System for performing tax computations

• US 6,064,983 A
• Filed: 03/21/1997
• Issued: 05/16/2000
• Est. Priority Date: 03/21/1997
• Status: Expired due to Term

• Current Assignee: Koehler Consulting Incorporated
• Original Assignee: Koehler Consulting Incorporated
• Inventors: Koehler, Scott H.
• Primary Examiner(s): Voeltz, Emanuel Todd
• Assistant Examiner(s): KALINOWSKI, ALEXANDER G
• Application Number:
  US08/822,410
• Time in Patent Office: 1,152 Days
• Field of Search: 705/31, 705/4, 395/680, 395/682, 395/683
• US Class Current: 705/31
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

Abstract

A computer implemented application architecture and software component for providing tax computations for the administration of insurance and annuity products in a reusable software component. A Tax Server is implemented using object-oriented programming techniques and is controlled by a computer processor. The Tax Server has tax regulation classes and product classes that are inter-coupled according to design models so as to model the tax interpretation for various insurance and annuity products.

Claims

1. A computer system for analyzing taxable aspects of a financial contract, comprising:

a tax server having tax processing logic to provide generic tax computations;

a converter to convert and uniformly present tax related financial contract data;

a database to store tax related financial contract data managed by the converter;

a pre-defined message, which transmits the tax related financial contract data from the converter to the tax server; and

a client application to uniformly invoke tax processing logic on the tax server.

2. The computer of claim 1 wherein the tax related financial contract data is independent of a source of tax calculations.

3. The computer of claim 1 wherein the tax server applies the tax processing logic based on a comparison of before and after states of the financial contract.

4. The computer of claim 3 wherein the contract states are modeled by state objects representing the financial contract and an associated component, and wherein each after image state object is related to a corresponding before image state object.

5. A system for applying tax legislation to financial contracts, comprising:

a financial subsystem having stored therein financial data including tax related financial contract data for a plurality of financial contracts of a financial contract type, the financial subsystem having a protocol for communicating the stored financial contract data external to the financial subsystem;

a converter coupled to the financial subsystem for converting the protocol of the financial subsystem into a common request message structure; and

a tax engine coupled to the converter and having stored therein tax processing logic for analyzing tax related financial contract data for a plurality of financial contract types, the tax engine invoking the tax processing logic in response to the financial contract data in the common request message structure.

6. The system of claim 5 wherein the tax engine is separate from the financial subsystem.

7. The system of claim 5 wherein the financial contract type is an insurance contract.

8. The system of claim 5 wherein the financial contract type is an annuity contract.

9. The system of claim 5 wherein the tax engine includes a message-based architecture.

10. The system of claim 5 wherein the tax engine transforms flat, specific information to generic information inside objects.

11. The system of claim 5 wherein the tax engine includes a plurality of sub-components, wherein a first sub-component models rules associated with generic tax legislation and a second sub-component provides a product-related tax interpretation.

12. The system of claim 5 wherein the tax engine applies the tax processing logic without instructions from the financial subsystem.

13. The system of claim 5 wherein tax legislation is embodied in objects, which include a plurality of separate test objects to model a plurality of regulatory tax sections, and whereby the test objects remain resident during processing and retain applicable results for further use during a transaction.

14. The system of claim 5 wherein the tax engine analyzes tax related financial contract data on a per transaction basis.

15. The system of claim 5 wherein the converter includes a plurality of converter modules, each converter module converting the protocol of a respective financial contract type into the common message structure.

16. The system of claim 5 further comprising:

a database having tax related financial contract data stored therein the tax related financial contract data being managed by the converter; and

a client application to invoke generic tax computations from tax processing logic in the tax engine.

17. The system of claim 16 wherein the tax related financial contract data is independent of a source of the tax computations.

18. The system of claim 5 wherein the tax engine applies tax processing logic based on a comparison of before and after states of the financial contract.

19. The system of claim 18 wherein the contract states are modeled by objects representing the financial contract and an associated component, and wherein each after image state object is related to a corresponding before image state object.

20. The system of claim 18 wherein the tax engine analyzes changes to tax-related insurance parameters.

21. The system of claim 18 wherein the financial subsystem is an accounting system.

22. The system of claim 18 wherein the tax engine analyzes tax compliance for financial applications.

23. The system of claim 22 wherein the financial subsystem includes a financial services commission module.

24. A computer-implemented method for applying tax legislation to financial contracts, the method comprising:

storing financial data including tax related financial contract data for a plurality of financial contracts of a financial contract type in a financial subsystem;

communicating the stored financial contract data external to the financial subsystem in a protocol;

in a converter coupled to the financial subsystem, converting the protocol of the financial subsystem into a common request message structure;

in a tax engine;

storing tax processing logic for analyzing tax related financial contract data for a plurality of financial contract types;

receiving the financial contract data in the common request message structure from the converter; and

applying the tax processing logic to the tax related financial contract data in response to the financial contract data.

25. The method of claim 24 wherein the tax engine is separate from the financial subsystem.

26. The method of claim 24 wherein the financial contract type is an insurance contract.

27. The method of claim 24 wherein the financial contract type is an annuity contract.

28. The method of claim 24 wherein the tax engine includes a message-based architecture.

29. The method of claim 24 further comprising, in the tax engine, transforming flat, specific information to generic information inside objects.

30. The method of claim 24 wherein the tax engine includes a plurality of sub-components, wherein a first sub-component models rules associated with generic tax legislation and a second sub-component provides a product-related tax interpretation.

31. The method of claim 24 wherein the tax engine applies the tax processing logic without instructions from the financial subsystem.

32. The method of claim 24 wherein tax legislation is embodied in objects, which include a plurality of separate test objects to model a plurality of regulatory tax sections, and whereby the test objects remain resident during processing and retain applicable results for further use.

33. The method of claim 24 wherein the tax engine analyzes the tax related financial contract data on a per transaction basis.

34. The method of claim 24 further comprising:

storing tax related financial contract data in a database managed by the converter; and

invoking generic tax computations from the tax processing logic in the tax engine in response to a client application.

35. The method of claim 34 wherein the tax related financial contract data is independent of a source of the tax computations.

36. The method of claim 24 further comprising, in the tax engine, applying tax processing logic based on a comparison of before and after states of the financial contract.

37. The method of claim 36 further comprising, in the tax engine, analyzing changes to tax-related insurance parameters.

38. The method of claim 36 wherein the financial subsystem is an accounting system.

39. The method of claim 36 wherein the contract states are modeled by objects representing the financial contract and an associated component, and wherein each after image state object is related to a corresponding before image state object.

40. The method of claim 39 wherein the comparison is performed by:

sending a message to the after image state objects; and

in the after image state objects, interrogating respective related before image state objects.

41. The method of claim 36 wherein the tax engine analyzes tax compliance for financial applications.

42. The method of claim 41 wherein the financial subsystem includes a financial services commission module.