IRS Nonfiler Identification Process modernization

Case Study: Enhancing IRS's Nonfiler Identification Process with Intellisoft Technologies

Duration: Feb 2009 - March 2015 

Background

The Internal Revenue Service (IRS) sought to improve its process for identifying and managing non-filers among business entities. To address this need, Intellisoft Technologies designed and developed the Business Master File Case Creation Nonfiler Identification Process (BMF CCNIP) application. This system was intended to establish a database using existing business intelligence, such as Information Returns and Payer Master File data, to identify, prioritize, and select non-filer inventory more effectively. The BMF CCNIP system was critical for improving the selection process of Return Delinquency (RD) modules and enhancing the overall Business Master File (BMF) Return Delinquency process.

Challenges

1. Data Integration: Integrating various data sources, including third-party data and IRS account data, to create a comprehensive and accurate non-filer identification system.

2. Prioritization and Selection: Developing algorithms to prioritize and select the most productive non-filer inventory for collection efforts.

3. Scalability: Ensuring the system could handle large volumes of data and transactions without performance issues.

4. Security: Implementing robust security measures to protect sensitive taxpayer information.

5. Reporting and Analysis: Providing detailed and customizable reporting capabilities for IRS analysts to track and manage non-filer cases effectively.

Intellisoft’s Role

Intellisoft Technologies was responsible for the end-to-end development and support of the BMF CCNIP system, focusing on several key areas to address the challenges and enhance the IRS’s non-filer identification process.

Development and Integration

• CCNIP Business Rules Development: Intellisoft developed sophisticated business rules to identify, prioritize, and select non-filer inventory. These rules leveraged third-party data sources, such as the Information Returns Master File (IRMF), Payer Master File (PMF), and Combined Annual Wage Reporting (CAWR), along with IRS account data.

• Websphere Application Server Infrastructure: Intellisoft developed and supported the Websphere Application Server infrastructure, ensuring it was optimized for performance and reliability.

• Single Sign-On Support with Siteminder: Implemented Single Sign-On (SSO) functionality using Siteminder to streamline user authentication and enhance security.

• Application Development Using J2EE/SOA Architecture: The application was developed using Java 2 Platform, Enterprise Edition (J2EE) and Service-Oriented Architecture (SOA) to ensure scalability, flexibility, and integration with other IRS systems.

Performance and Security

• Performance Analysis with ITCAM: Conducted performance analysis and optimization using IBM Tivoli Composite Application Management (ITCAM) tools to ensure the system could handle peak loads and operate efficiently.

• Negative TIN Check and Support with Webmethods Broker: Developed and integrated negative Taxpayer Identification Number (TIN) checks and provided support using Webmethods Broker to ensure data integrity and accuracy.

Reporting and Analysis

• Ad-Hoc Reporting with Business Objects: Implemented ad-hoc reporting capabilities using Business Objects, enabling IRS analysts to generate custom reports and perform detailed analysis of non-filer cases.

Operational Support

• Continuous Support and Maintenance: Provided ongoing infrastructure support, application maintenance, and system updates to ensure the BMF CCNIP system remained robust and reliable.

Results

• Improved Identification and Selection: The BMF CCNIP system enhanced the IRS’s ability to identify and prioritize non-filer inventory, resulting in more productive case selections and better allocation of resources.

• Enhanced Efficiency: Streamlined processes and robust application performance led to faster case creation and processing times, improving overall operational efficiency.

• Increased Taxpayer Responses: Enhanced identification and prioritization algorithms contributed to higher response rates from non-filers, increasing compliance and revenue collection.

• Scalability and Reliability: The system was able to handle large volumes of data and transactions efficiently, thanks to the robust infrastructure and performance optimization efforts.

• Robust Security: Implemented security measures ensured the protection of sensitive taxpayer information, maintaining IRS data security standards.

Conclusion

Intellisoft Technologies played a crucial role in enhancing the IRS's Nonfiler Identification Process through the development and support of the BMF CCNIP system. By leveraging advanced technologies and integrating multiple data sources, Intellisoft significantly improved the IRS’s ability to identify, prioritize, and manage non-filer cases. This case study demonstrates how targeted technological solutions can enhance government processes, leading to increased efficiency, compliance, and revenue collection.

Key Takeaways

• Data Integration and Business Intelligence: Effective integration of various data sources and the use of business intelligence are critical for accurate identification and prioritization of non-filer inventory.

• Scalability and Performance: Ensuring that systems can handle large volumes of data and transactions without performance degradation is essential for operational efficiency.

• Security and Compliance: Robust security measures are necessary to protect sensitive information and ensure compliance with data protection standards.

• Reporting and Analysis: Providing customizable reporting capabilities enables detailed analysis and better decision-making.

Through its comprehensive approach, Intellisoft Technologies not only addressed the immediate challenges faced by the IRS but also provided a scalable and secure solution for the long-term management of non-filer cases.