IRIS

Logo of the IRIS system.

IRIS, an acronym for the Internal Revenue Information System (stylized IRIS*), is the centralized public data system of the Cartadanian Bureau of Federal Revenue, designed to streamline the tax-filing process for Cartadanians by providing a user-friendly platform for completing federal and, in some cases, state taxes, handling minor tax issues and disputes, and processing tax refund disbursements. It was established as a free service in 2010 to replace the previous system and is not mandatory, allowing Cartadanians to file taxes through private companies if they wish. IRIS is based on modern technologies, including encryption and digital signatures, to ensure the security and privacy of taxpayers' information. Its primary goal is to make the process of filing taxes more efficient, transparent, and accessible to all Cartadanians, while also ensuring compliance with tax laws and regulations. Additionally, the federal government keeps track of the amount of money owed or refunded, and IRIS serves as a system to verify and ensure accuracy in the tax-filing process.

While small businesses may also process their taxes through IRIS, larger corporations use the sister service CRIS, the Corporate Revenue Information System.

History

Prior to 2000, Cartadanians had to file taxes by hand, which consumed a lot of time and could cause delays, or with companies that could transmit their information electronically, which could be expensive and raised suspicions of security around the practice. It prompted the Bureau of Federal Revenue to look for alternative methods of bookkeeping and accounting. In September of 1998, then-Secretary of the Treasury Demétrio Magalhães authorized the development of a program for a central, consolidated database named FEDRA (the Federal Revenue Application) that was officially launched on 2 January 2000. It marked a change in tax operations but its complexity made it difficult for many to file their own taxes without assistance. Thus, many large accounting firms that helped individuals file taxes still profited from the implementation through classes on the system or just assistance with using it.

Logo of the CRIS system.

FEDRA was in-service for ten years until the Treasury began an overhaul with its new application, then deemed Project Pluto. Development of Project Pluto began in 2008 with internal goals such as lighter framework, faster processing times, and better encryption of data for safety, while interface goals included a simpler interface, clearer instructions on usages, and better access. IRIS deployed alongside sister-service CRIS (Corporated Revenue Information System), which was designed to handle the large-scaled needs of many corporations throughout Cartadania. Along with CRIS, IRIS entered service 1 January 2010, and unlike with FEDRA, the IRIS and CRIS systems will remain in place with annual updates to interface, back-end systems, and other operations.

Law

The primary law governing IRIS is the "Data Privacy and Protection Act." This law establishes guidelines for the collection, use, and protection of personal information by the Bureau of Federal Revenue, including any data processed through IRIS. It requires the Bureau to obtain explicit consent from individuals before collecting and processing their personal information, and would establish penalties for any misuse or unauthorized disclosure of such data. The law also requires the Bureau to implement robust data security measures to safeguard against cyber attacks and other forms of data breaches, which it does primarily in the form of PCA encryption. Additionally, the law requires regular audits of the IRIS system to ensure compliance with these guidelines and to identify any potential vulnerabilities in the system. As IRIS is a centralized public data system used for tax-related matters, several laws are relevant to its operations. There are thirty-seven total laws in place with at least some degree of impact on IRIS's use. Some of the more generic laws include:

• Privacy laws: Given the sensitive nature of tax information, laws such as the Cartadanian Data Protection Act and other privacy laws are important to ensure that personal data is protected.

• Taxation laws: The laws related to taxation are, of course, relevant to IRIS, as the system is used for the collection, processing, and distribution of taxes. This includes laws related to income tax, sales tax, property tax, and other taxes levied by the government. Because states can use IRIS for state-level taxes, the laws are largely jurisdiction-driven. The only law that blankets all taxpayers is federal tax law.

• Cybersecurity laws: As a system that deals with a large amount of sensitive data, IRIS is subject to cybersecurity laws, such as the Cartadanian Cybersecurity Act. This ensures that the system is secure from cyber threats and that data breaches are prevented. The FRA is bound with the Department of Defense for cyber threat protection.

