TO ANSI ASC X12G TG2 and TIGERS Attendees

 

FROM Dan Cornwell

Illinois Department of Revenue

ASC X12G TG2 Secretary

 

DATE April 24, 1998

 

SUBJECT: ANSI ASC X12G TG2/TIGERS Meeting Minutes

April 1 - 3, 1998 Orlando, FL Interim Meeting

 

 

Included as a text document attachment are the minutes for the last

meeting. They are also being included as text below for those of you

that have trouble receiving attachments. There are 11 pages in this set.

This information should also be available shortly on DISA's

web site at http://www.disa.org. If you have any questions, my

phone is 217 785-8798 or E-mail at "dcornwell@revenue.state.il.us".

 

***************************************************

 

 

Document No:: ASC X12G/TG2/98-094

ASC X12G TG2 Tax Information Interchange Task Group and

Tax Information Group for EDI Requirements Standardization

(TIGERS) Interim Meeting Minutes

Orlando, FL

4/1/98 - 4/3/98

Prepared by: Dan Cornwell - TG2 Secretary

Illinois Department of Revenue

 

 

Wednesday April 1, 1998 - Tax Information Group for EDI

Requirements Standardization (TIGERS)

---------------------------------------------------

 

Terry Garber opened the meeting with the tentative agenda.

The planned agenda:

 

Wednesday 4/1/98

* Guest Speakers

* Mapping Presentations - Sales, Withholding

 

Thursday 4/2/98

* TS 521 Implementation Guide

* TS 540 Implementation Guide

* Lockheed Martin 521 Implementation

* TS 248 Account Matches

* National Child Support Reference Model

 

Friday 4/3/98

* Motor Fuel Combined Mapping

* PBI Uniformity Status Report

* TXP Banking Convention Update

* IL IFTA Map

 

Jonathan Lyon (FTA) introduced the first guest speaker, Tom

Pate (Consolidated Information Systems, Inc.), who was

formerly with Disney EDI IS staff. Tom noted he started at

Disney as their only EDI person.

 

Tom said EDI involves not only the technical aspect but the

business issues which make up the EDI Infrastructure. The

challenge is in balancing management, the business

community and technical areas. It was stressed that the

management and business areas must be addressed. In doing

this other resources can be leveraged and you can also find

the internal barriers that may exist.

 

Tom said some goals are reduction in cost and meeting or

exceeding customer expectations. He noted EDI is not a

short term IS project but a company commitment. This

concept must be conveyed to management. EDI must be

constantly nurtured within a company. You must understand

your cost of doing business to be effective. You need to be

able to put a dollar value on savings with EDI and convey

why EDI is important.

 

From a business perspective, you can reduce errors, enable

redeployment of staff, and reduce hiring new staff. Tom

indicated IS isn't really where things happen, but rather in

the business areas. The more EDI people can become team

players in the business area, the better. You must add

values to the business area and you should publicize your

EDI successes.

 

Tom said that the technical perspective involves many issues

such as responsiveness requirements, partnering with

business areas, providing leadership and keeping informed on

new technologies. Tom said in providing leadership, you

need to recruit EDI champions. You need to be the focal

point for the business areas for EDI.

 

Tom had several humorous ways of pointing to trouble with

your EDI program such as when your entire EDI staff has left

for Year 2000 consulting. In summary Tom said the EDI

Infrastructure is more than a technology issue, it is an

issue which must embrace both the business and technical

areas.

 

The next presentation was from Ray Penn (TranSettlements

Network Services). Ray said he is Manager of Sales Support.

He said his job is very challenging in meeting customers'

expectations. He noted that for the first time in history,

we have the ability to offer a product, and proceed through

all the business steps to delivery of the product to the

customer without exchanging one piece of paper. Ray said

his background is in the transportation industry, which was

one of the first industries to use EDI.

 

Ray noted that there is now no single source solutions to

Information Technology problems. Combinations of

technologies must be used as a well managed team to satisfy

customer needs. There are no more single source solutions.

The Internet is a new technology that is a tool to utilize.

