Our journey to integrated tax administration started eight years ago. On that journey, Revenue became one of the first national, state, or local tax administration agencies worldwide to use an Enterprise Resource Planning system. Revenue is finishing the integration of the administration of all taxes into a single unified system (SUNTAX - System for Unified Taxation). Our journey will be complete in December 2007, when unemployment tax is moved into the SUNTAX system.
SUNTAX enables taxpayers to resolve issues related to many different taxes through a single contact with Revenue. The system improves service, reduces costs, and encourages more uniform compliance with tax law, resulting in an equitable administration of Florida’s tax system. Over the eight-year period of SUNTAX development, cumulative revenue increases due solely to the integration features of the system exceed $848 million. This integration has also allowed us to eliminate 595 full-time positions, or 22 percent of the General Tax Administration Program’s workforce, for a cumulative cost savings of over $96 million. The eight-year SUNTAX investment of $90 million has resulted in financial benefits of more than $844 million, which is a 9-to-1 return on investment.
Collecting all taxes due
Revenue has found that most taxpayers want to do the right thing when it comes to paying their taxes. An estimated 98 percent of all tax dollars are paid voluntarily. Revenue’s unified tax system strengthens both our voluntary and involuntary collection activities while continuing to make them less troublesome for the taxpayer. Previously, collectors had to pursue one tax at a time because of our system limitations. Now, staff can easily retrieve all taxpayer information from the unified system and make one taxpayer contact to discuss all liabilities.
Since Revenue has implemented its SUNTAX system, bill and delinquency collections have increased by 65 percent in spite of losing 22 percent of the General Tax Administration’s workforce.
Lowering penalties for one-time mistakes
"Tiered penalty" legislation gave Revenue the ability to grant an automatic waiver of certain penalties for taxpayers who maintained a good sales tax filing and payment record during the prior year. However, taxpayers who repeatedly file late or underpay their tax now pay a minimum penalty of $50 or 10 percent of the delinquent tax (whichever is higher). Under prior law, penalties were as high as 50 percent of the delinquent tax - regardless of the taxpayer’s filing record. Tiered penalty allows us to forgive those who usually file and pay timely and provides reasonable penalties for the chronic late filer.
Encouraging electronic filing
Taxpayers can now pay taxes and file tax returns electronically for sales, unemployment, communications services, fuel, and gross receipts taxes. Approximately 28 percent of returns processed are received electronically, while nearly 90 percent of all revenues collected by Revenue are sent electronically. Electronic filing has resulted in greater accuracy, more timely tax filings and payments, increased data integrity, and quicker access to these revenues.
Approximately 90 percent of the nearly 35.7 million wage items received by Revenue in 2006 for unemployment tax were filed electronically.
Improved service through 24-hour electronic access
Businesses can access the unified tax system 24 hours a day, seven days a week, through our web site. Two new electronic functions were introduced in 2006:
- Online verification of resale and exemption certificates. Businesses can upload a customer list for electronic verification by Revenue. This helps businesses collect the correct amount of tax at point of sale.
- Clerks of the Court can file and pay the taxes and fees they collect. Clerks can view their filing history, change addresses, and correct data with ease.
Increased productivity using wireless technology
New mobile equipment, such as personal computers with air cards and special access, allows Department staff to access the network anytime, anywhere. For example, while employees are working at a taxpayer’s site they can update the taxpayer’s account on the spot. This saves time and reduces the number of taxpayer contacts due to inaccurate or old information on the system.
Improved sharing of electronic bankruptcy information
he federal bankruptcy courts provide electronic files to notify Revenue of bankruptcies. These files are automatically matched against both our tax database and our child support enforcement database. This allows a seamless, automated, legally appropriate handling of bankrupt taxpayers who have tax liabilities and noncustodial parents who owe child support.
Improved phone service
Revenue’s customer call system for assistance with state tax issues produces the most efficient and effective handling of all customer calls. When a taxpayer calls Revenue’s toll-free number for assistance and provides his unique identifier, all relevant information for that taxpayer, including the complete contact history, is automatically located and displayed. The call is then routed to the most appropriate employee along with all the account information.
This allows the call center employee to review details of the taxpayer’s account, such as notes on previous conversations and correspondence, answer questions, and make adjustments to the account without switching back and forth between systems. If the employee needs to transfer the call, the account information also transfers.
The telephone system at the call center handles both incoming and outgoing calls. A new feature provides managers with greater staffing flexibility by designating employees for either incoming or outgoing calls based on current demand. Agents who normally handle outgoing calls can be switched to handle incoming calls at peak call times. This new system reduces wait time for taxpayers, enables employees to handle more calls, and better uses all available resources.
Using data for improvement
Our unified tax system enables staff to view, sort, and report a wealth of data about tax accounts from the production system or other data sources, providing targeted performance measures or collection areas.
The system contains "dashboard" technology - a visual display of key performance-related targets. This highlights problem areas where performance has fallen below a desired level and allows managers to further analyze and improve results.
More improvements on the horizon
Making it easier for taxpayers to contact us
We are making it easier and less time-consuming for taxpayers to contact us through the Internet. General Tax Administration is working to provide several new services:
- Secure messaging - Due to confidentiality of taxpayer information, Revenue faces challenges in responding to external e-mails. Through secure messaging, taxpayers will be able to communicate conveniently with Revenue while safeguarding their confidential information.
- Single sign-on - Currently, taxpayers have different user IDs and passwords for each tax they pay. In the near future, business owners will use a single sign-on for all taxes.
- Taxpayer self-service - Taxpayers will soon be able to update their own social data, such as address, phone number, e-mail address, and corporate officers. They will also be able to view their financial data for items such as payment status and filed return information.
Adding knowledge-based management systems
Adding a self-learning knowledge base in the near future will give us powerful insights into our customers by offering and tracking options such as online self-service, e-mail response, and voice self-service. (The system will allow taxpayers to submit new questions and receive answers immediately.) These capabilities will give customers and Department employees access to real-time information instantly, which will improve customer service.
Taking a picture
Electronic check presentment reduces the cost of physically handling and transporting paper checks to the bank. To increase payment processing efficiency, Revenue began using Check 21 or Image Cash Letter to transmit payment information electronically to the bank. This will extend the time we have to make deposits and will allow the state to earn additional interest on funds.
What we do
The General Tax Administration Program administers 33 taxes and fees, collecting more than $39 billion per year to support schools, health care, transportation, prisons, environmental protection, and other essential services.
Our goal is to make compliance with Florida’s tax laws as easy as possible for our business partners and citizens. By providing self-service options on our web site, clearly responding to questions made to our call and service centers, and simplifying our forms and communications, we will be more effective in collecting the tax dollars owed to fund our state’s needs.
We have focused on integrated tax administration and the use of every technological management tool available to enhance these efforts. The outcome? Florida’s Department of Revenue is a national and worldwide model for tax administration.
Innovation, teamwork, and leadership are all values that help General Tax Administration meet its goals every day on behalf of Florida’s citizens.
Visit our internet site for details about the General Tax Administration Program and services.