The infamous April 15th deadline is drawing near. Like many of you, I spent last weekend filling out my tax returns. Did you know that, with over 140 million taxpayers in the US, income tax evasion and fraud are the main sources of lost tax revenue? In 2007, it was close to $350 billion — about 14% of the US government’s revenue for the fiscal year. How can tax and revenue agencies like the IRS and California’s Franchise Tax Board efficiently detect fraud and collect lost tax revenue?
One of the keys to detecting fraud is having a clear view of the taxpayer population. Creating a ‘Unified View of Taxpayer’ can help agencies understand a taxpayer’s history, accurately identify honest taxpayers from fraudulent ones, detect tax payment anomalies, link taxpayers to their existing financial transactions to detect suspicious patterns and concentrate agency resources on truly suspicious tax returns for auditing purposes.
Additionally, it creates the capability to detect fraud, ensure record keeping and can actually generate new revenue streams. How? One successful approach is through implementing an MDM hub. It provides agencies with the ability to create a centralized view of their customers, in this case, taxpayers. And by using identity search technology across the disparate agency systems to accurately find a taxpayer’s identity and help detect fraudulent behavior and activity.
Government agencies around the world are already accurately identifying taxpayers and improving tax revenue collection processes. For more details see the white paper: Identity Resolution Government Agencies Around the World Detect Fraud and Improve Tax Revenue Collection.