Case Study: Rhode Island Division of Taxation

Rhode Island's Division of Taxation ups its technology game

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Rhode Island’s taxes and fees are now successfully maintained and accessed on a single, agency-wide system following a ten-year journey of IT modernization. RSI is proud to have maintained a highly productive role as the Division’s implementation partner of choice for the past decade. 

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01

Rhode Island was running a $3 billion tax division on 15-year-old technology. The Division of Taxation was relying on a mainframe developed 40 years ago using COBOL.

02

The Division had over 58 tax types that were stored in many systems, including an offline Access database, as well as spreadsheets which were not integrated.

03

The Division’s primary objective of incremental modernization was essential for delivering an ROI and building the on-going business case for funding the full integrated tax system.

The Challenge

Background

The Division needed a technology partner that could partner over their journey towards modernization. The project was implemented in three phases in order to minimize disruption to taxpayers. Through three competitive bids, the Division, in three separate procurements, continued to trust RSI as its technology partner.

Needs:

  • Minimize implementation risk. 
    • Bring full processing of IFTA in-house
    • Begin full retirement of the mainframe system
    • Demonstrate ability to configure new tax types, beginning to end, in a short time frame without impacting the larger ITS project
    • Resolve safeguard issues resulting from security limitations in the legacy system
    • Deliver each phase on time and on budget
  • Increase automation.
    • Set a foundation for operating efficiencies in the future
    • Standup front-end imaging and data capture system
    • Create higher configurability of refund fraud rules
    • Increase automation of returns processing edits
    • Establish modern agency operational procedures
  • Improve operational efficiencies. 
    • Standardize processes and procedures
    • Minimize costs associated with training
    • Establish organization change and training programs
    • Apply business process improvements from phase to phase
    • Consolidate Individual Collections
    • Ensure entire agency is using vendor supported software for all primary responsibilities
    • Establish standardized approach to audit workpapers

The Solution

A Strategic Vision for Incremental Modernization 

Having developed a long-term vision for implementing their integrated tax system, the Division then proceeded through incremental modernization in partnership with RSI. 

As technology partners, Rhode Island Division of Taxation and RSI strategically designed a phased implementation in order to establish the business case for an integrated tax system.

The first procurement included Revenue Premier’s Portfolio Warehouse and Audit Manager modules to support tax discovery and collections. Second, RSI was selected to implement its modernized e-File (MeF) solution. The third procurement included implementation of the remaining Revenue Premier functionality, including the Taxpayer Portal, which resulted in a fully integrated tax solution.

Over ten years, Rhode Island Division of Taxation continued to select RSI as its technology partner as the Division progressed on their journey toward a fully integrated tax system.

The Results

The early phase success, including a 6:1 ROI, enabled the Division of Taxation to generate sufficient incremental revenue to build a business case for phase two; a complete ITS. 

The Division also experienced a number of intangible but equally significant benefits since the project’s inception:

  • The Division established a track record for success, having multiple successful projects under the Division’s belt before embarking on the full ITS implementation.
  • The Division gained invaluable experience and trust working alongside RSI.
  • The Division staff increased their familiarity and experience with Revenue Premier’s capabilities and modern technology.
  • The Division had now managed multiple IT projects successfully while also developing confidence and comfort.
  • Robust knowledge transfer from RSI to the Division staff took place, providing foundational training that the Division would carry forward.

Project KPIs:

  • Increased revenue – 600% increase during Phase One
  • Increased number of tax types implemented – 57 tax types, including IFTA, implemented
  • On-budget, on-time – 100% on-time and on-budget for every stage of the project
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“Taxation is proud of the partnership established with RSI during the IT modernization. The Rhode Island Division of Taxation provides a model for other tax agencies to follow in their quest to improve operations and technology.”

Neena Savage

Rhode Island Tax Administrator, Rhode Island Division of Taxation

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