CERCA
Briefing
Terry Milholland
Internal Revenue Service
Chief Technology Officer
October 21, 2010
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An ever changing world requires a nimble
environment to meet the needs of the public
• New workforce expectations
• Increasing Electronic Filing
• Increasing inter-governmental data
sharing
• Tighter security demands
• Increasing need for automation
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Our Challenge is to be able to Reconcile Different
Perspectives… both Internal…
I can’t give you the data
until you tell me what
you want
How do I know that the data
on this report will match
Susan’s report?
Subject Matter
Experts
Developers
What is the original source of this data?
Business
Users
How are we going to
integrate this data with the
other data?
How can I tell which systems
will be impacted if I make
this data change?
I can’t tell you what I want
until I see the data
Architects
Data
Analysts
External
Stakeholders
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How can I ever
make sense of all
these different
forms and interact
with the IRS?
DBAs
…And External…
When will you
address those material
weaknesses around
your databases?
We recommend you
consolidate databases
Dept of Education
TIGTA
Can I get a copy of that data?
GAO
What is your ten year spend
plan around databases?
How can we leverage
the IRS database
architecture?
We have consolidated –
we now have twenty
databases
Capital Hill
IRS
American
Public
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What is the
difference between
a 1040, 1040a,
1040EZ and 1040c?
Treasury
…This Becomes Even More Difficult By Having to be
Master Linguists
TIGTA
podatku
GAO
Dept of Education
세금
tassa
belasting
Developers
steuer
Business
Users
Subject Matter
Experts
Capital Hill
тягло
imposto
IRS
impôt
impuesto
税
American Public
Architects
Treasury
tax
Data
Analysts
treth
External
Stakeholders
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DBAs
vergi
…A Data Centric Strategy Can Align
Communications
The Data User Community
External
Internal
Unified Data Management – Enterprise Data Model
Business Metadata
Metadata Bridge
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Technical Metadata
Real IRS Example
What do the following have in common?
Line 37.....................................................................1040
Line 21.....................................................................1040A
750……………………………………………………...Electronically Filed 1040
Adjusted Gross Income Compensation…………….Electronic Tax Administration Marketing
Adjusted Gross Income Range…………………….. Electronic Tax Administration Marketing
Adjusted Gross………………………………………..Earned Income Tax Credit
Adjusted Gross Income EXAM………………………Examinations Operation Audit Database
These all represent different names for Adjusted Gross
Income, where
• Each one exists in a different system
• With it’s own format
• And it’s own business rules
• Plus gets updated annually from form changes
This is just one element but we have thousands of
data elements across the IRS!
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Data Format Example – Taxpayer Identification
Number
Today
System 1
(10 char)
System 2
(10 char)
Validity indicator
Packed Decimal
0 1 2 3 4 5 6 7 8 9
1
2
3
4
5
Taxpayer Identification
Number (TIN) Type/
Validity Indicator
6
7
8
9
0
EBCDIC
Source
Indicator
System 3
(11 char)
1
2
3
4
5
6
7
8
9
1
0
ASCII
Validity TIN
Indicator Type
System 4
(12 char)
Source
Indicator
1 2 3 4 5 6 7 8 9 0 0 1
TIN
Type
Target
TIN Type/
Validity Indicator
1
2
3
4
5
6
7
8
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9
Character
Validity
Indicator
Manage Taxpayer
Account Target
Database Format
. . . and we are moving toward realizing that
Data-centric Vision for the IRS.
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This Data Centric Strategy will help drive our Focus for a
3+ Year Program to become World Class
Wave 3 24-54 months
Wave 2 12-36 months
Wave 1 0-18 months
•
•
•
Deliver web services (e.g., taxpayer
transcripts, DoE functionality) using
Agile development
Reduce Operations& Maintenance
costs/ increase capacity through
virtualization and Operations Excellence
program
Effectively address risk management
across data and operations
•
•
•
•
•
•
Complete industry standard web
platform (irs.gov, RUP/EUP)
Capability Maturity Model Integration
(CMMI) / Information Technology
Infrastructure Library (ITIL)
Data Centric (e.g. CADE2 DB+)
Simplify governance and re-balance the
organization towards IT “doers” vs.
“managers”
Pilot and launch new end user
technologies to improve productivity
Improve end user support effectiveness
•
•
•
Complete CADE2 to improve the use
of data across the IRS
Radically rationalize Applications
Development and Maintenance
portfolio
Provide standardized services that
use shared, commoditized technology
(e.g., Tiered storage)
On-going foundational on-going
•
•
•
Build internal capability through recruiting and training in leadership and key technology areas to reduce reliance on vendors
Utilize cost and performance data throughout IT
Partner with the business to more effectively plan demand
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Delivery of CADE 2 is our first implementation of
the data centric model … all others are following…

Data Model

Relational Database

Production use of the Database

Move toward Daily Processing
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…While we continue to maintain and improve current BSM
systems…
MODERNIZED E-FILE
CURRENT CADE
Current CADE Release 5.2 successfully deployed on
January 18, 2010, delivering the tax year 2009 filing
season tax law changes affecting individual
taxpayers and other technical improvements.
MeF Release 6.1 deployed on January 7, 2010, and
delivered the Business Master File (BMF) returns
and the entire infrastructure for Release 6.1. The
Individual Master File (IMF) component of MeF was
delivered on February 17, 2010.
As of August 30, 2010, current CADE has posted
over 41.1 million returns and processed more than
35.7million refunds totaling in excess of $66 billion,
which were delivered to taxpayers on average 5 days
faster than the legacy systems.
• Over 8 million returns (IMF and BMF) have been
submitted and over 6.2 million have been
accepted.
AMS
Following a successful pilot completion on
September 4, 2009, AMS 2.1 deployed into
production nationwide to all AMS users on
September 15, 2009: enhancing views of tax
account information and system-wide access to
the Correspondence Imaging System images via a
secure protocol to protect network traffic.
• Approximately 6.8 million BMF returns have
been submitted
• Approximately 1.2 million IMF returns have been
submitted
• Modernized e-File has an average 8%
processing error rate, compared to 19% for
transcription-based paper processing.
• Seventeen states are participating in the MeF
Fed-State program. Over 1.16 million state
returns have been received through MeF.
Since the Release 2.1 deployment, over 1.1 million
correspondence image view requests have been
processed.
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As well as other essential projects …
Filing Season
Filing Information Return Electronically
(FIRE)
Affordable Care Act (ACA)
Foreign Account Tax Compliance Act
(FATCA)
Information Reporting and
Document Matching (IRDM)
Internet Strategy
 Portal (IRS.GOV, EUP, RUP, PUP
 e-Authentication
 Secure email
 Web Services (e.g. e-Transcripts)
Return Review Program (RRP)
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Questions?
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