The Customer Account Data Engine (CADE) is up and running at the IRS. With many groundbreaking challenges and several setbacks, the IRS has the master taxpayer database modernization system running as of July 21, 2004. The IRS began processing an initial set of 1040EZ tax returns and plans to process more than 2 million 1040EZ tax returns during 2005.
CADE will certainly change the current landscape of return processing at the IRS. Currently, incoming tax data is stored on a 40-year-old magnetic tape-based system. CADE will replace the antiquated master file system that can currently take a week to update and creates delays in providing account information to taxpayers.
The system will be a modern database housing tax information for more than 200 million individual and business taxpayers and provides a number of benefits including faster refunds, daily posting of transactions, and updating of accounts.
Since CADE will be updated daily instead of the eight working days required for the current system, the IRS will have up-to-date information when assisting taxpayers. IRS spokes-woman Tamara Ward states, "IRS employees will be able to
post transactions and update taxpayers' accounts right from their desks."
The IRS estimates refund times will be 5-7 days from the time a return is filed, as opposed to the current 7-14 day cycle. This means IF you electronically file, some of your clients will get their refund even faster. CADE will likely apply to a fraction of the 1040EZ returns for this coming year.
