The US Internal Revenue Service has awarded IT services provider Avineon a contract to develop a prototype electronic system for the filing and release of the notice of federal tax liens.
The project is two-fold as Avineon will assist in developing a logical system design for the full implementation of electronic lien (e-lien) software, as well as support proof of concept software development for a subset of the full system. The new electronic system will streamline processes, reducing cost and time while increasing efficiency.
The Internal Revenue Service (IRS) files more than one million lien documents annually with around 4,000 federal, state and local recording offices that typically require extensive paperwork with minimal standardization. Due to myriad local statutory requirements, the IRS is forced to adapt to various state and local requirements that are paper intensive, burdensome, time-consuming and expensive to manage.
While the IRS’s current automated lien system (ALS) generates the notice of federal tax liens (NFTL) electronically, the document recorded with the local recording official remains in paper format.
A fully electronic system that eliminates paper documents will reduce costs for both the IRS and state and local offices, stated George Crump, e-lien project manager from the IRS. Avineon has the experience and resources necessary to ensure we develop a system that meets our goals and streamlines operations.
Avineon will develop a logical system design compliant with IRS standards. The scope of the design includes the full functionality for an e-lien system capable of sending liens electronically, receiving back confirmation and interfacing with the IRS’s integrated financial system (IFS).
Design components for the e-lien software to be developed include the system accepting files from ALS and maintaining a database of liens. The system will also have an easy-to-use and self documented web-based user interface.
For the software proof of concept development, Avineon will develop the detailed physical design and the software that will build the e-lien database, user interface, data extraction logic, data transformation to XML, interfacing with one state and local recording office and provide reporting capability.
The contract represents Avineon’s first win under the company’s Treasury Information Processing Support Services-3 (TIPSS-3) contract to provide information systems support to the US Department of the Treasury and all of its bureaus.