This global network of networks is one of the technologies

whose ease of use is definitely a plus.

 

EDI over the Internet can be implemented by just using the

Internet as a pipe to carry data by utilizing File Transfer

Protocol (FTP). A file transfer that used to take over an

hour on dial-up communications may now take about 60

seconds. Ray noted FTP is extremely fast and also does data

integrity checking. He noted a term "Internet Year" is

about 6 months and soon will be 3 months. In addressing

security, Ray said in todays environment the pipe is

encrypted, not the data file. Ray feels FTP is far superior

to dial-up communications.

 

The other method of EDI over the Internet is doing some sort

of document or process while on the Internet.

 

One approach is a third party with software. Ray indicated

that mainly the Fortune 1000 companies are doing EDI. Most

smaller companies don't. Forcing a particular software can

help ensure accurate data, but can be prohibitive for some

trading partners to implement. Ray says he doesn't think

this is an advantage by forcing software use by a trading

partner, whether issued by you or a third party. He said a

new approach is where the third party becomes an intelligent

gateway, managing your traditional EDI or Web based forms.

Ray said one of the new ways to do EDI is Web based forms

which only require using a Web browser. Ray noted that we

as a taxing agency can develop a web form that incorporates

all of our EDI requirements. The output could then be an

EDI file delivered into our mailbox.

 

A discussion was held on what are taxing authorities

responsibilities in offering electronic data delivery

alternatives. The general concensus was that many

alternatives will have to be offered in the future,

including Web forms, EDI dial-up, fax, etc. Web based forms

only require a PC and Internet access. Ray said this will

not guarantee accurate data, because keying errors can still

occur. He said the number of trading partners will

definitely increase. One advantage to Web based forms is

that changes to the form can occur instantly to all, instead

of each trading partner's software having to be updated.

 

Ray said the Internet offers a new and inexpensive global

communication medium to trading partners of all sizes. He

noted our jobs are to find the technologies and manage them

to the advantage of our customers.

 

After the TIGERS meeting adjourned, Jonathan Lyon (FTA) held

an informational meeting for states currently using

TaxConnect. This was to brief members of the current status

of the TaxConnect VAN. Additional information can be

obtained from Jonathan Lyon (FTA).

 

 

Thursday April 2, 1998 - Tax Information Interchange

Development (TG2)

---------------------------------------------------

 

Terry Garber (Task Group Chair/SC) went over the revised

agenda with some item rearrangements to fit participant

schedules. Evelyn Lopez (PA) and Debbie Wise (PA)

distributed their Employer Withholding EDI mapping. Dan

Cornwell (IL) noted that at the last X12 meeting, Jill

Maloney (PA) had indicated she would take a look at the New

York mapping model of multiple filers per one 813. This

uses multiple TFS loops, one per taxpayer. Debbie indicated

their mapping does not accommodate this. She said she will

go back and research, talk to payroll providers, and

possibly change to this method if the need is there.

 

For the benefit of some new attendees, a discussion was held

on what TG2 and TIGERS strive to do in standardizing

implementations of tax related transaction sets.

 

Next, Ray Grim (WI) went over the EDI Combined Reporting Map

for Motor Fuel. He said he represents the FTA's Motor Fuel

Uniformity Committee. Ray went through a brief history of

developing the standard Motor Fuel forms and the progress of

EDI for Motor Fuel Uniformity. He said recently they have

developed a Combined Reporting Map. A brief overview was

given of the former three individual Motor Fuel mappings

which have been combined into this new mapping. The new

mapping uses the 813 with a Terminal Operator, Supplier, or

Carrier information being carried at the TFS level of Table

2. The Table 1 content identifies who is reporting,

identification numbers, etc. If there is no activity, a

corresponding TFS loop must be sent showing no activity.

This mapping reduces the amount of data by eliminating

redundancy in reporting. There is also one TFS looping

structure which will accommodate schedules. Stan Whaley

(FL) and Jonnathan Lyon (FTA) indicated there are additional

codes that will be needed for the schedules.

