(Feb. 5, 2001) Terence H. Lutes was named director of the Electronic Tax Administration of the IRS in January 2001, after serving as interim director since October 2000. Lutes, who began his career with the IRS in 1977 as chief of the training branch in Wichita, Kan. district, has held several posts at the agency, including serving as director of the Martinsburg Computing Center and director of Electronic Program Operations. In this interview, Mr. Lutes will update us on the goals and challenges of the ETA, from e-filing to self-select PINs to checkbox disclosure authorization.

	Introduction
The Electronic Tax Administration was formed with the purpose of revolutionizing how taxpayers transact and communicate with the IRS...

	Question 1
The IRS has put a lot of effort into promoting electronic filing. How much has the e-filing program grown over the past five years?

	Question 2
The 1998 Tax Reform and Restructuring Act set an IRS goal of having 80 percent of all tax information and returns filed electronically by the year 2007. How close is the IRS to meeting that goal today, and what will it take to achieve it?

	Question 3
Another goal is to lower the processing cost of filing electronically to $2 per return. What is the current per-return processing cost, and what is the IRS doing to get it lower?

	Question 4
What are the biggest challenges the IRS faces in meeting its e-filing goals?

	Question 5
What about trust? Some people don’t feel safe even buying a book online, but now you've got to convince them to file their tax return electronically.

	Question 6
How many individual returns does the IRS expect to process this tax season and how does it compare to last year?

	Question 7
What are the ETA's goals for the current tax season?

	Question 8
The IRS has recently launched a number of new initiatives, including self-select PINs and checkbox disclosure authorization. How will these changes impact tax professionals?

	Question 9
Finally, would you leave us with your thoughts about the current standing and the future of the ETA?

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