The Integrated Revenue Management System (IRMS) is the Virginia Department ofTaxation's ("Virginia Tax's") legacy core tax processing and accounting system that administers 36 tax types, processing approximately 12 million tax returns and $30 billion in payments annually. 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 IRMS.

In July 2024, Virginia Tax issued a Request for Proposal for the replacement of IRMS. A Notice oflntent to Award was posted in June 2025 and a contract for the replacement oflRMS was signed in July 2025. The selected vendor, FAST Enterprises, is the leading integrated tax solution vendor in the market, currently providing a Commercial Off The Shelf ("COTS") solution called GenTax that is used by 34 other states. Implementation of the project began in August 2025.

The project, referred to as Project Lighthouse, is scheduled to occur in four phases, with each rollout encompassing different tax types and occurring in September of each year. See Appendix A. On September 8, 2026, Virginia Tax successfully completed Rollout I of Project Lighthouse. The first rollout was completed on time and slightly under budget, with Rollout I tax types successfully processing in GenTax.

The project team is now focused on Rollout 2, which includes the implementation of a new set of tax types. Rollout 2 is progressing on schedule and on budget and is well-positioned to go live as scheduled on September 7, 2027.