 

Ray said this new structure will accommodate all levels

required. Ray said they may want to develop guidelines such

as if you are a terminal operator/supplier, which data

segments are required for this specific case. Ray then went

briefly through the combined mapping document. Ray said

this group is the first to see this combined mapping. Ray

said there is an effort to create a combined paper document

to enable filing all three returns. Ray said he "forged

ahead" to produce the combined EDI mapping. He said this

effort to combine these is in response to industry

representative requests. Ray will be contacting some of

these people to get feedback on his work. Ray said

Wisconsin plans to implement this mapping by January 1,

1999. A discussion of what version/release to base this on

was held. Jonathan Lyon said that because of the delay in

implementation time, it possibly should be based on version

004010. Ray said he may spell out in the documentation the

differences for using 003070 and 004010 standards.

 

Ray said his intention was to present this map for our

feedback, hopefully soon. Terry Garber (SC) said she thinks

the group needs to take this back and study before we can

comment. Ray said he would like to test this mapping with

trading partners during May, June, and July and implement in

production in Wisconsin in January 1999. Wisconsin would

probably be the lead state in implementing this mapping.

Terry Garber (SC) asked if this combined effort is being

done under the auspices of the FTA Uniformity Committee, and

Ray said yes. Ray said that in April and May, he would like

comments supplied and changes completed. He noted that if

the FTA Uniformity Committee adopts the mapping, states will

be encouraged to upgrade or implement using this mapping.

Terry Garber (SC) encouraged everyone to take this back and

review for Ray.

 

The next topic was Child Support Enforcement. Laurie Rhea

(CA) introduced herself and gave a recap on the use of the

521 Income or Asset Offset for wage garnishment. She noted

that new legislation has prompted the formation of a new

working group to come up with a model of all the pieces

involved in Child Support Enforcement. This would include

new hire reporting, wage garnishment and financial matching

among others. It was noted that Child Support Enforcement

stems from the "Personal Responsibility and Work Opportunity

Reconciliation Act of 1996 " termed PRWOA.

 

The work group came up with a high level overview of what

this process involves. This overview handed out will be

incorporated in the Reference Model for Child Support

Enforcement. This model will include the new hire

requirements at the state and federal level as well as the

financial institution data match requirements. It was noted

that there are many paths data can flow. In financial

matching, data can flow from the state agency to the

financial institution, with a response coming back from the

financial institution. Data can also go from the state to

the federal level. It was noted that child support case

information can be shared among the states involved.

 

Wage garnishment is also included. This is where an agency

can issue a notice of wage garnishment to an employer. A

levy could also be issued to a financial institution to levy

financial assets. The work group is concentrating on new

hire reporting, financial institution data match, and the

wage garnishment. It is not addressing as yet, the data

exchange between states. Jonathan Lyon (FTA) also

distributed several handouts from Pat Hagen (Office of Child

Support Enforcement) as well as other supporting

documentation. Jonathan noted he has attended two meetings

of Pat Hagen's Financial Institution Work Group. Pat's

group has developed data formats for the bank match

process, based on batch 1099 reporting formats. Jon is

interested in seeing whether these data formats can be

mapped into EDI transaction set format, possibly the 248.

 

Terry Garber (SC) gave a brief overview of the development

of the 521 Income or Asset Offset as a garnishment vehicle.

Jonathan Lyon (FTA) noted that the Financial Match

Specifications Handbook is what we need to take a look at to

determine if this data could be mapped to the 248 Account

Assignment/Inquiry and Service/Status transaction set.

Laurie Rhea (CA) said she will distribute a task list that

their work group has developed. Jonathan Lyon (FTA) noted

that it varies from state to state on who is responsible for

administering the New Hire regulations.

 

After lunch, Mike Teller (Lockheed Martin) gave a

presentation on their child support enforcement activities.

They run child support activities in a number of states.

Their goal is to cut in half the amount of time it takes to

get payments to the custodial parent. The problem is there

is a large amount of variation among states in implementing

child support enforcement.

 

Lockheed Martin is developing an application that takes

various inputs from the 50 states and using a set of rules,

putting wage assignment orders into a database, resulting in

a 521 Income or Asset Offset format which will go to the

Employer. If the employer cannot accept the 521, Lockheed

Martin will try to accommodate them in the format they need.

