During the 2025 Session, the General Assembly enacted Item 260E of the 2025 Appropriation Act (Chapter 725, 2025 Acts of Assembly), which appropriated funds for costs associated with the replacement of the Virginia Department of Taxation's (Virginia Tax's) Integrated Revenue Management System (IRMS) and required that Virginia Tax report by September 1 of each year to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees on the status of the IRMS replacement, the funding expended in the prior fiscal year, project milestones achieved in the prior fiscal year, and any potential concerns that may impact the project's timeline and success.

In Fiscal Year (FY) 2025, the agency conducted the Request for Proposal (RFP) process for the replacement of IRMS with a Commercial Off The Shelf (COTS) integrated tax technology solution. The RFP was issued on July 19, 2024. Following the conclusion of the evaluation of the proposals received, Virginia Tax posted a Notice of lntent to Award on June 26, 2025 (Appendix A), which notified the public that F AST Enterprises, LLC was the selected vendor. The Notice of Award was posted on July 7, 2025, and a contract for the replacement of lRMS was signed on July 10, 2025. The selected vendor, FAST Enterprises, will be partnering with Virginia Tax to implement GenTax, the FAST Enterprises COTS solution that is currently in use in 34 other states. The implementation began August 11, 2025, with the first stage rollout anticipated in September 2026.