1. GenTax® Upgrade to Version 9
Executive Sponsors
Demesia Padilla, CPA
Cabinet Secretary John Monforte Deputy Cabinet Secretary
Greg Saunders Chief Information Officer
April 18, 2012

2. Background GenTax® – tax system of record for New Mexico
Commercial-off-the-shelf (COTS) product provide by Fast Enterprises, LLC
First implemented in 2002 for Personal & Corporate Income Tax
Implemented on time and on budget
Currently 28 tax programs are processed in GenTax
Manages tax revenue stream fluctuating between $5.5 and $6.5 billion annually

3. Background Accounting basis for TRD financial revenue processing
Manages the revenue stream from taxpayers to beneficiaries
Processes all tax returns and payments
System for Tax Audit and Compliance initiatives
Repository for all historical tax information
Used to enforce tax code compliance and combat tax fraud

4. Key Points
Some modules in the current version are obsolete, no longer supported, and are cumbersome to use and maintain; TRD is unable to fulfill critical user requests and implement legislative mandates
Lost revenue opportunities – inability to take advantage of new additional revenues of $14.5 million due to lack of implementation of New Refunds module, Tax Payer Offset Program, Discovery product, Business Credit Manager and other modern core revenue generation functionality

5. Key Points
Fraud Prevention – current system is unable to identity & prevent millions in fraudulent activity each year
Catastrophic failure- if GenTax suffers a catastrophic failure, NM will be unable to collect and distribute $6 billion in revenues

6. Benefits from Upgrade
Significant annual reduction of fraudulent refunds as a result of upgraded Refunds module and data exchange functionality
Additional new revenues annually resulting from more efficient processing due to an upgraded Taxpayer Offset Program module
Significant increase in new revenues annually resulting from implementation of GenTax integrated data warehouse (Discovery). This module increases audit, collections, non-filer recoveries, real-time fraud prevention and return validation.
Alabama Audit & Compliance Division: Without Discovery in FY 2008, $10 million. With Discovery in 2010, $17.7 million
Illinois Audit & Compliance Collections: $44 million collected using leads generated by Discovery
California Employment Development Department (unemployment compensation): Collection increase in 2010 of $29 millioln in new revenue in FY 2010 using Discovery

7. Benefits from Upgrade
Annual savings in support & maintenance costs by incorporating the current data warehouse functionality into GenTax
Considerable annual saving to General Fund resulting from implementation of Business Credit Manager functionality. This functionality ensures that revenue due to the State is fairly collected and distributed.
Greater ability to satisfy user requests & legislative mandates
Greatly reduce the risk of catastrophic failure by upgrading to version 9 of GenTax

8. Scope Upgrade all modules of tax processing system
Implement integrated data warehouse, Discovery
Implement a Business Credit Manager module

9. Budget
In Laws of 2012, Chapter 19, Section 7, Item 4, TRD received $6,230,000
Funds must me used to upgrade GenTax to the current version of the software
Funds must be expended before 6/30/14

10. Timeline 2012-2014 Initiation Planning Implementation Closeout
4/18/12 – 5/1/12
5/1/12– 5/31/12
6/1/12– 6/30/14
6/30/14

11. Statewide Initiative & Compliance
Governor's Priorities
Balancing the Budget
Produce recurring improvements to state revenue
Increase in audit collections & non-filer recoveries
Ensure that revenues due to the State of NM are fairly collected & distributed

12. Statewide Initiative & Compliance
State Strategy
Information Technology must drive efficient delivery of high quality government services
Build upon &extend existing cost efficient solutions to the processing of Individual and Business Tax returns and processing
Reduce the cost of government operations
Produce recurring improvements to state revenue through the reduction of fraudulent returns
Create an increase in Federal funds received
Minimize the need for programmer/developer intervention in correcting data errors
Consolidate enterprise information technology services
Improved Refund module will allow for better management oversight, rescheduling of refund that have a change in status and better interest calculation

13. PCC Gates Initiation Phase - April 2012 Planning Phase - May 2012
Implementation Phase - June 2012 thru June 2014
Closeout Phase – June 2014

14. Summary The upgrade to GenTax Version 9 will:
Increase annual revenue generation
Improve Fraud detection and prevention
Enhance processing and tracking of refund requests
Increase annual saving through the prevention of over distribution from the General Fund
Reduce overall system risk over the long term
Ensure continued collection of $5.5 to $6.5 billion in annual revenues

15. Questions
Thank you