Mike said their database will be driven by the data supplied

by the states, therefore the closer the states map to the

same 521 format, the better. In this scenario, Lockheed

Martin is serving as a router for wage withholding orders.

This aspect is termed the Electronic Processing of Wage

Assignments. This is being created for a pilot right now

for the Defense Department and it is hoped that it can be

rolled out to the state Child Support Enforcement offices.

 

Mike gave a brief overview of how the Child Support

Enforcement Office works. The current process is very paper

intensive, involving many parties such as lawyers, parents,

etc. The "back room" is where the payments are received.

They could be very large checks or relatively small checks.

EFT payments are also used. Some research has to be done on

unidentified payments. Funds must be posted, deposited, and

clients records have to be updated. Child Support payments

must then be printed and mailed. This illustrates some of

the complexity of the process involved in the process.

 

The last part of the process is capturing the direct

deposit. A direct deposit file is sent to the bank and

finally distributed to the obligee's (custodial parent)

bank. Mike said he could be contacted for presentation

copies at E-mail: f.michael.teller@lmco.com

 

Virginia, Maryland, Defense Financing and Accounting Service

(DFAS) and Lockheed Martin are all involved in a pilot of

this program. Mike indicated that they currently do new

hire reporting for Paychecks and the State of Maryland. He

indicated they would like to move to the 540 Notice of

Employment Status transaction set for this function.

 

Bonnie Walters (DFAS) said that they have gone through a

consolidation of garnishment work into one center which is

for all D.O.D., with a population of 5.6 million people.

They have done some reengineering to develop an integrated

garnishment system. They are hoping in the future to get

garnishment information electronically from the states to

populate their data fields and drive their process. They

have been starting to take a look at the 521 Income or Asset

Offset. Paul Sullivan (DFAS) said they are working on

looking for automation opportunities. He noted the Defense

Information Systems Agency (DISA) is the hardware entity

that must be used.

 

It was noted that the pilot would be with withholding orders

going through Lockheed Martin, which is a trading partner

with DFAS, to get the DOD wage garnishment. However,

individual states in the future could go directly to DFAS.

This would be in the DFAS established 521 format.

 

Next, Laurie Rhea (CA) went over some information that was

sent from Christine Wilder (ADP). This document included a

list of tasks and assignments for work. Laurie solicited

suggestions or additions to the listed tasks. She noted

Marcia Larson (ICESA) will probably not be directly involved

due to her work load. Laurie Rhea (CA) and Jonathan Lyon

(FTA) were tasked with developing an overview of the

process. This overview was handed out earlier today.

Laurie asked for any comments on the overview to be back to

her by the end of April. She noted this is just the

beginning of the business model. It was agreed that

business scenarios should be added to the reference model

educational document. Terry Garber (SC) suggested that

other related issues be included, such as various reporting

time requirements be included in the document.

 

The next section of work is specifically on the 540 Notice

of Employment Status implementation guide that Christine

Wilder sent out as a first draft. Terry Garber (SC)

suggested including business scenario mock-ups and data

mapping examples. She also suggested a flowchart be

included to refresh in peoples' minds where the 540

transaction set fits in. Laurie said that this set of

information will be repeated for the 521 and 248 transaction

sets. Laurie noted the 820 Payment/Order Remittance Advice

transaction set would also have to be included in the

document.

 

Stan Farmer (MO) suggested a "big picture" flow be included

with the overview. Terry Garber (SC) suggested that a set

of "recommendations for startup" be developed to aid people

that are new to the process. Terry suggested in the

startup recommendations there are references to third party

processors. Laurie Rhea (CA) said Byron Warren (Finance

Center, U.S. Treasury) had agreed to take the 521 Income or

Asset Offset maps and map them into an 820 Payment

Order/Remittance Advice. In the past Byron had noted that

financial institutions would probably not send back a 521s,

only 820 transaction sets. Byron will also try to map Pat

Hagen's (Office of Child Support Enforcement) Financial Data

Match information into the 248 transaction set.

