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Case Study

California Franchise Tax Board: California generates $2 billion for citizen services

  • 960,000 tax returns processed per day at peak time

  • 24,000 tax returns processed in an hour

  • Four million tax returns in one week

"2016 was our best tax season. Our improvements, including using Pega, helped us process more than 16 million tax returns in less than four months. The last week alone accounted for four million records without a single issue or service request."

Cathy Cleek CIO, California Franchise Tax Board

The Business Issue

With personal income tax supplying the majority of the state’s revenue for citizen services, California Franchise Tax Board (CA FTB) needed to close a tax gap between what citizens owed and what they voluntarily paid in their returns. Approximately 20% of inaccurate tax returns are a result of taxpayers failing to pay taxes, using incorrect tax forms and other exceptions.

The Solution

To improve the customer experience and reduce costs, the State of California (CA) Franchise Tax Board (FTB) initiated the Enterprise Data to Revenue (EDR) project. The Pega for Government platform was selected to be part of EDR, first to automate paper correspondence processing and then as the platform used to process all 16 million personal income tax returns for the 2016 tax season, handling as high as 960,000 returns per day.

The Results

With the new capabilities, tax returns are analyzed and validated automatically, reducing processing costs and improving employee productivity. Nearly eliminating inefficient paper-based processes, EDR will automate the processing of approximately one million digital and paper-based tax returns.

As a result of improved processes and automation, EDR has generated more than $2 billion in additional state revenue.

All text sourced directly from Governments Building for Change.

Related Resources

  • Learn how governments around the world are leading the way to build for change.

  • There’s no one-size fits all for government legacy modernization. That is why leaders across the globe are using Pega Government Platform.

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  • Industry: Government
  • Challenge: Customer Service