Response Form 13
Business Processes Bidder Form
RFP #: K1148
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Requirement Category:
Requirement Identifier:
Business Processes
B.LICN.01
Possible Points: 2784
Requirement Type:
Scored
Possible Points: 310
Requirements Statement:
Business Domain
Business Licensing
The Business Licensing Service (BLS) is a centralized business licensing clearing house, and maintains a service
supporting a “combined-licensing” process on behalf of numerous state and local government regulatory agency
partners. BLS provides detailed information necessary for businesses to come into compliance with licensing
requirements. Combined-licensing allows business licensing customers to apply for and renew numerous individual
state and local business licenses needed to conduct their specific business activities.
The cited authorities for the domain include:
RCW Chapter 19.02
WAC 459-20-100(2)(b)
WAC Chapter 458-02
RCW 82.32A.040
RCW 82.32A.050
Business Processes Within this Domain
Research Business Licensing and
Tax Account Information
This process describes the activities to provide public access to non-confidential account information (licensing and
tax) for existing businesses, licensing requirements, online or paper forms, documents, and referrals for additional
information.
Apply for Business Licenses
This process describes the activities to capture combined-license application information and payment, obtain
approval from the associated regulatory authorities (partners), and create a business license account. The collection
of required information and fees are distributed to the associated regulatory partner(s), and the combined-licensing
document is issued.
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Response Form 13: Business Processes Bidder Form
RFP #: K1148
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Renew Legal Entity and Business
Licenses
This process describes the activities to renew legal entity and business license endorsements on the account,
distribute the renewal information and fee payments to the associated regulatory authorities, and issue the renewed
licensing documentation.
Update Business Licensing Account
This process describes the activities to update a combined-licensing account, which includes opening a new account,
closing an account, and the filing of supplemental licensing applications when adding business activities to an existing
account. These updates may necessitate collecting additional information, filings, fees, and obtaining regulatory
agency re-approval or license document reissuance. The additional information or fees collected are distributed to
the respective regulatory partner(s).
Provide Customer Service
This process describes the activities to provide service to customers through the call center, self-service functions
(e.g. online information or filings, IVR), and centralized or remote public service counter locations. The service
provided includes accessing information, account maintenance, immediate processing of filings and payments, and
issuance of appropriate licensing documents.
Manage Licensing Partner Services
This process describes the activities to add, setup, configure and manage regulatory partner licensing endorsements,
including partner services and support functions.
Bidder's Response Detail:
<Insert Bidder’s Response Detail>
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Response Form 13: Business Processes Bidder Form
RFP #: K1148
3
Requirement Identifier:
B.REGN.01
Requirement Type:
Scored
Possible Points: 310
Requirements Statement:
Business Domain
Tax Account Registration
Business entities have accounts established with the Department of Revenue to report and remit taxes due. Most
businesses register for a tax registration account by filing an application through the combined-licensing process.
Non-business and certain business (i.e. Streamlined Sales Tax, temporary) entities remit taxes through an account
but are not required to file a business license application.
Business tax registration accounts use many of the same data elements as business licensing accounts, but differ in
that business licensing accounts must have each business location record set up separately, with each receiving a ‘tax
registration endorsement’ on the respective licensing document, a single tax account can encompass numerous
business locations. The registration information provided through the business licensing process is provided to the
tax account process, but must be evaluated in order to create the appropriate main and branch tax accounts a
business needs to report taxes properly.
The cited authorities for the domain include:
RCW 82.32.030
RCW 82.32.026
RCW 82.32.215
Business Processes Within this Domain
Create Tax Registration Account
This process describes the activities to create taxpayer and tax registration accounts. While most of the new
account registrations are initiated through the business license application process maintained by BLS, information is
also received from various other sources, for example, DOR Field Offices, DOR Tax Account Staff, Streamlined
Sales Tax Registrations (SST), and non-business entities.
