Customer Account Data Engine 2 (CADE 2)
Investment ID: 015-000000051
Overview
Program Title
Customer Account Data Engine 2 (CADE 2)
Description
CADE 2 is IRS's modernized core tax processing system. It leverages modern-day database technology, programming languages and principles to determine refunds, penalty and interest, monitor compliance, and track historical data about individual taxpayer accounts. CADE 2 implements a data-centric solution which provides daily processing of taxpayer accounts.
Type of Program
Major IT Investments
Multi-Agency Category
Not Applicable
Associated Websites
http://www.irs.gov/, https://www.itdashboard.gov/
Investment Detail
BSM funding has enabled taxpayers to realize benefits. Taxpayers continue to receive timely refunds in accordance with our daily processing efforts. As of August 22, 2022 (Filing Season 2022), CADE2/IMF Daily Processing posted over 148 million tax returns and issued more than 109 million refunds, totaling over $343 billion. Daily processing of data allows taxpayers to address issues closer to the event that generated the notice. Thus, taxpayer issues are more efficiently resolved because account information is available to IRS Customer Service Representatives faster. Additional taxpayer benefits include reduced taxpayer burden to make compliance easier by enabling self-service tools and real-time access to account information; better access to data and analytical tools by leveraging a relational database, which provides more granular, historic, and timely data, and increases the ability of the IRS to analyze, research, and respond to fraud and identity theft. Work is aligned around data, not forms, to manage U.S. taxpayer dollars, track taxpayer relationships, and store and report more accurate account balances. Additionally, the modernized CADE 2 Relational DB has been instrumental in the issuance of Advanced Child Taxpayer Credit (ACTC) payments and faster Economic Impact Payments during COVID-19 (within 14 days vs. 75 days in 2008). The CADE 2 DB was also leveraged to identify taxpayers who met certain eligibility requirements, and to provide data to the IRS taxpayer-facing Get My Payment and Child Tax Credit Update Portal online applications.
Benefits to the IRS include: increased agility of response to changing taxpayer priorities and legislation; reduced IT costs and complexity; reduced workforce risk; enhanced analytics and reporting to greatly improve compliance and issue resolution; and reduced burden of manually intensive processes on IRS employees, by enabling automated calculations that currently are not possible; addressing the Unpaid Assessments FMW, retaining the clean audit opinion, complying with FISCAM.
Benefits to the IRS include: increased agility of response to changing taxpayer priorities and legislation; reduced IT costs and complexity; reduced workforce risk; enhanced analytics and reporting to greatly improve compliance and issue resolution; and reduced burden of manually intensive processes on IRS employees, by enabling automated calculations that currently are not possible; addressing the Unpaid Assessments FMW, retaining the clean audit opinion, complying with FISCAM.