®
GenTax Upgrade to Version 9
Executive Sponsors
Demesia Padilla, CPA
Cabinet Secretary
John Monforte
Deputy Cabinet Secretary
April 18, 2012
Greg Saunders
Chief Information Officer
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

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
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
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
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, nonfiler recoveries, real-time fraud prevention and return
validation.
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
Scope

Upgrade all modules of tax processing system

Implement integrated data warehouse,
Discovery

Implement a Business Credit Manager
module
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
Timeline
2012-2014
Initiation
Planning
Implementation
Closeout
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
Statewide Initiative & Compliance
State Strategy

Information Technology must drive efficient delivery of high quality
government services


Reduce the cost of government operations




Build upon &extend existing cost efficient solutions to the processing of
Individual and Business Tax returns and processing
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
PCC Gates

Initiation Phase - April 2012

Planning Phase - May 2012

Implementation Phase - June 2012 thru June 2014

Closeout Phase – June 2014
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
Questions
Thank you