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Tom Nast

Integrated Nonfiler Compliance SystemIntegrated Nonfiler Compliance System

Project Managertom.nast@ftb.ca.gov

(916) 845-6703

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• Nonfiler Program Background• INC Business Objectives• Conceptual System Architecture• Infrastructure Summary• JAVA Technologies• Logical Architecture• Back-End Technologies• Front-End Components• Internet Demo• Training Demo

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NONFILER PROGRAM BACKGROUND

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4Over 220 million income records are received, cleansed and loaded into a data base each year

4Automated process matches income records against tax returns filed

4If no return filed, a nonfiler case is created

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GatherIncome

Data

CleanseIncome

Data

Notice of ProposedAssessment

Finalizes

Send Requestor Demand

Letter

NonfilerCase with

Tax > $200

CreateNonfiler

Case

Check forTax Return

Filed

Load database:Associate IncomeData to Taxpayer

Process 1:

Process 2:

Statement ofTax Due

(Collections)

Send Noticeof ProposedAssessment

Respond toCorre-

spondence

Respond toCorre-

spondence

Respond toCorre-

spondence

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1098 Mortgage Interest Payers

4%

Partners/Share-holders

1%

Wage Earners43%

Federal Return Filers10%

Seller of Real Property

3%

1099 Income Earners

13%Self-Employed

Individuals26%

TY 1998

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Revenue per Contact by Source• S Corporation K-1 Information $1212• Partnership K-1 Information $1101• Wage Information $664• 1099 Information $623• Federal Tax Return Information $316• 1098 Mortgage Information $271• Real Property Sales $305• Self-Employed Information $236

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• 37 Million Individuals

• 4 Million Businesses

• 10 Million Nonfilers

• 1 Million Cases to Pursue

• $300 Million Annually in Revenues

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INC BUSINESS OBJECTIVES

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ØØ Identify additional non-filers

Ø Reduce number of erroneous contacts

Ø Improved User services

Ø New E-Government service to taxpayers

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CONCEPTUAL SYSTEM

ARCHITECTURE

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Bus. Obj.Impromptu

IBM Intelligent

Miner

"Cleanup" (Sec. 4.2.1.2)

"Decision Support"(Sec. 4.2.1.7)

ETIExtract

"Reformat &extract datafrom arrivalformats"

Legacy Host

Vality Integrity

"Associate"(Sec.4.2.1.3)

Neuron DataElementsAdvisor

Formated data Unmatched Data

M a t c h e d D a t a

Case SelectionModule

"Select Cases"(Sec. 4.2.1.5)

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4321

InternetPaper(keyed)

Fax

ETIExtract

"Research" (Sec. 4.2.1.4)

Enterprise DataStore (EDS)Tables

LegacyData

"Import/Reformat"(Sec. 4.2.1.1)

ValityIntegrity

6"Manage" (Sec. 4.2.1.6)

IBM OLAP

Case Manager: System and Program Management

Conceptual System ArchitectureConceptual System Architecture

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INFRASTRUCTURE SUMMARY

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• Database -- DB2 UDB EEE• Server Hardware – RS 6000 SP (AIX)• Data Cleansing – Vality Integrity• System Management -- Tivoli• Business Rules Server – Blaze Advisor• Interface Messaging – MQ Series• Version Control -- PVCS• Requirements - Rational Rose/Req. Pro• System Testing – Rational Clearquest• Programming Language -- Java

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JAVA TECHNOLOGIES

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• IBM Visual Age for Java• GUI Components – Java Swing• Middleware – IBM Websphere (EJB)• Web Programming – IBM Visual Studio• JDBC for database access• XML / XSL• Java Server Pages (JSP)• Java Servlets• Java Naming and Dir. Interface (JNDI)• Java Transaction API (JMS)

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LOGICAL ARCHITECTURE

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Browser

JavaApplication

IVR

ExternalJava

Application

SessionBeans

IFaceLayer

BatchApplications

Print App

Rules(Blaze Advisor)

AppObjs

(SessionBeans)

EntityBeans

Par

ser

MQSeries

Socket

SPWebsphere AE

Application Node(s)

SPWebsphere AE

UDB Nodes

TCP/IP Socket(XML)

Servlets

NT WebserverWebsphere SE

HTTP

RMIJava

StoredProced

ures

EJB Home / Remote(RMI)

MQSeries

ExternalNon - JavaApplication

HTTP Server

XML

Print System

SPWebsphere AEBatch Node(s)

EJB Home / Remote(RMI)

Batch / FTP

MQ Series

XML

B.O.

RMI

JDBC

JDBC

JDBC?

