State terminates contract with contractor over tax software system

North Carolina has already paid CGI $63.8 million for the tax-collection system

Public relations woes for contractor CGI continue to mount, as North Carolina has decided to terminate its contract with the systems integrator for a new tax-collection software system.

While the two sides say the termination was mutually agreed upon, in a press release CGI pointed out that North Carolina was able to collect an additional US$320 million in taxes from using the parts of the system, which is called TIMS (Tax Information Management System) that were already completed.

"TIMS is the result of a long-term information technology initiative that spanned multiple administrations," CGI said. "The project has returned more than three times its cost to the State in just over five years."

North Carolina has paid CGI roughly $63.8 million so far, and under the termination agreement will also give it another $5 million, said state Department of Revenue spokesman Trevor Johnson.

TIMS in its current form handles 28 of North Carolina's 34 tax types. The next project phase was supposed to add the remaining ones, which include major types such as individual income, Johnson said.

Originally, the next phase was supposed to be finished in October, but that deadline was missed and no new one has been set, according to Johnson. The state plans to use a legacy system to handle this tax filing season, he said.

The decision to cancel CGI's contract was a "tough" one, Johnson said. "Over the past year we've been looking at the project in detail, and the progress we were hoping for was not met."

Nothing has been finalized regarding the future direction of TIMS, he said.

CGI served as one of the main contractors for, the site where U.S. residents can shop for health insurance under the Obama administration's health care overhaul. The site was beset by performance woes upon its launch on Oct. 1, although it has since been stabilized.

Administration officials have come under heavy fire from lawmakers, who say they ignored warnings, including from CGI itself, that the site wasn't going to be ready for the Oct. 1 launch.

CGI's contract for won't be renewed after it ends in February.

A number of state-level health care exchanges developed by CGI have also experienced problems.

CGI's role in developing the health care sites and the subsequent fallout had nothing to do with North Carolina's decision to end the TIMS contract, according to Johnson.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags servicesit strategyCIO rolesoftwareCGIIT management

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Cool Tech

Xiro Drone Xplorer V -3 Axis Gimbal & 1080p Full HD 14MP Camera

Learn more >

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >

D-Link TAIPAN AC3200 Ultra Wi-Fi Modem Router (DSL-4320L)

Learn more >

D-Link PowerLine AV2 2000 Gigabit Network Kit

Learn more >

Crucial® BX200 SATA 2.5” 7mm (with 9.5mm adapter) Internal Solid State Drive

Learn more >

ASUS ROG Swift PG279Q – Reign beyond virtual world

Learn more >

Gadgets & Things

Lexar Professional 2000x SDHC™/SDXC™ UHS-II cards

Learn more >


Learn more >

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >

Family Friendly

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >

ASUS VivoPC VM62 - Incredibly Powerful, Unbelievably Small

Learn more >

Lexar Professional 2000x SDHC™/SDXC™ UHS-II cards

Learn more >

Stocking Stuffer

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >

Lexar Professional 2000x SDHC™/SDXC™ UHS-II cards

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Best Deals on Good Gear Guide

Latest News Articles


GGG Evaluation Team

Kathy Cassidy


First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni


For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell


The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi


The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott


My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.


Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?