Enhancing IRS Performance

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Enhancing IRS Performance through IT Modernization
AFCEA Bethesda Mission IT Day May 6 2008
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Four Pillars of Modernization Modernized E-File,
CADE, Account Management Services Data Strategy

• Electronic filing to a majority of return types
  and payments, reducing taxpayer burden by
  improving quality, efficiency and service
  delivery
• Expanded options for electronic filing, payment,
  communication services, and other automated
  services
• Data capture and up-front issue detection and
  resolution

• Improve data quality to enable business to make
  data-based decisions
• Consolidate redundant data repositories
• Expose and enforce common data standards to a
  wider audience
• Reduce point-to-point transfers to enable
  collaboration across systems/ applications

Treasury, GAO
Revenue Accounting Financial Reporting
Workflow, Work Management, Case Management,
Pending Updates Customer Communications
Daily/ On Demand
Taxpayer (Telephone Correspondence)
Capture Data From Paper
Data Strategy
Modernized E-File
Returns, Payments, Correspondence
Taxpayers
Customer Service Systems
Daily
Submissions Processing Paper
Validate Perfect Data
Examination Systems
Taxpayer Accounts
Daily/ On Demand
Taxpayer (Telephone Correspondence)
Customer AccountData Engine
Collection Systems
Electronic Receipt of Submissions
Tax Returns
Account ManagementServices
Electronic Returns, Payments, Correspondence
Criminal Investigation Systems
Case / Activity History
Daily
Daily

• On-line tools to view and update taxpayer data
  (adjustments, transfer money, apply credits, and
  do other updates to taxpayer accounts)
• Record activity history
• Monitor account for follow-up activity
• Compose and print notices
• Generate notices

• Post Transactions (tax assessments, payments,
  interest, penalty, extensions, bankruptcy,
  address changes, etc.)
• Issue refunds
• Identify account issues
• Generate notices
• Financial balance and controls

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Enhancing Business Performance in the Four
Pillars of Modernization

• Processed more than 2.3 million returns in 2007
• 3 processing error rate vs. 24 in
  transcription-based paper processing
• 100 data capture

• Standardizing account and return information
• Single point of access for retrieval of tax
  return data from multiple data stores

Web-based e-filing for large corporations, partner
ships and tax-exempts
Enterprise data models consistent with Enterprise
Architecture
Data Strategy
Modernized E-File
Customer AccountData Engine
Account ManagementServices
Daily master file processing for 24 of todays
individual filers
Real-time access to taxpayer account data

• Processed more than 29.3 million returns and 43
  billion in refunds in FS 08
• Processing refunds on average 5 days faster than
  legacy

• Daily authoritative account data for 33,539
  Customer Service Reps
• Over 154,000 electronic transcript cases
  distributed to campuses

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Delivering Taxpayer Services and Operational
Efficiencies through other Modernization Efforts
E-Services
Converts taxpayer paper correspondence into
electronic images
Web portal and value adding e-Services for tax
practitioners

• Over 26 million Transcript Delivery Services
  requests - transforming paper requests to
  e-transmission allowing same day receipt
• Processed over 300 million TIN matches since
  launch uncovering over 56.9 million in potential
  unpaid taxes on 1099 income

• Image-based case management inventory and
  speedier resolution of taxpayer issues
• Improved inventory control and workload
  balancing resulting in significant savings to
  the IRS

Internet Refund Fact of Filing
Integrated Financial System (IFS)
IRSs new accounting system
Instant refund status information for taxpayers

• Processed over 27.2 million refund status/fact of
  filing inquiries in FY 08
• Available in Spanish as of January 2008

• Manages IRSs 10.9 billion operating budget for
  administering tax payments and collection and
  enforcing tax laws
• Eliminated labor intensive and costly manual
  process, and increased reporting accuracy

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Going Forward Examples of New Modernization
Efforts
SWETRS
My IRS Account
Web-based application to automate workload
selection of employment tax cases Analyzes and
scores data to identify the most egregious
non-compliant cases
Self-service internet application that provides
taxpayers with immediate online access to their
return and account information. Taxpayer can view
an on-line transcript
MeF - 1040
RRACS
State-of-the-art capability to ensure the
integrity of all IRS financial transactions and
to streamline financial reporting The redesign
will add traceability between the Internal
Revenue Accounting Control Systems (IRACS)
summary records and the IRS processing systems'
detail records
Modernized application for the Form 1040
individual filers. 100 data capture Transactiona
l-based returns processing More robust error
checking and data validation performed up front.