Logical ArchitectureLogical Architecture

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BACK-END TECHNOLOGIES

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• Data Extraction – ETI Extract• Data Cleansing – Vality Integrity• Address Perfection -- Finalist• Gen Data Utility – File-Aid / File-Aid CS• Data Transfer -- FTP• Data Sorting -- Syncsort

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IRS FilesLicense

InformationK-1Returns

IRS ReturnsTax

Information

InformationReturn

FilingCompliance

Record

Split Filing Compliance Data

Edit Filing Compliance Data

Edited FilingCompliance Data

Vality MatchData

Data Extract, Cleanse and Load Process

Content Data

Receive Filing Compliance Records

Enhance Address Data

Standardize Data

ETI

Finalist

Vality

Associate Data

Standardize Data

Extract Entity Data

Format Address Data

Load Compliance Data

Identify Entity

EntityReference

UnidentifiedTaxpayer Data

IdentifiedTaxpayer

Data

SyncSort

RejectedFiling

ComplianceRecord

INC DATABASE

Non-INC

DB2

FinalistData

TI TaxpayerFile Extract

Edit Taxpayer Data

Enhance Address Data

Standardize Data

Format Address Data

Load Entity Data

Split Taxpayer Data

Edited TaxpayerData

Vality MatchData

ContentData

Identify Duplicates

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FRONT-END COMPONENTS

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• Notices• GUI Screens• Case Management Tool (CMT)• Internet• Web-Based Training

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Why do we believe you need to file a <1999> Californiaincome tax return?

You have an excellent history of filing your tax returns every year. However, we have norecord of a <1999> California personal income tax return for you.

We received information from <income source 1>that leads us to believe that you may have a California filing requirement for the <1999>tax year. We also received information that you earned other California income from, butnot limited to:

<income source 2><income source 3>

We checked our records, but we could not locate a <1999> California personal income taxreturn for you.We understand that you may have already filed your return, that you may not have had achance to file for <1999> yet, or that you may not have a filing requirement. We would liketo work with you to resolve this matter as soon as possible.Refer to the Filing Requirement Guidelines on Page 2 of this notice for <1999> income andfiling requirements. You must file even if you believe you are due a refund.

REQUEST FOR TAX RETURN00/00/0000

123456789ABCDCode Number: 01

This notice is alegal requestfor your <1999> taxreturn.

You must respondby<MM-DD-YYYY>

We have no record of your:<1999> California personalincome tax return

under the following socialsecurity number:<000-00-0000>.

Tip: You will avoid the demand penalty and cost recovery fee if you resolve this matter by <January 20th, 1999>. Formore information, see the back of this notice “What will happen if I don’t respond to this notice?”

FTB 4663 (REV 03-2000) PAGE 1

Notice Number: <01-0000000-MMDDYY>

Your reply is due:Thursday,January 20, 2000

20JANUARY 2000

If you believe you do not have a requirement to file, or are unsure if you have arequirement to file, quick resolution is available through our website at www.ftb.ca.gov/inc .You may also call our automated phone service at <(800) 545-5009> (available 24 hours aday) or complete Section B of the “Reply to FTB” (enclosed) and return it to us by<January 20th, 2000>.

Filed Already?

No FilingRequirement?

Haven’t Filed Yet?

What should you do to respond to this notice?The quickest way to resolve this matter is to visit our website at www.ftb.ca.gov/inc. Youcan also call our automated phone service at <(800) 545-5009>. You will be promptedto enter the social security number under which you filed your tax return, so please havea copy of your return ready. Or, complete Section A of the “Reply to FTB” (enclosed)and send it in with a copy of your return.

FTB 4600G C3 MEO (NEW 04-2000)

11111111 111 1 1 11111

Do you need forms?

Call us at (800) 338-0505to have forms mailed to you.

Download forms from ourwebsite at www.ftb.ca.gov.

To request forms in writing, write to:Tax Forms Request Unit,Franchise Tax Board,PO Box 307, Sacramento CA95741-0307.

If you have a requirement to file but have not filed yet, please complete your <1999>personal income tax return and send it to us. Since you did not file your return on time,we will assess a late filing penalty and applicable interest if your return shows a balancedue. If you do not file or respond to this notice by <January 20, 2000> we will estimateyour income and assess tax, a late filing penalty and interest.

STATE OF CALIFORNIAFRANCHISE TAX BOARD

MAIL STOP F200PO BOX 942840SACRAMENTO CA 94240-0040PHONE: (800) 545-5009FAX: (916) 855-5646

Your reply is due:Thursday,January 20, 2000

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JANUARY

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IBM Case Management Template

BusinessProcessMonitor

TaskDispatcher

TaskDefintion

Editor

UserTask

Window

UserProfileEditor

BusinessProcess

DefinitionEditor

Fra

me

wo

rk

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Manage INC ProgramManage Providers

Nonfiler Business Process

Today's date >=

expire_date

2

Any State

"WILD"

Task Dead

"TADE"

Urgent priority

"URPR"

High priority

"HIPR"

3

Normal priority

"NOPR"

Mark task as

inactive

Task inactive

1

Any State

"WILD"

Task Dead

"TADE"

Any condition

4

Any state

"WILD"

Previous state

"PREV"

Advance priority to

high

Advance priority to

urgent

Today's date >=

AwareDate +

high_days

Today's date >=

AwareDate +

high_days

Set aware date

"DASE"

Start

"STAR"

Today's date <

AwareDate +

high_days

Advance priority tonormal

Today's date >=

AwareDate +

high_days

+ urgent_days

Reassigned task

AwareDate =

original task's

AwareDate

Aware date =

today's date

NOT a Reassignedtask

Advance priority to

high

Advance priority to

urgent

Today's date >=

AwareDate +

high_days

+ urgent_days

Nonfiler

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B

C

D

E

F

F

Process Models

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INTERNET DEMO

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TRAINING DEMO