kulkarni: motor fuel tax e-file system · system – winpas (which is uses fast enterprises...

Motor Fuel Tax E-File Implementing an XML based solution to Motor Fuel Reporting

Neeraj Kulkarni Director, Applications Development, Wisconsin

Department of Revenue

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 Wisconsin Department of Revenue

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


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


EDI – XML Comparison

EDI Transmission XML Transmission

Wisconsin Department of Revenue 5

Information Flow


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


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


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


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 email

− 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.


Adoption

• 3 XML-based Filer Reports

– Carrier

– Supplier

– Terminal

• 16 Software developers

• 89 Current XML filers

– 13 use in-house programs they created


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 email 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


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. "


More Information

Wisconsin DOR Motor Fuel Developers Page http://www.revenue.wi.gov/eserv/motorfuel/index.html

Travel Wisconsin http://www.travelwisconsin.com/


http://www.revenue.wi.gov/eserv/motorfuel/index.html

http://www.travelwisconsin.com/experience-fun/wisconsin-tourism-commercials

http://www.travelwisconsin.com/

THANK YOU

Neeraj Kulkarni [email protected]


QUESTIONS Chris Roberts [email protected]

kulkarni: motor fuel tax e-file system · system – winpas (which is uses fast enterprises...

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