EForms and XML at NYS Dept of Taxation and Finance

1. eForms and XML atNYS Dept of Taxation and Finance

2. Our eForms Roadmap

3. 3 Corporation Tax Electronic FilingBusiness Problem The IRS will establish a clearing house of all large CT filers returns. The IRS will then send to the states all of their relevant information in a standard XML format. The filing will contain images and data, and can approach 1 Gig per filing. DTF will accept and acknowledge these returns, prepare them for processing within the current systems. Tax will keep all data in a retrievable format for reporting and audit selection. Data should also be available in online applications (transcript). Internal Needs… Map XML data to eMPIRE R2 Storage of XML data Retrieval/display of XML data Control flow of transaction Internal Needs… Map XML data to eMPIRE R2 Storage of XML data Retrieval/display of XML data Control flow of transaction

4. Corp Tax e-file High Level Process diagram System was developed in Prototypes: Web Services to connect and communicate with the IRS (MeF Framework) Use XML mapping services to create legacy file Store the PDFs from the XML stream to CM from BPEL Store the XML in database Retrieve and view XML data in eForms View Federal XML as part of CM System was developed in Prototypes: Web Services to connect and communicate with the IRS (MeF Framework) Use XML mapping services to create legacy file Store the PDFs from the XML stream to CM from BPEL Store the XML in database Retrieve and view XML data in eForms View Federal XML as part of CM

5. CT Elf

6. 6 CT Elf Service Design

8. Mapping ELF to Internal Format

9. Corp Tax e-file BPEL

10. STAR

11. NYS-45 Technical Solution

14. 14 E-MPIRE Business Problems Tax Systems written in the 1970s Every Tax Type was designed differently Opening channels was difficult Many user interfaces Multiple signons Systems were very paper dependent Changes to the systems were difficult to implement and test Finding resources to manage systems was becoming difficult Internal Needs… Map XML data to eMPIRE R2 Storage of XML data Retrieval/display of XML data Control flow of transaction Internal Needs… Map XML data to eMPIRE R2 Storage of XML data Retrieval/display of XML data Control flow of transaction

15. Integrated Tax Systems Vendors sell integrated tax systems as configurable solutions. The domains of Returns Processing, Taxpayer Identification, Accounting and Compliance are the building blocks in all tax processing. Many problems exist in the COTS solution: Integration with existing systems is difficult (we were leveraging our Compliance and Taxpayer Identification solutions) Integration of products to enhance our systems were difficult (Portal, EAS, etc.) The proprietary and/or tight integration of domains made it difficult to expose services without considerable programming New applications could not easily leverage the proprietary Common Services of the ITS The ITS because of its proprietary and platform dependent interfaces (even between domains) made it difficult to implement a domain on a new platform Vendors sell integrated tax systems as configurable solutions. The domains of Returns Processing, Taxpayer Identification, Accounting and Compliance are the building blocks in all tax processing. Many problems exist in the COTS solution: Integration with existing systems is difficult (we were leveraging our Compliance and Taxpayer Identification solutions) Integration of products to enhance our systems were difficult (Portal, EAS, etc.) The proprietary and/or tight integration of domains made it difficult to expose services without considerable programming New applications could not easily leverage the proprietary Common Services of the ITS The ITS because of its proprietary and platform dependent interfaces (even between domains) made it difficult to implement a domain on a new platform

16. Our Solution Not liking many of the liabilities of the COTS solution, we replaced the vendor and went with an SOA solution. We replaced many of the common services with other offerings. We used the Statewide directory offering to handle Security and Role Management. We purchased process server to handle Workflow and enhance Data Exchange. We used a series of product to get a best of breed solution for Discovery, Fraud Detection and eForms. We leveraged many of the vendor’s ideas for an ITS to implement our own navigation scheme and to develop tools ease delivery of the system. We established a service repository between domains to add flexibility and to open channels.Not liking many of the liabilities of the COTS solution, we replaced the vendor and went with an SOA solution. We replaced many of the common services with other offerings. We used the Statewide directory offering to handle Security and Role Management. We purchased process server to handle Workflow and enhance Data Exchange. We used a series of product to get a best of breed solution for Discovery, Fraud Detection and eForms. We leveraged many of the vendor’s ideas for an ITS to implement our own navigation scheme and to develop tools ease delivery of the system. We established a service repository between domains to add flexibility and to open channels.

17. Thousands of different tax forms ? Schema Diversity Typically not every field in a form is used ? Sparse Data Many forms change every year ? Schema Evolution ? A case for XML ! Tax Forms

18. Returns Processing Data Design Solution was meant to have one DB table for all returns and to facilitate a rules engine for users to enter the rules. Initial Design Multiple rows to store filing (one per Form) Table was sparsely populated Needed additional database table to translate the fields Performance issues were found with the design, especially considering the volumes of personal income tax. Needed expansion for next release to have multiple rows/form XML Design Follows the business object Keeps filing context Carries labels Easily implement tools for mapping Facilitated transactional processing Supports flexible, DB independent deployments Solution was meant to have one DB table for all returns and to facilitate a rules engine for users to enter the rules. Initial Design Multiple rows to store filing (one per Form) Table was sparsely populated Needed additional database table to translate the fields Performance issues were found with the design, especially considering the volumes of personal income tax. Needed expansion for next release to have multiple rows/form XML Design Follows the business object Keeps filing context Carries labels Easily implement tools for mapping Facilitated transactional processing Supports flexible, DB independent deployments

19. e-MPIRE R3 Phase I

20. e-MPIRE R3 Returns Processing The process is business based. Take a file, convert it to internal needs, do we know the taxpayer (customer), is this a duplicate or amended return, is the return compete, calculate the return, send the financial data to accounting. Stated in technology investments Show graphically all the circled technologies dropping into a single box called solution or processor The process is business based. Take a file, convert it to internal needs, do we know the taxpayer (customer), is this a duplicate or amended return, is the return compete, calculate the return, send the financial data to accounting. Stated in technology investments Show graphically all the circled technologies dropping into a single box called solution or processor

22. e-MPIRE R3 Phase II

23. New Web Projects Sales Tax Registration Sales Tax Re-Registration Sales Tax e-Filing (NYS-810) Bill, Return and Account Presentment and Payment Estimated Tax Payments Job Applicant Numerous e-Forms initiatives, some in collaboration with other NYS agencies Numerous e-Forms initiatives, some in collaboration with other NYS agencies

24. What’s next? Expand the use of eForms on the web Use Process Flows for Internet Navigation Incorporate more tools to speed delivery and improve product Convert other Subsystems (Domains) to XML Simplify conversion Map data structures closer to the business Leverage the rules engine Leverage the XML data in new ways (AJAX) Conversion is ongoing for Compliance, TI and other systems. eForms will be used for Registration, ReRegistration, the 810 and for some administrative systems. Looking at EAS and Portal Conversion is ongoing for Compliance, TI and other systems. eForms will be used for Registration, ReRegistration, the 810 and for some administrative systems. Looking at EAS and Portal

25. You’re all taxpayers What do you think?You’re all taxpayers What do you think?