MONDAY MORNING GENERAL SESSION
Keynote - The Changing Landscape of On-line
Technology, Shifts in Strategy, and the Effect on Tax Systems - Steve Kolodney,
AMS
This presentation will focus on the current IT transition to an architectural
framework that depends on integration across new and existing systems and the
modernization of workflow to allow more self-service and greater data sharing.
Included will be a discussion of the impact of immediate budget priorities on
the approach to delivery of service. Steve is an entertaining and extremely
articulate speaker, relating technology to real business problems in a practical
way.
MONDAY MORNING BREAKOUTS
Total Cost of Ownership: What Is It "Really"?
- Robert E. (Bob) Barr, Dell Computer
In these trying budget times, legislatures and agency leadership are looking
everywhere for opportunities to save. As always, IT Budgets are on the list
and usually at the top of the list - both capital and operating budgets. This
presentation will take a look at the "total" cost of owning, implementing and
operating a computer application. Specifically, it will look at what makes up
the cost, what computer hardware and software vendors are doing to drive down
these component costs and what an agency can do to manage for the lowest total
cost of ownership and therefore manage for the highest return on investment.
The Emerging Law of Computer
Security and Authentication - Ben Wright, Attorney At Law
Ben Wright again joins us with his unique and entertaining
perspective on matters legal and technological, with some interesting
new case law having implications for e-commerce in general and
taxation in particular. As the Internet and e-commerce become more
routine, the courts and legislatures are telling us more about what
the rules should be for network security, computer evidence,
e-signatures. Ben will highlight new cases and laws addressing
liability for security compromises, methods for proving electronic
communications and the design of e-government transaction sites. He
will offer concrete suggestions for responding to these
developments.
How to Implement an Innovative
CRM Solution / Secure Messaging - Farley Beaton, VA
The Virginia Department of Taxation has implemented an integrated
CRM solution that provided service representatives state-of-the-art
tools and materially improved customer service. Implementing a
comprehensive CRM solution and the benefits that can be achieved will
be the focus of this presentation. Topics addressed will include an
overview of the CRM solution, how to implement an innovative CRM
solution, integrating various channels, the results of improved
self-service, and lessons learned.
MONDAY AFTERNOON BREAKOUTS
How Technology Can Save You Money! - Linda
Dollens, IN
Our speaker will be addressing the use of e-check, Q-matic, 2-D barcode processing,
and Indiana's new Data Capture System -- and how all of these things, as well
as its check processing and mail opening equipment, have saved time and permitted
them the flexibility to move positions around as needed.
FTA-IRS Tactical Advisory Group
(TAG) Activity Update - TAG Representative (Invited)
In April of this year a new state-federal group was chartered
designed to foster closer cooperation on e-initiatives between the
states and the IRS. Initially focusing on Marketing, E-models, and
requirements for the new 1120 Corporate e-Filing Program, the group
has gotten off to a strong start; come and learn more about this work
and how you can help.
Predictive Models for Enhanced Audit Targeting
- Texas Audit Scoring System - Panel
In this presentation, we describe the Texas Audit Selection Scoring
System, a statistically derived ranking system that helps audit
selectors throughout Texas to identify better leads for Sales Tax
audits. The underlying data mining technology leverages audit outcome
data from historical audits and generates a "score" for each current
taxpayer. Results show that audits performed on high-scoring filers
systematically result in higher tax adjustments and increased hourly
yield. Presenters: Texas CPA (TBA), Data Mining Consultants (Daniele
Micci-Barreca, Satheesh Ramachandran), SPSS (Bill Haffey)
Mandated E-File of Unemployment
Tax: The Florida Experience - Jim Evers, FL
Last year the Florida legislature passed SB 426 which requires
any employer who employed more than 10 employees in any quarter the
last fiscal year or any person who prepared and filed 5 or more
employer reports to file and pay electronically. This involves more
than 90,000 employers out of 360,000 employers; in addition the law
lowered the e-filing threshold for sales tax to $30,000 liability per
year. Florida is following the new mm-ref standard for UT and
offering free on-line web-based filing in addition to software
programs developed by software providers. This program has generated
a lot of interest from payroll providers as well as CPAs, and the
Department's experience in inplementation will be
described.