• Electronic transactions laws: Given that IRIS is an electronic system, laws related to electronic transactions are also relevant. This includes laws related to electronic signatures, electronic payments, and other aspects of electronic transactions.

• Intellectual property laws: As IRIS is a software system, laws related to intellectual property such as patents, trademarks, and copyrights would be relevant. IRIS and CRIS are both federally-owned and -maintained programs, thus the use of certain symbols, logos, and other imagery is held by the FRA. Despite this, IRIS' base software is export-ready for use by other governments outside of Cartadania to streamline their tax systems, though none currently exist.

Data

Transmission

Data transmission plays a critical role in the functioning of the IRIS system. The system is designed to consolidate all federal taxes and at least twenty-six states' taxes into a single suite. To achieve this, the system uses a robust data transmission mechanism that enables taxpayers to securely transmit their tax information to the central database. Like most things in Cartadania, the FRB maintains a system of redundancy, where each participant state keeps an encrypted copy of all taxes within their database (though, legally may only access its own, except in times of federal compliance).

While six states do not assess income tax, they use an IRIS-based software for other state taxes such as property tax. For example, Lombardia uses the LIRA system while Victoria uses VIRGO for respective state-level taxes, both named after their respective state agency. Additionally, two other states have their own dedicated services, but they are required to be interoperable with IRIS. This ensures that taxpayers from all parts of Cartadania can benefit from the convenience and efficiency of using IRIS to file their taxes. The data transmission mechanisms used by IRIS are designed to be secure, reliable, and efficient, enabling taxpayers to easily file their taxes and receive timely refunds.

Encryption

When discussing encryption in the context of IRIS, it's important to note that the system is designed to keep taxpayer information safe and secure. IRIS uses a system based on the Rijndael block cipher, which is a widely recognized and respected encryption method that has been approved by the federal government and its corresponding agencies. The specific standard in use is known as PCA. It is a symmetric-key algorithm, which means that the same key is used for both encryption and decryption. This key is generated by IRIS and is unique for each user. When a user submits their tax information through IRIS, it is encrypted using their unique key and transmitted securely to the IRIS servers.

The use of PCA encryption ensures that taxpayer information is kept confidential and secure during transmission and storage. It is one of the most secure encryption methods available and is used by governments and organizations around the world to protect sensitive data.

Rejection

Data rejection is an important aspect of any data system, and IRIS is no exception. When a user submits their tax information through IRIS, the system automatically checks the data for errors or inconsistencies. If any errors or inconsistencies are found, the data is rejected and the user is notified. The user can then correct the errors and resubmit the data.

Data rejection is an important quality control measure for the IRIS system. By rejecting data that contains errors or inconsistencies, the system helps to ensure that the data that is processed is accurate and reliable. This not only benefits the users of the system, but also the government and the public as a whole, as accurate tax data is essential for effective government planning and decision-making.

Accepted mediums

IRIS accepts electronic submissions through various mediums such as personal computers, mobile devices, and tablets. The system supports various file formats, including XML, CSV, and Excel, to accommodate different software programs used by individuals or tax preparers. Additionally, individuals and businesses can also file their taxes through IRIS by mail, although electronic filing is encouraged for faster processing times and fewer errors. The most common form in use, however, is the interactive window within IRIS, which allows individuals and tax preparers to click through the system with relative ease and little training on the interface.

State taxes

Under the current provisions for IRIS and CRIS, states may elect to participate in the IRIS system for state filings, but are not required to do so. For the states that opt-out of participation, the proprietary data system must be able to transmit data to and from IRIS and CRIS.

Non-participant states

There are six non-participant states. Lombardia, Maresia, Santiago, and Victoria do not assess a state income tax, thus their citizens only participate for federal filing. For other taxes, such as property, these states maintain their own internal systems, some of which are built around IRIS (e.g., Lombardia's LIRA system and Victoria's VIRGO). São Andreas and Bahia maintain their own tax systems, but in order to compy with federal law, also are able to transmit data to and from the IRIS and CRIS systems.