FLS Awarded IRS National Account Status

New Government-Business Partnership Aimed at Increasing E-filing Options for Employers

DALLAS, TEXAS - 11/26/01 - Federal Liaison Services, Inc. (FLS), a leading provider of compliance software and services to major employers, announced today that it is the newest member of the Internal Revenue Service's National Account Program. Under the newly created program, the IRS works with private sector partners to develop and manage joint business plans that improve services to taxpayers.

A key goal of the program is to increase electronic tax filing options for businesses. FLS was chosen for the program due to its ability to offer electronic tax filing and payment options to employers throughout the U.S. As an IRS National Account, FLS will work closely with the IRS to create a strategic business plan aimed at increasing e-filing participation by employers, improving customer service, and simplifying the overall tax compliance burden for employers.

"The IRS has set aggressive goals for making e-filing the preferred method of tax compliance," said Sherrill Fields, IRS National Director, Diversified Electronic Filing. "FLS plays a vital role in that endeavor due to their significant number of customers and the large volume of tax returns filed by those customers. We look forward to further developing e-filing participation among our shared customers."

FLS files hundreds of 941 tax forms annually on behalf of its customers who outsource tax filing processes to FLS. In addition, payroll services companies and more than 400 members of the Fortune 1000 utilize FLS software to comply with federal, state, and local taxing agency regulations. Those software customers have the ability to file and pay their taxes electronically via FLS solutions.

"FLS is honored to be chosen as an IRS National Account, and we look forward to creating new strategies for reducing the compliance burden of employers," said Fran Bartlett, President and CEO of FLS. "This further solidifies our long-term relationship with the agency in creating new e-commerce and e-filing options for the nation's 6.7 million employers. We recognize the huge effort needed to accomplish the e-file strategy previously outlined by Congress. A closer partnership between IRS and FLS will help us both achieve our strategic goals."

Ms. Bartlett has formerly served two years on the IRS' Electronic Taxation Administration Advisory Committee (ETAAC). In addition, Connie L. Davis, FLS Vice President of Human Resources and Employee Services, currently serves on the IRS' Information Reporting Program Advisory Committee (IRPAC).

About Federal Liaison Services, Inc. (FLS)

Federal Liaison Services, Inc. is the leader in employer compliance software and services. FLS automates the tasks of payroll tax payments and filings, wage garnishment processing, and W-2 and 1099 processing. Clients include more than 400 companies ranked in the Fortune 1000, as well as several major agencies of the federal government.

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 75243-3715.