Head of FLS Appointed to IRS Committee Implementing Electronic Tax Return Filings

Electronic Tax Administration Advisory Committee Provides New Direction for Electronic Filing of Returns

DALLAS, TEXAS - 9/14/98 - Federal Liaison Services, Inc. (FLS) announced today that Fran Bartlett, president and CEO of FLS, was selected as one of 17 members of the Internal Revenue Service's first Electronic Tax Administration Advisory Committee (ETAAC). The committee will help the IRS plan its strategy for making electronic filing the preferred and most convenient method of filing tax and information returns. It will also provide an organized forum for discussion of electronic tax administration issues.

The committee's members represent leading software companies, tax services, non-profit associations, and financial and educational institutions. Formed as a result of The Internal Revenue Service Restructuring and Reform Act of 1998, ETAAC will leverage the combined expertise of its members to provide the IRS with a comprehensive overview of electronic tax issues relating to both public and private sectors, as well as business and individual compliance concerns.

"I'm honored to serve on the committee and look forward to contributing insight in the areas of electronic filing and e-commerce," said Ms. Bartlett. "This appointment provides more evidence that FLS is headed in the right direction. Our expertise in electronic tax compliance and reporting solutions dovetails perfectly with the goals of the IRS - to make tax compliance easier, faster and more cost-effective for businesses and individuals."

The movement toward electronic transmission of returns is strengthening. According to the IRS, more than 19 million individual taxpayers filed electronic returns in 1997, compared with fewer than 16 million in 1996. The agency hopes that the benefits of electronic filing - faster processing, better accuracy and quick acknowledgment of receipt - will result in four out of five taxpayers filing electronically by 2007.

"We are looking forward to working with this committee on our electronic filing strategies," said Robert E. Barr, IRS Assistant Commissioner for Electronic Tax Administration. "Its input will be of immense value in helping us understand and meet the needs of the taxpayer and practitioner communities."

ETAAC will hold four two-day meetings each year. Two will be public meetings, and two will be private working sessions. Their duties will include research and recommendations about current or proposed policies, programs, and procedures.

About Federal Liaison Services, Inc. (FLS)

Federal Liaison Services, Inc. is the leading provider of software solutions, outsourcing and professional services to employers for government reporting and compliance - automating the tasks associated with payroll tax payments and filings, wage garnishment processing, and W-2 and 1099 processing. FLS solutions are Windows-based, web-enabled and scalable to enterprises of all sizes. FLS clients include more than 300 members of the Fortune 500 and major government agencies.

Visit FLS online at www.flsinc.com or call 972/239-8881; fax 972/239-9540. The company's headquarters are located at 12001 N. Central Expressway, Suite 700, Dallas, TX 75243-3729.