Case Study: California Franchise Tax Board achieves $3.7B in additional revenue with Pegasystems

State of California Franchise Tax Board generates $3.7B

The California Franchise Tax Board, one of the largest tax agencies in the U.S., needed to close its tax gap and quickly validate millions of returns against a complex, changing tax code while improving citizen services and reducing costs. To support its modernization efforts, it selected Pegasystems’ Pega Government Platform for the Enterprise Data to Revenue (EDR) project, starting with automated paper correspondence processing and expanding to tax return processing and self-service capabilities.

Pegasystems helped the California Franchise Tax Board automate and standardize key tax processes, validate returns, and provide secure taxpayer self-service. The results were significant: EDR generated more than $3.7 billion in additional state revenue between 2011 and 2016, added about $1 billion annually, processed up to 960,000 tax returns per day at peak, and reduced processing costs while improving productivity and taxpayer transparency.

California Franchise Tax Board

John Sulenta

Chief Information Officer