Revenue Modernization ProjectProfessionals Advisory Group

February 19, 2015

Introductions

Current Status of Corporation Tax and Trust Fund Taxes Implementation

Conversion:• A small number of Revenue ID’s incorrectly merged

• Manually separating• All account activity for these is being controlled

• Working through other data conversion issues as they are identifiedProcessing

• Returns are processing into the system with a high degree of accuracy • Payment processing and matching to the taxpayer, tax type and period

is improving• Refund processing is catching up• Sales tax license renewals caught up through January.

Correspondence• Most correspondence being printed and mailed regularly

Corporation Tax Improvements

• No Offsets While in Appeal

• Eliminate Billing Notices Preceding Assessment Notices

• Change Auto Calculation Process so that on a Tax Increase to Generate an Assessment for the Tax Increase (RCT-101)

No Offsets in Appeal

• Periods with appealed liabilities are locked to prevent overpayment credits from offsetting against the liability

• Offset lock is placed when the appeal is filed• Automated offset will still occur up and until an appeal has been

filed

• Offset lock will remain in place until all appeal rights are exhausted or expired

Eliminate Billing Notices

• Current Collections Process• Day 1: Billing Notice Issued

• No appeal period• Day 45: Assessment Issued

• Appeal period begins• Day 135: Appeal Period Ends

• 15 day pre-enforcement begins

• Collections Process After March 1, 2015• Day 1: Assessment is Issued

• Appeal period begins• Day 90: Appeal Period Ends

• 15 day pre-enforcement begins

Auto Calculation

• Auto Calculation Tax Increases on the RCT-101 will Trigger Correspondence Package to Explain Department’s Action

• Assessment notice will identify source of assessment from system evaluation

• Worksheet provides detail of the change in assessed tax• Statement of Account• Basis of assessment will contain generic language referring

taxpayer to the worksheet for explanation

• Additional assessments for underpayment of the auto calculation will not be issued

• Assessment will be subject to offsetting rules explained earlier

Outreach

• Please circulate the provided summary to your groups

• Tax Update article will be published at the end of March