E-Government Vision for State Revenue Agencies
- Multiple Purpose Databases and Re-using Tax Data: A look ahead 3 to 5 years
- Tom Dibello and Dick Eppleman, Vertex Inc.
We take a look ahead 3-5 years and describe the tax technology
environment and its impact on how state revenue agencies will be able
to relate to citizens, businesses, and local governments through the
flow of tax data. The presentation tees up the opportunity for
multiple stakeholders to use certain databases for multiple purposes
in the tax compliance process leveraging the concept of re-using tax
data rather than recreating it for different purposes. The goal of
the presentation is to provide a vision for Tax and Technology
planners in State Revenue Agencies to use as guidance as they are
mapping their own digital strategies and IT strategies.
Massachusetts Tax Discovery Warehouse
Project: Creative Approaches to Individual and Business Tax Discovery
- Paul Panariello, Revenue Solutions, Inc.
In the latest phase of the Massachusetts Tax Discovery Warehouse Project, the
Department of Revenue has entered into the discovery of business and individual
taxes using 16 data sources and creative analysis approaches. This presentation
will describe the new discovery programs being implemented that involve lifestyle/asset
portfolio analysis as well as Economic Data Warehousing that will feed a whole
new set of benefits and advantages to the State, the taxpayers, and the Massachusetts
Legislature.
New E-Commerce Initiatives: Corp Tax Barcodes
& Partnership E-File -Steve Csogi and Irwin Nadel, NJ
The New Jersey Division of Revenue has expanded its use of 2-D bar
codes to the Corporation Business Tax return. We are also
implementing two methods for the electronic filing of Partnership
returns. We have worked with software developers to have them develop
product enabling electronic submission of returns, and have developed
a web application that will allow partnerships to file their returns.
This presentation provides an overview of how we implemented these
processes as well as an evaluation of the results.
Business Process Simulation: Integrated Performance
Management Scorecard - George A. Love, Accenture and Art Warren,
SAS
This unique Business Process Simulation application enables tax and
revenue departments to make more informed decisions with greater
confidence. Whether decisions involve process efficiencies, staff
planning or resource utilization, this application provides the
capability to model and compare existing and potential processes
along with their related costs and resource requirements. After
determining the most efficient and effective process to implement,
users can measure success and pursue fact-based improvements through
the integrated performance management scorecard.
Improving Tax Compliance Through
Technology - Charles Collins, Taxware
Experiences and historical perspectives guided by 30 years in tax
compliance will be presented, highlighted by a description of the the
technology provisions in the Streamlined Sales Tax
Agreement.
TUESDAY MORNING BREAKOUTS
New Federal-State Employment Tax (FSET) Progress
- John Myett, IRS-ETA, and Software Company Participant (TBA)
Come and hear about the January 2003 IRS rollout of the New Federal-State
Employment Tax (FSET) Program -- featuring XML-based Form 94X family
E-Filing. Software developer participation is growing and their experience is
positive thus far; a developer will recount the challenges and successes in
creating product for the IRS program; states are now being sought to participate
in the FSET Program. [This will be followed by a second session in which
the technical XML schemas are discussed.]
Success Stories in Automated Tax Form Data
Capture - Blaine Owens, Captiva Software
Numerous state agencies in California, Florida, New Jersey, Kansas
and others are seeing impressive return on their investments in
automated tax form processing software. Such software utilizes
optical character recognition (OCR) and intelligent character
recognition (ICR) technologies to "read" the information contained on
tax forms and automatically export the data into tax processing
systems with little intervention required from manual operators. This
software has allowed many states to reduce the number of required
data entry operators, increased the accuracy of captured tax form
data and reduced tax form processing times. This session will
describe how the software works and provide case studies of states
that have successfully employed it.
