Alabama’s Department of Revenue Eases Taxpayer Woes with New, Automated Process
CHALLENGE
The Alabama Department of Revenue was dealing with an outdated, manual tax return processing system that created large backlogs and workflow bottlenecks. Their system relied upon aging, inefficient hardware and software that resulted in massive paper backlogs, and lacked a workflow tracking and reporting component. The long processing and payment cycle times caused by these inefficiencies were leading to mounting dissatisfaction from customers.
The absence of formal quality control and security procedures designed to prevent tax fraud and ensure compliance with privacy regulations was also costing the department millions of dollars. Taxpayers sending in duplicate checks or incorrectly completed forms put a great deal of strain on the already slow and inefficient system.
On top of that, they were faced with the high costs associated with hiring, screening, and supervising seasonal workers each tax season. The organization was also facing insufficient warehouse storage space, increasing facility maintenance costs, and inconvenient, offsite warehouse locations.
SOLUTION
In order to transition to a more updated system while balancing expenses, the Alabama Department of Revenue outsourced all of its remittance processing operations to Exela. Exela replaced outdated and inefficient manual workflows with an automated end-to-end solution, which handled everything from opening and preparing returns, to image capture and storage and document destruction.
- Implemented LockBox/remittance services utilizing Check 21
- Online customer exceptions management
- Data processing/keying support for refunds, filing extensions, and other exceptions items and corresponding
- Mailroom services; certified mail receipt tracking system
- 2D Barcoding Technology to facilitate and expedite sorting
- Middleware Software Security and Testing
- Modernized image hosting and archival platform
Benefits
- Reduced average tax return turnaround from over 14 days to 24-48 hours
- Captured data with 100% accuracy and same day turn around
- Reduced state-employed data entry and mailroom staff by 250 full-time employees
- Experienced $2M to $4M annual savings through W-2 fraud detection and prevention
- Eliminated a 30,000 square foot warehouse