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Response Form 13: Business Processes Bidder Form
RFP #: K1148
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Perform Account Maintenance
This process describes the activities to update, close, and reopen a tax registration account. The majority of
account maintenance requests are received through BLS, however requests may also come from various other
sources, for example, user’s online account profile (My Account), email, phone calls, paper documents, DOR staff,
successorship notices, EFT authorizations, and Streamlined Sales Tax Program (SST).
Bidder's Response Detail:
<Insert Bidder’s Response Detail>
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Response Form 13: Business Processes Bidder Form
RFP #: K1148
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Requirement Identifier:
B.ATCI.01
Requirement Type:
Scored
Possible Points: 309
Requirements Statement:
Business Domain
Tax Incentives (Credits,
Exemptions, and Reduced Tax
Rates)
Tax credits, exemptions, and reduced rates are available to taxpayers as an incentive for specific business activities
and/or industries and to encourage the creation of family wage jobs, especially in areas with high unemployment.
The incentives are established by the Legislature and may require an application process. Tax credits are monitored
for proper usage and incentive program caps. An annual report or survey may be necessary to comply with the
incentive requirements. These incentive programs may involve interaction with other state agencies (e.g.,
Employment Security Department, Department of Natural Resources). Examples of tax credit incentive programs
include Commute Trip Reduction (CTR), Mainstreet, New Employee Business and Operations (B&O) Tax, and Data
Center Exemption.
The cited authorities for the domain include:
RCW 71.24.025
RCW 82.04.4266
RCW 82.04.44525
RCW 82.04.4486
RCW 82.08.855
RCW 82.12.890
RCW 82.16.130
RCW 82.62
RCW 82.04.260
RCW 82.04.4277
RCW 82.04.4461
RCW 82.04.4489
RCW 82.08.890
RCW 82.12.986
RCW 82.32.534
RCW 82.70
RCW 82.04.290(3)
RCW 82.04.431
RCW 82.04.4463
RCW 82.04.449
RCW 82.08.900
RCW 82.16.0421
RCW 82.32.585
RCW 82.73
RCW 82.04.2909
RCW 82.04.4333
RCW 82.04.4481
RCW 82.04.4494
RCW 82.08.986
RCW 82.16.0497
RCW 82.32.800
RCW 82.04.294
RCW 82.04.4452
RCW 82.04.4485
RCW 82.08.820
RCW 82.12.855
RCW 82.16.120
RCW 82.34
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Response Form 13: Business Processes Bidder Form
RFP #: K1148
6
Business Processes Within this Domain
Apply for Tax Credit
This process describes the activities to apply (online or paper) for a tax credit. To receive many of the tax credits
or exemptions, an online or paper application must be completed; most have a legal requirement to have the
application filed electronically. Some tax credits have a set period of time when an application can be submitted and
when the credit can be used.
Review Application
This process describes the activities to review and evaluate a tax credit application for completeness, accuracy, and
eligibility; and to ensure program caps are not exceeded. Some of the tax credits have a cap defined by a specific
application period and the tax credits are prorated accordingly. Certificates or credits are issued when the
application has been approved.
Complete Tax Return/Utilize Credit
This process describes the activities to claim an incentive by filing a tax return, where credits are taken against tax
due, reduced rates are applied, and deductions are used for certain exemptions.
Monitor Credit Usage and Caps
This process describes the activities to monitor how the incentive is used and ensure credit caps are within their
allowances. Incentives used without an application process are reviewed for accuracy and eligibility. Some credit
programs have annual caps that are measured at the time of usage and the cap may apply to the individual account,
and\or program level.
Complete Reporting Requirements
This process describes the activities to complete and submit the required reports and documents to the
Department of Revenue that fulfill the statutory requirements for each incentive program. Data exchanges are
required between other agencies to verify the eligibility of some incentives. Surveys and reports are filed to fulfill
statutory requirements for reporting to the Legislature.
Manage Incentive Programs
This process describes the activities to create and update incentive programs using specified business rules.