E-records Auditing: Data Manipulation, Analysis
and Interpretation, and Sampling Methods - Stanley Borawski and Dawn Baldwin,
Bull IS
E-records auditing with an emphasis on data manipulation,
analysis and interpretation at the transaction level, along with
statistical and non-statistical sampling methods. This is a subject
area that is drawing growing attention because it reduces audit time,
increase audit quality and accuracy and significantly improve revenue
recovery.
New PA E-TIDES E-Filing Program Enhancements
- Deb Wise, PA
This session will provide participants with information on the Pennsylvania
Department of Revenue’s Electronic Tax Information and Data Exchange System,
known as e-TIDES. E-TIDES is a secure website that allows for the electronic
filing of a variety of business taxes and the registration of Electronic Funds
Transfer. Topics to be covered include registration, the taxes and payment options
available, the mechanics, features and capabilities of the website, filing statistics
and future plans. A joint venture with the Pennsylvania Department of Labor
and Industry for purposes of leveraging efforts and improving efficiency and
the customer service delivered to those using online services will also be addressed.
Use of XML in New Federal-State Employment
Tax (FSET) Program - Terry Garber, TIGERS XML Standards Group
This session complements the previous FSET presentation and will
outline the technical XML structures defining the State Model XML
Schemas used in the FSET Program, and the change process in place
designed to foster additional state development and participation.
Web-Enabled Integrated Tax -
Building on the First Release - Cheryl Sullivan, WI
Come hear about our Lessons Learned: having put the first software
release into production, we have taken a step between project phases
to identify and evaluate what went well and what didn't as we move
from the business tax registration, accounting and sales & use
tax processing system we implemented (beginning in November, 2002) to
the next, major software release, to support individual income tax.
Also to be discussed are the value of using a phased approach to
minimize risks inherent to large information technology projects,
other benefits that have evolved in other areas of WDOR from the
Integrated Tax System project such as Portfolio Management, and the
establishment of standards and guidelines and incorporation of change
management into how we do our business.
Mobile and Wireless Solution for
Field Collections - Pat Wyman, Adea Solutions
Preview a mobile and wireless solution currently used in Texas and
specifically designed to increase efficiency of field collection
officers, providing greater revenues without increasing staff. This
secure, state of the art application uses Tablet PC technology and
wireless data services to provide each collection officer with
up-to-date taxpayer information, on-line tax forms with electronic
signature capture, and the capability to send and receive information
over a wireless connection as accounts are updated or
closed.
The 21st Century Revenue Agency: An On Demand Model - Dan Collins & Paul A. Racioppo, IBM Global
New IRS XML-Based E-file for
Corporate Form 1120 e-Filing - IRS (Invited)
The IRS is planning to roll out Corporate Form 1120 e-Filing in
January 2004, with intentions to facilitate Fed-State Corporate
e-filing in January 2005. Hear how the IRS developed this application
and evaluate whether your state wants to be a part of Fed-State
Corporate e-filing.
Paperless Tax Processing for
Business Taxes: Converting Filings from Paper to 100% Electronic -
Mark Koran, Govconnect
This presentation will cover the key aspects of successfully
converting business tax filings from paper to 100% electronic. This
presentation will show the savings achieved as well as the enhanced
customer service provided.
Revenue Management in the Public Sector-
Daniel Darche and Nikki Sandhu, Sierra Systems
Systems Revenue Management has long been a focus of the private sector as companies
try to predict consumer behaviours to optimize inventory allocation and pricing.
With increasing pressures to deliver its programs and services in the most cost
effective manner, the public sector is being driven towards another form of
Revenue Management - a means by which to maximize revenue realization and minimize
the cost of collections.
