2-D Bar Coding Indiana use of 2-D Bar Coding in 1999 filing season with market partners Results positive - utility proven in tax return processing Indiana received 130,794 returns in first year Faster/more accurate processing Plan to offer more rapid refunds for 2-D filers

Additional Agencies Intend to Employ in 2000 Alabama Delaware Illinois Rhode Island Possibly others

Making It Work Mutual interest in ensuring that 2-D technology is implemented √ consistently across states, and √ with greatest degree of "fit" with current business processing flows

Focus on Personal Income Tax 2-D applicable to many tax types Current focus on implementing personal income tax As needs justify other tax areas may be addressed

Continued Effort Anticipated Employ experience gained to date and during the upcoming filing season Additional discussions going forward on 2-D standards/practices Address any new issues surrounding use

Standards Development - Process Initially involve states committing to go forward with 2-D in 2000 Work with NACTP leadership, 1999 Indiana DOR partners, and committed states Understand issues and success drivers in a 2-D implementation Document standards/practices and reach agreement Create ongoing process/partnership to assist growth

FTA Role Convene discussions on 2-D technical standards and business practices as appropriate for tax return processing by agency association members Work with NACTP on education and promotion of their use Once developed, work to maintain standards with those states and partners desiring to employ such technology via regular communications

NACTP Role Solicit member views and provide feedback on proposals for 2-D standards, and document preferred standards and practices via the Web and otherwise to the market as a whole Work with FTA on education and promotion of their use Once developed, work to maintain standards with those association members desiring to employ such technology via regular communications

State Role Adopt 2-D standards as recommended by FTA and NACTP and actively endorse and accept uniform approaches to implementation in work with all 3rd parties, including process integration consultants

2-D Vendor Role Support tax industry providers and the state agencies (and their contractors) on symbology technology and standards matters and front-end and back-end process integration, and generally support the 2-D tax filing market supply chain

Process Integrator Role Assist in developing standards by providing experience, and encourage observance in work with state clients.

Standards – Key Areas Data Layout/Format Forms Design Testing/Approval processes Documentation Support Organizations

Standards - Progress Development timeframe for Tax Year 1999 filing season: √ July 15-16, 1999 - initial 2-D standards meeting √ Week of July 19th - 2-D Subgroup conference call √ Week of July 26th - release of Draft documentation of meeting √ August 9 - preliminary input on Draft due √ Week of August 9th - 2-D Subgroup conference call to discuss Draft recommendations √ August 16 - joint informational presentation at FTA Technology Conference by state and NACTP representatives (Nashville, TN)

Standards – Progress August 19 - joint informational presentation at NACTP Conference by FTA and Symbol representatives Week of August 30th - 2-D Subgroup conference call to revise/adjust Draft recommendations – decisions on form/format Week of September 6th or 13th – joint publication by FTA and NACTP of Tax Year 1999 recommendations final document - 2-D Standards Release Week of October 11 - possible NACTP meeting featuring 2-D session as checkpoint on progress

Conclusion – Continuing Cooperation Needed From state agencies From market providers: √ tax filing √ symbology √ process integration FTA & NACTP standards support will work – if supported by association members

Contact 2-D Subgroup List in Handout Jonathan R. Lyon Federation of Tax Administrators Internet: jonathan.lyon@taxadmin.org Ste. 348, 444 N. Capitol St. NW Washington DC 20001 PH 202-624-5894 FAX 202-624-7888 Web Site: www.taxadmin.org