Bidder's Response Detail:
<Insert Bidder’s Response Detail>
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Response Form 13: Business Processes Bidder Form
RFP #: K1148
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Requirement Identifier:
B.TCPA.01
Requirement Type:
Scored
Possible Points: 309
Requirements Statement:
Business Domain
Taxpayer Accounting
Taxpayer Accounting includes the processes to issue credits and refunds for overpayment of tax and the issuance of
bills for underpayment of tax, penalties, and interest. These activities include the review of bills for adjustment
purposes and refund or credit requests, and responses to taxpayer inquiries regarding the status of their accounts.
Also included, is the process to write-off uncollectable accounts, and manage trust fund accounts.
The cited authorities for the domain include:
RCW 82.32.300
RCW 82.32.090
RCW 82.32.340
WAC 458-20-229
RCW 82.01.060(1)
RCW 82.32.105
RCW 82.32.350
RCW 82.32.050
RCW 82.32.140
RCW 82.32.100
RCW 82.32.060
RCW 82.32.145
RCWs 82.32.210
RCW 82.32.080
RCW 82.32.200
WAC 458-20-228
Business Processes Within this Domain
Adjust Receivables
This process describes the activities to adjust or cancel various types of receivables, including the ability to adjust
interest, penalty, and tax amounts for different situations.
Perform Issuance and
Reconciliation
This process describes the activities to issue, electronically or by paper, a balance (credit or debit) when a
calculated tax liability is different from the payment amount, whether from a single or multiple periods.
Assess Penalty
This process describes the activities to calculate and assess multiple penalty types on the tax return and/or invoice
type. These penalties are based on business rules, for example, late return payment, issuance penalty, negligent
penalty, and various invoice penalties.
Calculate Interest
This process describes the activities to calculate interest daily on invoices for debit or credit balances (including
refunds). The interest calculation depends on the invoice type and reporting periods involved.
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Response Form 13: Business Processes Bidder Form
RFP #: K1148
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Post and Reconcile Cash Bonds &
Grant Permanent Extensions
This process describes the activities to post a cash bond to an account and deposit the funds into the Security
Deposit - Bond Fund by the Business and Financial Services Division (B&FS). This allows a revoked account to be
reinstated or a permanent extension of the return due date. Reconciliation occurs monthly between the bond fund
and the accounts where the bonds are posted.
Write-Off Uncollectable Accounts
This process describes the activities to identify potential uncollectable accounts, review and select the final
uncollectable accounts based on business rules, and approve the final accounts for write-off and removal from the
system(s).
Review and Reconcile Taxpayer
Accounts
This process describes the activities to review and reconcile an account by providing the taxpayer a detailed
description of the breakdown of the application of payments, interest, penalties, and tax on multiple invoices and tax
returns.
Create and Compute a Trust Fund
Accountability Assessment (TFAA)
This process describes the activities to compute and assess a trust fund accountability assessment for trust funds
(e.g. sales tax) against an individual corporate officer, multiple corporate officers, or other responsible parties.
Bidder's Response Detail:
<Insert Bidder’s Response Detail>
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Response Form 13: Business Processes Bidder Form
RFP #: K1148
9
Requirement Identifier:
B.RETP.01
Requirement Type:
Scored
Possible Points: 310
Requirements Statement:
Business Domain
Returns Processing
Returns Processing includes the processes to collect and validate filed tax return information and ensure the return
is associated with the correct taxpayer for the correct filing period. These activities include the processes to create
and update tax, incentive (credit, deduction, exemption, special lower tax rate), and fee programs; change interest
rates; create and update taxes and penalties; and implement changes mandated by the Legislature.
The cited authorities for the domain include:
RCW 82.32.050
RCW 82.08.037
RCW 82.32.300
RCW 82.01.100
RCW 82.12.020
RCW 82.32.730
RCW 82.02.210
RCW 82.12.035
RCW 82.01.060(1)
RCW 82.04.440
RCW 82.32.045
WAC 458-20-19301
RCW 82.04.4451
RCW 82.32.080
WAC 458-20-196
Business Processes Within this Domain
File Tax Return
This process describes the activities to collect, validate, compute, and post the filed tax return data. The process
includes the receipt of the file from the KOFAX system for the filing of the paper return and the archiving of an
image of the tax return. Electronically filed returns submitted online include combined excise tax, consumer use tax,
Jenkins (consumer cigarette tax), and amended tax returns. Streamlined Sales Tax returns are received
electronically through the Streamlined Sales Tax Portal. Both electronically filed returns and returns received
through the Streamlined Sales Tax Portal involve the archiving of an image of the tax return.