While transitioning to a consolidated Revenue Management model contains many
significant challenges, the critical issues for revenue agencies can be captured
within three broad categories: organizational structure, supporting IM/IT systems,
and IM/IT service delivery models. This presentation will review the concepts
of Revenue Management for Revenue Agencies, its key drivers and discuss the
critical issues.
Revenue’s
New K-1 Case Tracking System — Kevin Milligan and Andrew Bishop, PA
In June 2002, the Pennsylvania Department of Revenue was given the responsibility
of creating a new Pass Through Business Unit and implementing information system
tools within 6 months. The agency met the challenge by rolling out a rudimentary
system in November 2002, issuing its first letters in December and completing
initial tax assessments in January 2003. $10 million in assessments were achieved
by June 30, 2003. The new K-1 case tracking system has supported and controlled
the tax compliance work of 12 employees, sifting through and selecting appropriate
non-filer and under-reporter personal income tax cases from over 1.3 million
K-1s. Meanwhile the system has used middleware to leverage the existing functionality
of legacy tax and document management systems to conduct case examinations,
create accounts, send notices, issue assessments, and widely disseminate case
information. Plans are to continue the development of the K-1 system by extending
its connections to additional legacy systems and IRS individual and business
tax data repositories while using the robust business model for additional case
tracking applications.
HOSTED LUNCH
Luncheon Speaker - "The Continuing Challenges
and Opportunites of E-Government" - Steve Holden, Asst. Professor, E-Commerce,
Univ. of Maryland
Professor Holden, formerly with GAO and a key figure during his time with IRS
Electronic Tax Administration in IRS's drive to establish an Internet presence,
will report on the results of recent e-commerce research relating to drivers,
barriers, and the unique issues faced by government.
TUESDAY AFTERNOON BREAKOUTS
Expansion of IRS E-Services and Customer Portals - Susan Smoter, IRS (Invited)
(to be added)
Streamlining Tax Return
Processing with Seamless Integration of Data Capture and Document
Management - Lee Mikelson, VA
Virginia TAX has developed and implemented a total automated
image-based data capture system, leveraging 2-D barcode and other
advanced technologies, to process tax returns and payments. This
integrated system seamlessly ties together the document management
system with the agency's Customer Relationship Management software,
and provides Virginia TAX with extensive functionality. In this
presentation, Virginia TAX will discuss the real cost savings and
benefits achieved; including reduced processing costs, faster return
and payment processing, and increased customer service. Bottom
line…when the check is in the mail, the customer isn't on the
phone.
Preventing Identity Fraud in Claiming Refunds
- Barry Goleman, AMS
Millions of dollars are lost annually as a result of bogus refund
claims. While some perpetrators are caught, many continue to go
undetected. The private sector has pressing needs to assure valid
identities. Examples include enrolling customers in on-line banking,
issuing a lost password, providing credit reports -- and all require
a high degree of assurance that the institution is dealing with a
valid identity. This presentation will examine best practices for
preventing identity fraud in the private sector and how those
techniques may be valuable in preventing tax refund fraud.
(GOVT ONLY) State form coord.
session - Mitzi Crump, Moderator
State form coordinator session: This session is for state form
coordinators to discuss form approvals, Form Standards Document,
different processes (2-D barcode, scanband, etc.), feedback reports
for software companies, ways to improve relationships with software
developers, etc.
Streamlined Sales Tax Project:
Business Models - Juli Peterson, MN; Standards for XML Structures -
Terry Garber, TIGERS XML Standards Group
To fulfill the promise of the SSTP project, the business
requirements inherent in the Agreement need to be translated into
technical structures that enable the benefits of simplified
submissions and processing anticipated. Over the last 12 months,
representatives of SSTP and TIGERS have hammered out a great deal of
the design approaches to SOAP and XML that respond to these business
requirements. There is more work to do, but this session will
acquaint you with progress to date and give you a picture of what to
expect in your state's SSTP implementation.
