Motor Fuel Tax E-File

Transcription

1 Motor Fuel Tax E-File Implementing an XML based solution to Motor Fuel Reporting Neeraj Kulkarni Director, Applications Development, Wisconsin Department of Revenue

2 Transition from EDI to XML 2011 Summer: Project Start October 2011: Testing starts with few selected filers November 2011: First wave of filers using the XML e-file capabilities June 2012: Completed transition for all filers from EDI to XML Working with filers Notifying filers 6 month in advance through an early notification letter Collaborating with filers and software providers to facilitate transition A reminder letter again before the transition 2

3 Motor Fuel Tax: e-filing Availability Motor Fuel Tax filers can transmit the following forms/reports using XML e-file: Motor Fuel Suppliers Report Carrier Report Terminal Operator Report Low-volume filers can file directly through our web portal DOR My Tax Account using forms; no need for EDI or XML 3

4 Why XML? Benefits Replacing EDI, an aging technology: Application support and syntax Consistency of TIGERS Standards for tax processing Accuracy of data for the filers and the Department Support from software vendors Processing efficiency Maintaining Standards First state to implement standards published by the Motor Fuel Uniformity Committee, FTA and TIGERS. We are currently using the MFETV1.1 schema 4

5 EDI XML Comparison EDI Transmission XML Transmission 5

6 Information Flow 6

7 Processing sftp Used for file transfer to and from Wisconsin DOR Processing integrated easily with DOR Integrated Tax Processing System WINPAS (which is uses FAST Enterprises GenTax ) Review by our Excise tax processing unit when there are 10 or fewer business rule errors Automatically rejected if more than 10 errors Acknowledgments delivered by sftp for pickup by filers Acknowledgements with rejects contain specific error messages and instructions to re-submit corrected returns 7

8 Optimizing Excise Tax Processing Tax processing now can focus on processing and audits rather than contacting filers and correcting errors An hour or less spent per week on data corrections Increased compliance and accuracy Ability to generate non-filer letters automatically 8

9 Technical Challenges Schema implementation Map schema elements for WINPAS processing File Naming conventions Testing Process Simple process combining manual and automated review of test scenarios Account Maintenance Potential review and adjustment by Excise unit Acknowledgments Providing acknowledgments during testing 9

10 Testing Process Communication with the filer User-ids for sftp communications sftp client set up instructions File naming conventions WI DOR Setup sftp Account Set up Folder structure creation Receive and parse test file Communicate any schema errors or issues via Run business rules against schema valid files Data review by excise team Approval for production filing 4-5 test submissions leading to approval for production filing. 10

11 Adoption 3 XML-based Filer Reports Carrier Supplier Terminal 16 Software developers 89 Current XML filers 13 use in-house programs they created 11

12 Benefits of Program XML is user friendly, not just for DOR, but for taxpayers as well The XML output is easy to read and software like XML Spy helps staff identify errors The error messages are far more readable, understandable Fewer rejected files. Most are resolved with a quick phone call or to the filer XML makes electronic filing viable for small and medium sized companies Participation from more filers. Many more companies (Currently 89 xml filers) are electronically filing using XML when compared to the EDI system Larger companies have their own software developers to create/receive the XML transmissions 12

13 Feedback " we have had a steady decrease in errors and Non-Filers. I have heard our field auditors mention, and as an office auditor we are finding less errors with their filing." "Once set up and used to filing, we rarely get calls on XML from the taxpayers. " 13

14 More Information Wisconsin DOR Motor Fuel Developers Page Travel Wisconsin 14

15 QUESTIONS Neeraj Kulkarni Chris Roberts THANK YOU 15