 

Terry Garber (SC) suggested that we assign tasks to people.

The new hire process overview could logically go to

Christine. The bank match overview could possibly be

done by Byron Warren. Stan Whaley (FL) will work on

developing an overview of the related issues regarding state

to state data exchange of information. Buster Pfaender (FL)

will also help work on this. Individual case scenarios will

be developed by the people doing the individual data

mappings. Christine Wilder (ADP) for the 540, Laurie Rhea

(CA) for the 521, Mike Teller (Lockheed Martin) for the 820,

and the 248 is still to be assigned. The "big picture"

flowchart may be developed by Laurie. Terry Garber (SC) and

Mike Teller (Lockheed Martin) will work on the

recommendations for start-up.

 

Terry Garber (SC) said it would be good to have the various

pieces together to have something to hand out. Hopefully by

June, we will have a first draft of the pieces of the

product.

 

Next the Child Support Enforcement summary document of which

Laurie Rhea (CA) and Jonathan Lyon (FTA) had worked on was

reviewed. Some wordsmithing, elimination of redundant

wording, and reorganizing of paragraphs was done. An

overview of the X12 will also be incorporated, along with

developing the "sales pitch" aspect of the document. Laurie

will make the suggested changes and distribute them for

review well before the June meeting in Columbus, OH.

 

Laurie will modify the 521 Tutorial document to make it

compliant for the standard version release 004010. This

will include the new date format and delete the century data

element. This will be changed by the June meeting.

 

 

Friday April 3, 1998 - Tax Information Group for EDI

Requirements Standardization (TIGERS)

---------------------------------------------------

 

Dan Cornwell (IL) presented the Illinois IFTA mapping. He

noted in reviewing the mapping that the TRN Trace segment

was in the segment list but not in the segment details. Dan

said he would check to see if this was indeed needed. Terry

Garber noted that not all the filing status options were

covered that appeared on the form. Dan said he would check

on the specific ones that were required.

 

Dan Cornwell (IL) presented the 151 PBI01 Error Code

uniformity work done to date. Dan noted that he had

contacted Lissa Henderson (NM) to solicit the Petroleum

Industry Data Exchange (PIDX) views on supporting the

development of one error code list. Lissa had E-mailed Dan

supporting the development work and saying she had forwarded

Dan's proposal to some PIDX folks. At the time of the

meeting, no response had been received back.

 

Dan gave a brief overview of the PIDX error code structure

that the modified structure is based upon. The error code

structure is comprised of a system major and minor codes

combined to indicate general and specific error conditions.

Dan explained he had used this basis and tried to determine

the changes required for expansion to other state's tax type

needs. Basically the changes included expanding the major

code length from 3 to 4 total digits, renumbering, and

adding two new major error categories; "Payment Errors" and

"General Data Errors". There was an expansion of the minor

code length from 1 to 2 digits, renumbering, and the

addition of two minor error codes; "10" for Duplicate, and

"11" for Tolerance.

 

Dan illustrated how the Illinois Sales Tax error codes could

be converted into this new structure, which should lend

itself to other state's needs. The general concensus was

the expansion was needed. Dan said by the next meeting, he

will try to contact the PIDX people to get their response to

his E-mail that Lissa Henderson (NM) had forwarded. Other

states were asked to take a look at their error code needs

and see if this PBI01 error code structure works for them.

 

Stan Whaley (FL) presented their Sales Tax mapping. Stan

noted the TIA codes presented are not from the standardized

list. He said they will contact Brooks Knight (TX) to get

the standard codes to use. This mapping is based on version

release 003030. Stan has presented the proposed changes to

bring the mapping up to version release 003070. The main

difference with the upgrade would be the use of the

standardized error codes. Another addition will be using

the BPR for EFT purposes, instead of the older version which

relied on separate TIA segments to convey EFT information.

Stan said he will have the completed revised sales tax

structure done by June.

 

Terry Garber noted that she will be attending the TAS

meeting next Wednesday to answer questions on the 283 and

154 transaction sets.