Review Tax Return
This process describes the activities to review and adjust filed tax return data and make adjustments that impact
specific dedicated funds.
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Response Form 13: Business Processes Bidder Form
RFP #: K1148
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Claim Tax Return Credit
This process describes the activities for a single filing to receive credits based on the business activity for the filing
period. Examples of these credits include: Multiple Activities Tax Credit (MATC), Bad Debt Tax Credit (Schedule
B), Sales Taxes Paid to Other States, and Small Business B&O Tax Credit (SBC).
Manage New Taxes, Legislative
Changes & Rates
This process describes the activities to create new taxes, credits, penalties and fees, assign dedicated funding to
specific taxes, and update tax, penalty and interest rates, and fees using specified business rules.
Bidder's Response Detail:
<Insert Bidder’s Response Detail>
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Response Form 13: Business Processes Bidder Form
RFP #: K1148
11
Requirement Identifier:
B.AUDT.01
Requirement Type:
Scored
Possible Points: 309
Requirements Statement:
Business Domain
Audit
The Audit Division seeks to promote voluntary compliance with applicable tax law through research, analysis and
investigation into taxpayer accounts. Using analytical tools and reports, accounts are selected and assigned for
examination and audit. The assignment can be done at the taxpayer’s location through a field audit or in a DOR
office through a desk examination. Upon review of reported information and taxpayer records, a report is written
that is possibly accompanied by an assessment for any adjustments required. The report and related assessment go
through various levels of review before being sent to the taxpayer. Audit activities include the tracking of incoming
refunds, assessment appeals, and performance reports.
Audit also covers other process functions such as voluntary disclosure agreement requests, public works contracts,
direct pay permits, and corporation closures requests. The tracking of statute of limitation waivers is performed to
avoid missing deadlines.
The cited authorities for the domain include:
RCW 82.32.070
RCW 82.32.060
RCW 82.32.160
RCW 82.32.140
IRS Publication 1075
RCW 82.32.090
RCW 39.08
RCW 82.32.087
RCW 82.32.090
RCW 82.32.260
RCW 82.32.291
RCW 82.32.170
WAC 458-20-229
DOR Admin Policy 5.6.4
RCW 60.28
RCW 82.32.100
RCW 82.60
WAC 458-20-228
RCW 82.32.050
RCW 82.32.135
RCW 82.32.110
NIST 800-53
Business Processes Within this Domain
Select Accounts to Audit
This process describes the activities to identify accounts to be audited based on industry coverage and the
experience and skills of the audit staff using analytical tools.
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RFP #: K1148
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Manage Audit Appeals and Refund
Requests
This process describes the activities to manage appeals and refund requests related to audit assessments to ensure
performance targets are met and deadlines are not missed.
Conduct Desk Examinations
This process describes the activities to conduct desk examinations for registered and unregistered taxpayers based
on research and requests from various areas, including fraud referrals, lemon law refund requests, voluntary
disclosure agreements, and field audit staff research.
Conduct Field Assignments
This process describes the activities to research taxpayer accounts through field work and consultation visits, to
create an audit report and file for possible tax assessment or tax credit issuance.
Issue Assessments
This process describes the activities to review completed audits and issue tax assessments to taxpayers. Waivers of
the statute of limitation are also managed and tracked to ensure the related assessment is complete and issued
timely.
Manage Clearance Certificates and
Direct Pay Permits
This process describes the activities to manage and issue certificates for public works contracts, and corporation
closures, as well as direct pay permits.
Track Performance
This process describes the activities to track performance measures to ensure agency goals and priorities are being
met.
