Executive Summary
In 2007, the Franchise Tax Board (FTB) developed a long term Tax Systems Modernization strategy consisting of three largescale projects spanning 30 years. The plan focuses on modernizing aging IT systems, implementing new business opportunities, and improving taxpayer services, compliance, and operational excellence. Each project was designed to take roughly 10 years from planning through implementation, with each phase building upon the previous. Collectively, these efforts are known as the Enterprise Data to Revenue (EDR) projects.
Phase one, the initial EDR Project (EDR1), established our foundational enterprise platform and modernized both return processing and correspondence workflows. Phase two of the EDR Projects (EDR2), represents one of the most significant modernization efforts in the department’s history. It replaced the aging and siloed Audit/Legal, Collections, and Filing Enforcement systems with a unified, modern Enterprise Tax System (ETS) designed to strengthen operational continuity, enhance taxpayer services, and safeguard more than $4 billion in annual revenue.
Project implementation began July 2021 with a series of early initiatives. In 2023, the project introduced the first compliance workload to the Enterprise platform and continued implementation through the final release in January 2026. Each compliance workload was transitioned in a manner and pace that allowed FTB to take small, measured steps and scale up, ensuring stability and reducing the risk of negative impacts on FTB operations and taxpayers.
In addition to consolidating FTB’s compliance systems, the EDR2 Project delivered a suite of modern capabilities that aim to strengthen both operational performance and taxpayer experience. This included new online service tools that enhance customer interaction and support compliance, advanced modeling capabilities aimed to improve case selection, and expanded data visualizations that elevate reporting, inventory management, and trend analysis across the enterprise.
The EDR2 implementation was a multi-year, enterprise-wide modernization effort that paired major technology upgrades with extensive business implementation efforts. Together, these efforts ensured the successful deployment of modernized systems and prepared the enterprise for sustained adoption and long-term operational benefit. The completion of the EDR2 Project marks a major milestone in California’s long-term Tax Systems Modernization strategy.
