Enterprise data to revenue (EDR) project
One of our strategic goals is to modernize our information technology (IT) systems and processes across the enterprise. This modernization effort to our operations is to increase efficiencies and services to taxpayers, maximize transparency, and increase revenue. To support this goal, we developed long term IT strategy called Tax System Modernization (TSM). TSM includes 3 major phases:
- Phase 1 (EDR)—Laid the foundation for TSM by delivering the infrastructure and software architecture for a consolidated platform with common business functions and services
- Phase 2 (EDR²)—Build upon the platform implemented in EDR to deliver enterprise case management and modeling, decommission outdated legacy systems, and increase services to taxpayers
- Phase 3 (EDR³)—Extend the functionality implemented to deliver an enterprise tax accounting component and additional enterprise services. With Phase 3, the TSM initiative will be complete and our tax programs will be integrated onto a common modern platform
EDR (Phase 1)
EDR was the first phase of the Tax Systems Modernization effort. The project focused on creating process improvements resulting in efficiencies, new service options, and increased revenue. The project spanned 5 years, 2011 to 2016, and generated approximately $3.7 billion in additional revenue over the life of the project and an additional $1 billion annually.
EDR included 5 major components:
- New return processing system—Automated processes with real-time validation, data capture, and fraud detection for personal income tax and business entity returns
- Improved analytics—Centralized warehouse making data accessible to legacy systems, users and enterprise data modeling mart.
- New self-service options for taxpayers and representatives - Secure access to online tax information and services, such as viewing returns, payments, withholding, chat, send message and much more.
- Business improvements—Correspondence imaged and routed electronically allowing for efficient case assignment and processing of work.
- Improved legacy systems—Improved notices for taxpayers and enhanced enforcement tools for collection staff.
EDR brought more self-service options and account information to MyFTB for taxpayers and representatives. New features included:
- Secure chat
- Sending electronic messages
- Filing a power of attorney declaration
- Submitting request to skip an installment payment
- File a nonresident withholding waiver request
- File a protest to an FTB issued notice
- Viewing filed returns
- Viewing payments and withholding
- Viewing correspondence and notices
- Viewing accounting details
- Updating address, contact information and delivery preference
EDR² (Phase 2)
EDR² is the second phase of the Tax Systems Modernization (TSM) effort and will build upon the successes of EDR. The primary focus is to build upon enterprise process improvements, serve more taxpayers and increase revenue for the State of California.
EDR² will include 5 major components:
- Expanded Case Management
- Move all business systems on to 1 enterprise case management system by adding audit, collections and filing enforcement into our current case management system
- Continue to automate manual processes
- Decommission aged legacy systems that are outdated and siloed
- Increased customer service - Provide new communication options, new education services and options for taxpayers to self-correct
- Expanded data warehouse - Continue to centralize our data into one enterprise platform.
- Increased audit modeling and fraud detection - Using new data and dynamic modeling strategies to proactively approach noncompliant behavior and address the tax gap
- Business improvements - Improve case selection, workload management, and knowledge management