The Promise Continues, Data
Quality From a Business Perspective - Alison Torres, NCR
The Data Warehouse is a great place to manage business decisions and
building it right, from the start, is a big help to enable that
management. This session will cover data quality issues that impact
business performance. The session is suitable for both IT and
Business users and includes actual customer experiences.
Session Outline:
Integrated Tax System with Enhanced Internet Registration, Credit Card Payment & CRM - Louis Panebianco and Tony Powell, FL Integrated tax system enhancements that will further improve user interaction with the system, enhanced internet registration, credit card payment and Customer Relationship Management software that will house enhanced inbound call handling and case tracking for audits.
Mandated Sales Tax e-File in
Wisconsin - Jane Anderson-Goldsworthy, WI
Our speaker will address sales tax e-filing initiatives,
including a Sales E-Filing Mandate aimed at paperless sales tax
filing, with an additional focus on Wisconsin's XML-based file
transmission process with implementation in June 2003. Other topics
will include Sales TeleFile -- this new initiative is scheduled for
implementation on October 31, 2003; and the Sales Internet Filing
Process, implemented in October, 1999, growing to support about 30%
of the sales tax filings each month.
Increasing Revenue: the State as
an Enterprise: ERP, CRM, & Data Warehousing/Mining - John
Greaney, Dun & Bradstreet
Enterprise Resources Planning (ERP) systems, Customer Relationship
Management (CRM) software, and data warehousing/mining are not just
for businesses, anymore. As states implement these technologies, what
is the impact on departments of revenue? Is a taxpayer your customer?
How do the differences and similarities between the private sector
and government affect the use of technology solutions? How can
taxation organizations leverage an investment in technology to drive
more revenue?
How Agencies Can Leverage Information Services
to Enhance Performance and Reduce Fraud - Bob Chouinard, ChoicePoint
State budgets continue to tighten as economic issues impact revenues
and federal funds shift to homeland security initiatives.
Implementation of innovative information services can support tax
collection and fraud reduction efforts, helping officials to locate
non-filers, identify assets, and establish links between taxpayers.
These remarks will draw from work with the IRS to illustrate how
state tax administrators can leverage information services to enhance
revenues and reduce fraud, at a fraction of the cost of complex
technology procurements.
WEDNESDAY MORNING BREAKOUTS
What An SSTP Future Will Look Like: Multistate
Electronic Sales Tax Prep & Filing - Steve Rodgers, CCH.com
Finding a way to bridge the gap between taxpayer and tax administrator:
with the implementation of the Streamlined Sales Tax Project (SSTP) Agreement
on the near horizon, the technology that allows multistate sales and use taxpayers
to collect, remit and file their taxes is here. What an SSTP future would look
like for both taxpayers and tax administrators, and how that future will play
out, is closer than most realize. The technology is here to allow tax administrators
vary their taxability AND to deliver collected tax information to them in whatever
types of formats/requirements necessary.
A New
Framework for Tax Administration - Karla Pierce, Microsoft
Revenue Agencies all over the world are being challenged to close the so called
"tax gap", maximizing taxes collected against operating dollars spent
and ensuring compliance with tax laws, while reducing the taxpayers' administrative
burden. Discussed will be a tax administration framework which offers a new
paradigm for revenue agencies, transforming their operations to better:
-Increase collections
-Improve service to taxpayers
-Streamline business processes, and
-Reduce ongoing cost
Examples of support for a variety of State & Local governments with this
framework will be provided.
(GOVT ONLY) IRS Electronic Security Safeguards
Pilot - Delena Bratton, IRS, and Greg Bril, Booz-Allin Hamilton
If
you are a tax agency and receive Federal Tax Information the IRS requires that
you demonstrate that you are properly protecting it. The IRS is completely
revamping its oversight audit program that monitors the states compliance with
federal requirements. The change is radical, the new process is exciting
and the early results are promising. Come see what your future Federal
Safeguard Reviews might look like.
