Leveraging GenAI to Enhance Services for Taxpayers

CDTFA announces a Request for Innovative Ideas to use GenAI to enhance customer service for businesses and help businesses file their taxes

Sacramento — In a second round of solicitations seeking innovative ways to use Generative Artificial Intelligence (GenAI), and per the Governor's Executive Order California released a Request for Innovative Ideas (RFI2) to develop new ways to help Californians with their business taxes.

The California Department of Tax and Fee Administration (CDTFA) administers more than 40 tax and fee programs, and they field more than 800,000 inquiries a year from taxpayers. To improve accuracy and reduce the time it takes to research responses, CDTFA is seeking a solution that will use GenAI to swiftly search expansive reference materials and provide possible responses to taxpayers who reach out via telephone and live chat. CDTFA PROBLEM STATEMENT.

"With the proper guardrails and engagement in place, the state can leverage opportunities to smartly and safely use GenAI to enhance the basic functions of our government", said Amy Tong, Secretary of the California Government Operations Agency.

"We know taxes are complicated, and our team works day in and day out to help customers navigate those complexities", said CDTFA Director Nick Maduros. "Our goal is to use GenAI to make it easier for taxpayers to pay their taxes on time so we can more efficiently fund the essential services that benefit all Californians."

CDTFA's solicitation follows the California Department of Transportation's (Caltrans) release of two RFI2s last week for pilots to optimize traffic flow and enhance traffic safety, particularly for vulnerable roadway users.

"We're excited that GenAI is going to give us a jump start so we have what we need more quickly to be ready to help the taxpayer", said Desiree Ortega, a Tax Technician in CDTFA's Customer Service Center." When someone really compliments you on how you've helped them, when they're genuinely appreciative, it puts a pep in your step."

Later this month California Health and Human Services is expected to release two RFI2s, seeking innovative GenAI solutions to ensure that Californians with limited English proficiency have timely access to information about public benefits and can navigate public programs with ease and without confusion and to leverage tools to expeditiously document the facts or findings seen by a surveyor during health care facility inspections.

A Bidders Conference for the CDTFA solicitation will take place on Tuesday, January 23 as part of the solicitation process. The conference will allow interested companies to ask questions and learn more about the CDTFA problem statement.

The California Department of Tax and Fee Administration (CDTFA) administers California's sales and use, fuel, tobacco, alcohol, cannabis taxes, and other taxes and fees that fund specific state programs. CDTFA-administered programs accounted for more than $96.2 billion last fiscal year, supporting essential local services such as transportation, public safety and health, libraries, schools, social services, and natural resource management programs through the distribution of tax dollars going directly to local communities.