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Virginia Department of Taxation seeks roughly $131 million to replace aging IRMS tax-processing system
Summary
The Virginia Department of Taxation told a senate subcommittee it needs roughly $131 million over five years to replace its aging IRMS tax‑processing system, upgrade end‑of‑life peripheral systems and add staff to reduce appeals and refund backlogs.
Jim Alex, the new tax commissioner, and Kristen Collins, deputy tax commissioner for policy and legislative affairs, told the General Government Subcommittee they seek funding to replace the department’s Integrated Revenue Management System (IRMS) and other end‑of‑life systems.
"It is ancient technology," Alex said of IRMS, which he described as software implemented in the mid‑2000s with components written in an older language. He told the panel the system processes the Commonwealth’s returns and handles the roughly $30 billion in General Fund revenue and that an RFP last year produced vendor responses allowing the department to refine a five‑year funding estimate to roughly $131,000,000.
Commissioner Alex and Collins said modernization would move the system to a cloud architecture, permit faster implementation of statutory or rate changes, and improve audit selection, collections, non‑filer identification and refund‑fraud detection. Alex said the existing…
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