programs for the payment of state taxes before the Federation of Tax Administrators.

• Author: Burk, William M.

Testimony on Development of Electronic Funds Transfer Programs for the Payment of State Taxes

Introductory Remarks

Good morning. I am William M. Burk, Director, Domestic Tax and Audits for CPC International Inc. in Englewood Cliffs, New Jersey. I am here today in my capacity as President of Tax Executives Institute (TEI). The Institute is the principal association of corporate tax executives in the United States and Canada; its 4,300 members represent more than 2,000 of the leading corporations in North America.

TEI represents a cross-section of the business community, and is dedicated to the development and effective implementation of sound tax policy, to promoting uniform and equitable enforcement of tax laws, and to reducing the cost and burden of administration and compliance to the benefit of taxpayer and government alike at both the state and the federal level. As a professional association, TEI is firmly committed to maintaining a tax system that works -- one that is both administrable and with which taxpayers can comply.

TEI is very pleased to be present today to discuss the very important issue of electronic funds transfer (EFT) for the payment of state taxes. Just a month ago, TEI held its first-ever liaison meeting with the Federation of Tax Administrators (FTA), and we view this meeting as a manifestation of a continuing and productive relationship between the Institute and the FTA. Although taxpayers and tax administrators are often viewed as "adversaries," there are numerous areas where we share common interests and where we can -- and should -- work together. The Institute hopes that this meeting is the first in a series of forums to develop specific recommendations to the states. For example, TEI strongly believes that a similar meeting should be expeditiously scheduled to develop recommendations in respect of an administrative "bill of rights" for taxpayers.

In our comments today, we focus on certain policy issues that we believe merit special emphasis. Administrative and technology-related implementation issues are discussed in an appendix to this statement and, we understand, will be addressed in detail by representatives of the Committee on State Taxation (COST) and the other organizations represented here today. From our prior work on EFT issues (and as a consequence of the cross-membership of TEI and COST), we can say with confidence that COST's specific comments are generally in accord with those of the Institute...