Data Warehousing and Business Intelligence

The Challenge Facing Revenue Agencies

Tax and Revenue agencies have for years accumulated vast quantities of valuable operational data, and collected external data from other agencies, municipalities and third party sources. Now tasked to leverage that strategic information and be more effective in enforcement, taxpayer education, policy analysis, management reporting and "informed" decision-making, agencies are looking to the data to answer the following questions:

• Is there a better way to find individual non-filers or business non-registrants?
  
  
• If a proposed tax law is enacted, how much revenue will be impacted and who will it affect?
  
  
• Of the top corporations in our state, who is paying the least in taxes? Why?
  
  
• Can a risk score be applied to delinquent taxpayers to vary the enforcement treatment applied, making collection efforts more efficient and freeing resources to work the more difficult cases?
  
  
• Can statistical analysis or other pattern detection algorithms of past audit history be applied to determine the attributes of a good audit case to assist in selecting the best audit leads?
  
  
• Was this audit/issue worth the effort after all appeals and abatements are factored into the analysis?
  
  

The potential gains for agencies that can effectively answer these types of questions are significant. Most agencies are yet to effectively leverage one of their most valuable assets - information. While some agencies pursue a "home grown" data warehouse, the results have not equaled expectations.


RSI has the Solution

The Data Warehousing and Business Intelligence (DW/BI) practice line, within RSI's overall Compliance Management discipline, provides the products and services Tax and Revenue agencies seek for their warehousing and BI needs. RSI's DW/BI practice line, with its nationally recognized data warehouse and compliance management product DiscoverTax® at its core, will help states succeed. Current DiscoverTax® implementations are recovering more than $250 million annually for state revenue agencies.

DiscoverTax® is a commercial off the shelf (COTS) software package exclusively designed for tax and revenue agencies to attack the compliance "tax gap" and provide a data warehouse foundation to support initiatives across operations, policy, enforcement and management functions. DiscoverTax® provides a state-of-the-art tax data warehouse solution which interconnects individual and business data from multiple sources creating a "single-entity" or "portfolio" view of each business and individual taxpayer. These comprehensive taxpayer portfolios increase overall effectiveness of Discovery and Audit programs by targeting agency resources to those accounts that are truly non-compliant, resulting in accurate and revenue-maximizing detection and recovery of non-registrants, non-filers, under-reporters and fictitious taxpayers. DiscoverTax® data warehouse provides the Collections Division a foundation used to determine the best and most economical collection treatment strategy and supports collections research. Finally, DiscoverTax® provides a tool to conduct economic analysis, legislative and policy analysis, executive management reporting and better understanding of trends and changes while they are happening.

DiscoverTax® can be installed and configured in a short period of time, providing your agency with quick results. DiscoverTax®'s comprehensive tax data warehouse toolset, advanced data standardization and matching routines, tax calculation builder, scoring engine, case selection and management functionality, table driven configuration and open design readily accommodate new data sources, new compliance initiatives, changes in case workflow, additional reporting requirements and more. The majority of available external data sources (e.g., IRS IRMF) and compliance initiatives (e.g., individual non-filer) are pre-configured, allowing your agency to start loading data quicker and begin realizing benefits sooner. All inquires via DiscoverTax®'s windows are secure and generate an audit trail of who looked at what, meeting IRS Common Criteria requirements. Security features meet IRS Guidelines and safeguard the agency from unauthorized access and disclosure.