During the 2022 session, the General Assembly enacted Item 273D in the 2022 Appropriation Act directing the Virginia Department of Taxation (Virginia Tax) to conduct a comprehensive assessment of its Integrated Revenue Management System (IRMS) and develop guiding principles and potential options for addressing any identified shortcomings, including but not limited to, refactoring and replacement. Virginia Tax retained Gartner Inc. to complete the assessment, which covered, among other items: an overview of IRMS, a gap analysis of IRMS’s business capability, functionality requested by internal and external business partners, a review of security limitations and risks, and issues affecting support of the current infrastructure. The assessment concluded that Virginia Tax should begin defining clear functional and technical requirements for a modern Commercial Off The Shelf (COTS) solution and develop a comprehensive request for proposal (RFP) to procure the best-fit single vendor COTS solution and implementation partner.

During the 2024 Session, the General Assembly enacted Item 257D of the 2024 Appropriation Act continuing the efforts required by Item 273D of the 2022 and 2023 Appropriation Acts and directed the workgroup to review the plan for implementation of an IRMS modernization project as developed by Virginia Tax based upon recommendations of the 2022 assessment.

As required by Item 257D of the 2024 Appropriation Act, the workgroup was comprised of the following members:

• Secretary of Finance or his designee
• Staff from the House Appropriations Committee
• Staff from the Senate Finance and Appropriations Committee
• Director of the Department of Planning and Budget
• Chief Information Officer of the Virginia Information Technologies Agency

The workgroup also included the following members from Virginia Tax:

• Tax Commissioner
• Deputy Commissioner of Tax Policy and Legislative Affairs
• Deputy Commissioner of Tax Operations
• Chief Information Officer

The workgroup met on August 29, 2024, to review the agency’s plan for and progress towards implementation of an IRMS modernization project. In accordance with the recommendations of the 2022 assessment, Virginia Tax issued an RFP on July 19, 2024, for the replacement of IRMS. Evaluation of the proposals received are currently under review. The agency will seek funding to implement an IRMS replacement during the 2025 General Assembly Session.