Bidder's Response Detail:
<Insert Bidder’s Response Detail>
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Response Form 13: Business Processes Bidder Form
RFP #: K1148
13
Requirement Identifier:
B.COMP.01
Requirement Type:
Scored
Possible Points: 309
Requirements Statement:
Business Domain
Compliance
The Department of Revenue investigates and collects taxes from businesses and individuals who have not properly registered, or
reported, or paid taxes due. Investigation work, usually called “Tax Discovery,” focuses on locating unregistered entities or
individuals who owe use tax, while collections focuses on recovering known liabilities owed. Tax Discovery Agents often create
new methods to generate their own cases and rely heavily on technology to interface with data sources to build cases and
assessments, and to manage their leads and investigative records. Collection of delinquent liabilities begins with identification, then
scoring and prioritization for assignment to agents. Collection activities may progress from preliminary actions such as delinquency
notices and phone calls to tax liens, levies or seizures, and may eventually result in a revocation of the taxpayer’s certificate of
registration. Any investigations and collections may require field work or service of documents.
Liabilities for taxpayers who have filed for protection under Federal Bankruptcy code, require the Department to manage and
collect them within proscribed federal regulations. The Department also has statutory authority to compel appearance or provide
information upon proper service, obtain search warrants from the Superior County Courts, and revoke a taxpayer’s certificate of
registration – all of which must be properly documented and meet due process requirements.
Most investigation and collection activity occurs across the state in thirteen field offices, the headquarters office, and through the
use of a predictive dialer. Agents investigate and collect during fieldwork as well. Customer service activities and support permeate
the activities of all staff in their interactions with taxpayers and the general public during the performance of these duties.
The cited authorities for the domain include:
RCW 82.32.080
RCW 82.32.100
RCW 82.32.140
RCW 82.32.145
RCW 82.32.235
RCW 82.32.237
RCW 82.32.360
WAC 459-20-100(2)(b)
http://www.law.cornell.edu/uscode/text/11
RCW 82.32.110
RCW 82.32.210
RCW 82.32.240
RCW 82.32.135
RCW 82.32.117
RCW 82.32.212
RCW 82.32.265
RCW 82.32A.040
RCW 82.32.130
RCW 82.32.215
RCW 82.32.350
RCW 82.32A.050
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Response Form 13: Business Processes Bidder Form
RFP #: K1148
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Business Processes Within this Domain
Collect Delinquent Liabilities
This process describes the activities to identify and apply the most effective collection tools to gain taxpayer
compliance (e.g., notices, tax warrants, revocation).
Exercise Special Authorities
This process describes the activities to issue and manage summonses, search warrants, subpoenas, and revocations.
Manage Bankrupt Taxpayer
Accounts
This process describes the activities to identify and manage liabilities under federal bankruptcy protection.
Identify and Manage Liabilities of
Unregistered Entities
This process describes the activities to discover, investigate, and collect taxes owed by involuntary taxpayers.
Track Targeted Education
This process describes the activities to perform and track targeted educational campaigns within a particular business
or industry type, and monitor responses or results such as additional revenues collected.
Bidder's Response Detail:
<Insert Bidder’s Response Detail>
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Response Form 13: Business Processes Bidder Form
RFP #: K1148
15
Requirement Identifier:
B.PPCM.01
Requirement Type:
Scored
Possible Points: 309
Requirements Statement:
Business Domain
Payment Processing and Cash
Management
The Department of Revenue accepts both paper (checks and cash) and electronic payments from tax and licensing
customers. The Department’s field offices, the Cash Management office, and financial institutions’ lockbox service
receives check payments daily. The field offices receive cash payments, provide receipts to customers, and apply
payments to customer accounts. Cash Management staff process payments for deposit and forward the documents
received with payments to the Taxpayer Account Administration (TAA) division for scanning. The Department
accepts the following electronic methods of payment: ACH Credit/Fed-Wire, ACH Debit, Credit Card, E-Check,
and Interagency Payments (IAP).
Cash Management is responsible for verifying and balancing all modes of payment both at the end of every business
day and monthly. Cash Management is also responsible for depositing tax and licensing payments into the proper
funding accounts through the State Treasurer’s Office, and maintaining an accurate audit trail record.