Development of State Tax
Jurisdiction Sourcing Databases - Jim Evers, FL, and Raymond Philen,
WA
Florida and Washington State have developed Tax Jurisdiction Sourcing
tools (web and file download) to aid taxpayers and vendors in
ensuring that correct tax rates are applied based on transaction
situs. Assuming more and more importance with each passing day in our
increasingly mobility-obsessed society, this session will include a
description of each state's resource and some of the challenges of
creating this capability.
Reduction of Web Costs Via Use of a Distributed
Application Delivery Platform - George Economou, Akamai
There are now efficient new ways to run tax applications online
on a faster, more scalable, more secure, and lower cost deployment
platform. Using a distributed application delivery platform on the
Internet can significantly reduce up-front and operational costs for
online Web properties and applications. Customers such as the IRS use
such services to improve performance and usability of their online
presence, scale on demand for application needs and unpredictable
audience sizes, and protect against denial of service
attacks.
(GOVT ONLY) IRS Electronic Data
Exchange Pilot Project - Rod Sterling, IRS
Since early 2003 an IRS-State Electronic Data Exchange Pilot
Project has been underway that is aimed at replacing tape/cartridge
exchange with electronic access. Certain lower-volume and appropriate
Extract exchanges have been targeted, including Levy, Taxpayer
Address Request, and other smaller volume files. The Internet was
selected to make these exchanges, although older media will still be
available for some time. The IRS General Liaison Division is involved
on behalf of the states and will report on progress.
Geographical Information Systems
(GIS) Components in Integrated Tax Solution - Ashwini Chharia,
Tatainfotech
This session would cover how GIS can be used to perform taxpayer
analysis, revenue analysis and non-compliance analysis. The GIS
component can provide the ability to map taxpayer information using
graphical tools and analyze relationships of different types of tax
data. It can enable agencies to locate and describe each parcel of
State, County and City more efficiently. This also ensures that
taxpayers are linked to the appropriate address.
Trends in Tax Administration Outsourcing:
Strengths and Weaknesses and a Step by Step Guide - Mark Cox, MGroup
A number of tax administrations worldwide have begun to outsource
certain core and non-core functions to IT services and data
processing companies. Research suggests that the volume of outsourced
tax processing will double over the next five years, and that
outsourcing will soon become the fastest growing segment of the
federal and state technologies sector. However, experience has proven
that outsourcing is very risky for both revenue administrations and
for the outsourcer and that poorly planned initiatives are doomed to
failure. Based on experiences from UK, Australia, France and most
recently in the Philippines this presentation will illustrate
thestrengths and weaknesses of different types of outsourcing
programs and provide a step by step guide for tax administrators who
are considering outsourcing. It will focus on the operational,
technical, financial, legal and organizational issues affected by
outsourcing and make in-depth recommendations about appropriate
program management and project planning techniques to ensure
effective and efficient outsourcing.
Decision Analytics to Turbo Charge Collections
- Stefan Becker, AMS
By the very nature of its work, tax agencies need to achieve a delicate
balance of enforcing tax compliance while providing taxpayer service. A common
belief is that these paradigms are inversely related; to increase one means
decreasing the other. However, a number of innovative tax agencies now utilize
the power of decision analytics to increase compliance while at the same time
expanding taxpayer service programs. Decision analytics refers to the application
of qualitative and quantitative data analyses to derive the optimal collection
treatment - one taxpayer at a time. Incorporating many concepts from private
industry, it enables tax collection managers to evaluate taxpayer characteristics
and forecast potential behavior patterns. At the core of these initiatives is
the evaluation of taxpayer risk. By obtaining an assessment of risk, tax collection
managers are able to allocate resources to those delinquent taxpayers with the
highest risk. At the same time, adopting a less intrusive compliance approach
and providing self-service options to those delinquent taxpayers with the lowest
risk significantly improves taxpayer service. The presentation would illustrate
the benefits states have realized in using decision analytics and discuss practical
operational improvements that result.