Tax Computation and Report Writing Solution for Pass-through Entities

This is a Source Sought Notice (SSN) for market research purposes only. This SSN is issued solely for information and planning purposes only and does not constitute a Request for Quotation (RFQ) or a commitment to issue a RFQ in the future. The Internal Revenue Service (IRS) does not obligate itself to contract for any supply or service as a result of this notice. Additionally, the agency is not currently seeking quotations and will not accept unsolicited quotations. The purpose of this SSN is to identify potential small businesses capable of meeting the IRS’S requirements.

1. BACKGROUND: The Department of Treasury, IRS in support of its examination units (i.e., Large Business and International (LB&I)) is seeking information on existing Commercial-Off-the-Shelf (COTS) tax software that can be customized to meet our needs for pass-through entities and to improve operational efficiency and security.

This tax software would automate tax calculations and generate IRS examination reports for income tax examinations of pass-through entities (including partnerships, S corporations and trusts). Although there are several technological and conceptual guardrails within which the solution would likely need to function, the IRS does not have a predefined idea of how a successful solution would need to function.

The current tax software used for pass-through entities will not be supported in the future and must be replaced. The IRS is seeking a stand-alone solution without middleware. However, in the future, we may seek to integrate (plug and play) with legacy case management systems as well as ECM. The solution may have to the capability to transition from legacy to ECM. We will require a Server-Based Solution (SBS) and server-based licenses for offline users.

The IRS does not have a predefined idea of how the solution should work as there are numerous specialized tax computation software products. IRS is looking for a solution/provider that addresses three overarching needs:

1) reduce the need to do manual calculations;

2) generate audit reports with tax calculation and supporting worksheets; and 3) maximize the ease of interface with IRS systems. The result of this market research will contribute to determining the method of procurement. The applicable North American Industry Classification Systems (NAICS) Code could potentially be for 541512-Computer System Design Services.

2. TECHNICAL CAPABILITIES: Any organization responding to this SSN shall own an existing COTS tax software that can be customized into a comprehensive solution and designed to facilitate the preparation of examination reports for all types of pass-through entities and their investors in accordance with the attached draft Performance Work Statement (PWS) and demonstrate the ability to obtain a Federal Risk and Authorization Management Program (FedRAMP) compliant tax software solution that automates tax calculations and generates IRS examination reports.

3. SUBMISSION INSTRUCTIONS:

a) The point of contact for this notice is:

Contract Specialist, Jessica Camunez. Vendors SSN responses shall be emailed to Jessica.r.camunez@irs.gov by May 22, 2024, 3PM Eastern Time. This agency is not seeking marketing information and will not review it. No phone calls or email questions related to this source sought notices will be accepted. Due date for responses is no later than 14 business days after Sources Sought Notice release date. Vendors shall reference “Tax Computation and Report Writing Solution for PTE” in the subject line of their response as well as in the subject line of any other e-mail.

b) The Government requests that all interested parties submit the information outlined below. Company name, Unique Entity ID (SAM) , point of contact, telephone number, and e-mail address. Business status (i.e., large/small business, disadvantaged, Hub Zone, woman-owned, etc.) Responses to SSN questions below. A statement indicating whether or not the responding contractor has the capability to meet the technical requirements described in the attached draft PWS.

Provide any specific labor categories, skill sets or certifications required to meet the technical requirements described in the attached draft PWS. What schedules or contract vehicles are available for you to compete for these services (including contract numbers) and suggested NAICs? Level of interest in this requirement: Highly likely to propose, may propose, or unlikely to propose. Thank you for your interest.