The cited authorities for the domain include:
RCW 43.01.050
SAAM 85.20
SAAM 85.36.20
RCW 82.12.045
SAAM 85.20.10
SAAM 40.20
RCW 82.32.080
SAAM 85.20.20
RCW 82.32.085
SAAM 85.22
RCW 82.32.210
SAAM 85.38.15
Business Processes Within this Domain
Accept Tax and Licensing Payments
This process describes the activities to accept tax and licensing payments and apply them to customer accounts.
Payments received from all sources are reconciled daily with information from financial institutions and the State
Treasurer’s Office.
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Response Form 13: Business Processes Bidder Form
RFP #: K1148
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Manage Tax and Licensing
Payment Adjustments
This process describes the activities to account for and reconcile tax and licensing payment adjustments, including
returned paper and electronic payments, bank adjustments, electronic payment cancellations, and funding
corrections. Cash Management performs various reconciliations to verify the funds deposited by the Department
balance with payments applied to customer accounts.
Provide Payment Information
This process describes the activities to access tax and licensing payment information, analyze payment information,
and generate reports for DOR internal customers.
Bidder's Response Detail:
<Insert Bidder’s Response Detail>
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Response Form 13: Business Processes Bidder Form
RFP #: K1148
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Requirement Identifier:
B.REVA.01
Requirement Type:
Scored
Possible Points: 309
Requirements Statement:
Business Domain
Revenue Accounting
The Agency Financial Reporting System (AFRS) is the official accounting system used by all state agencies and higher
education institutions in the state of Washington. AFRS transactions generate the state’s financial statements
including the Comprehensive Annual Financial Report (CAFR), which the Office of Financial Management (OFM)
publishes each fiscal year. Tax revenue collected by the Department of Revenue is material to the state’s financial
statements and proper reporting is essential for forecasting and budgetary purposes as well as certification of the
state’s debt.
The Revenue Accounting Section of the Business & Financial Services (B&FS) Division ensures AFRS accurately
reflects Department of Revenue tax and licensing transactions and that the information in AFRS is in accordance
with statutes, Generally Accepted Accounting Principles (GAAP), Governmental Accounting Standards Board
(GASB), and OFM regulations and guidelines (State Administrative & Accounting Manual - SAAM).
The cited authorities for the domain include:
RCW 43.88.170
RCW 40.14.027
RCW 43.08.066
RCW 82.14.500
RCW 43.08.062
RCW 82.32.320
RCW 19.02.080
RCW 82.33.040
RCW 82.32.060
SAAM Chapter 90
Business Processes Within this Domain
Account for Tax and Licensing
Revenue Transactions
This process describes the activities to convert tax and licensing revenue into accounting records in the state’s
accounting system (AFRS) in accordance with full accrual governmental accounting standards. When a payment is
received in full, the revenue is recorded in the proper funding accounts and revenue source codes in AFRS. When a
partial payment or no payment is received for liabilities, receivables and accrued revenue are recorded in AFRS with
detailed subsidiary records.
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Response Form 13: Business Processes Bidder Form
RFP #: K1148
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Distribute Funds to Licensing
Partners
This process describes the activities to update the state accounting system (AFRS) and the State Treasurer’s Office
with revenue from licensing fees collected on behalf of local government and state agency partners.
Provide Financial Reports
This process describes the activities to access cash and accrued revenue collection information, analyze the source
transactions of financial records, and generate reports of revenue activities. The Department’s internal and external
customers use these financial reports to monitor, analyze, and forecast revenue collections.
Support Tax and Licensing Refunds
This process describes the activities to support issuing and cancelling tax and licensing refunds by recording refund
transactions in the state accounting system (AFRS) and updating the customer’s account in coordination with
multiple DOR business divisions.
Bidder's Response Detail:
<Insert Bidder’s Response Detail>
Transforming Revenue’s future through collaborative efforts, improved processes, and proven technology solutions
Response Form 13: Business Processes Bidder Form
RFP #: K1148
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