Data Systems Design -- IRS Reporter

Data Systems Design offers IRS Reporter, an all-inclusive program for preparation of filing of year-end information returns. The company offers all of its functions in one package that supports electronic, magnetic and paper filing of all form 1099s and 5498s, as well as W-2, W-2C, 1042-S, and 1098/E/T.

Pricing depends on the number of clients (Payers for whom IRS returns are prepared) that will be installed. For single-user licenses, the standard version of IRS Reporter costs $850 and supports up to 100 clients. Multi-user licenses are available with all IRS Reporter versions, and all versions support an unlimited number of recipients.

Usability/Navigation – 3.5 Stars
IRS Reporter provides a common sense interface that provides a row of all available forms across the top of the work screen. To access existing (or imported) forms, users select the button for that form and then select the Return Data pull-down menu from above. This brings up a subwindow with the most recently accessed recipient’s return. It would be a little more convenient if this was a one-step process, but it’s still fairly simple. The subwindow contains most of the features for entering data, including scrolling between existing records using web browser-style forward and back buttons, as well as the ability to search for an entry. The program does not provide an on-screen list of recipients for each payer, but the search functionality allows queries by name, TIN and other options, so finding a particular return is still fairly intuitive.

Data entry in IRS Reporter occurs mostly in entry fields housed in these subwindows, either for recipients or payers. When working within a form, the program contains scroll-down lists for items including the payer, city and zip code. The lists populate themselves, so that the first time an entry is made, it is added to the list and can be selected from it the next time. This feature is very useful for avoiding redundant entry of city/state information and can help users avoid data-entry errors. It could be useful if the developers added this feature to the recipient line because it would help for recurring recipients of different types of forms. However, the program does make it simple to duplicate a form of the same type. This can help reduce re- keying several items for some recipients (think multiple 1099-MISCs to the same recipient). IRS Reporter also allows multiple forms to be worked on at the same time, if they are of different types.

Although it does not use form replicas for data entry, the design of the information sheets is straightforward enough with layouts that make sense. The program uses traditional Windows features including cut-and-paste capability and hot key functions but, unfortunately, does not calculate fields such as FICA, nor does it include a built-in calculator.

Reporting & Import/Export Capabilities – 4.5 Stars
IRS Reporter can import return and payer data from sources that can output to text-delimited files, and the program includes a Text Editor function to help with determining correct positions of fields when mapping the file to be imported. The program easily carries forward data from previous years. It can also export data into the same delimited format for use with other programs. The system can print returns on preprinted forms or on plain paper, as well as format for printing elsewhere. IRS Reporter includes reports for balancing and cross checks.

Support for Paperless Transmission- 4.5 Stars
This system can be used to file electronically and magnetically, as well as in print for those users not required to file electronically by the mandate. The program does not provide Wizards but does include How-Tos on paperless filing in the Help utility. Unlimited e-filing and magnetic filing is included in the base price.

Help/Training – 4.0 Stars
IRS Reporter includes a good built-in help utility that includes How-Tos, Q&As, IRS and SSA instructions, term definitions, and limited right-click functionality. It does not have a tutorial, nor does the company have a training program, although the company stated that it does provide as much direct assistance to new users as necessary. Support costs an additional $370 per year for the single-user license and includes an online support site, as well as phone-based technical assistance.

Relative Value – 4 Stars
IRS Reporter is a helpful add-on system to payroll and AP programs without the capability to complete end-of-year returns. The program is priced somewhat higher than most of the others in this review, but that is a one-time charge (one-time, not an annual charge) that includes all of the features and all of the forms support, including 1042-S, which many vendors charge extra for. The support pricing also seems high at first glance, but bundled into the support charge is the annual renewal price, which includes the next year’s system, program updates and unlimited phone and online support. Overall, the program performs well, and my experience with learning and navigating through it was fairly intuitive, but the combination of having to pay for next year’s program in order to get a support package seems a little awkward.

2004 OVERALL RATING: 4

For this review section, we scored
the reviewed products on the following:

Usability/Navigation, which covers ease-of-use; number of clients and form recipients; primary navigation tools; and general operation of the program, including data entry.

Reporting & Import/Export Capabilities focuses on managerial tasks, printing functions and data transfer between the program
and spreadsheets and other applications
such as payroll and AP modules.

Support for Paperless Transmission. With increasing state and federal requirements for magnetic or electronic transmission of W-2s and 1099s, as well as the cost and timesaving benefits of minimizing printing, we considered the capabilities of these programs to perform paperless transmission of year-end returns.

Help/Training looks at built-in help utilities such as right-click menus and tutorials,
external help tools such as online
support centers and functionality,
as well as productivity tools and
training options.

Relative Value provides the reviewer’s subjective opinion of what the user gets for the price. There is some variance in the pricing of the programs in this review, but it is not very wide. Value, of course, is not exclusively related to cost. However, sometimes the best deal is not the cheapest, and sometimes the most expensive option does not provide the best function.

The Overall Rating represents a comprehensive view of how a product scored in the above
categories, and is the average of
those scores rounded to the nearest
half-star.