Your mission probably sounds simple and familiar: maximize tax revenue, minimize administrative costs, and ensure all taxpayers pay what they owe. The reality is much tougher:
- Departmental constraints do not provide all of the people or tools necessary.
- Your team works incredibly hard yet cannot develop skills fast enough to keep pace with new fraudulent practices.
- Political realities may prevent you from pursuing all cases.
- You are facing a maze of over one million businesses.
So how do you find the best starting point?
XDS’ solutions and services are going to make your life easier. We will help you identify undervalued compliance opportunities, identify the least compliant taxpayers, help align your staff to boost throughput and provide analytics to ensure compliance sticks. You do not need to sift through millions of businesses. Our statistics and insights will guide you to the least compliant taxpayers.
We accomplish this by adapting to your existing data regardless of the vendor or system architecture. We’ll integrate your existing data sources into our staging platform. That platform allows us to immediately run analytic routines and identify your best audit opportunities. Our platform also provides an application to help you filter through the leads. You can select the leads for audit, or tell the model why you didn’t like the lead so it can automatically learn your preferences. We won’t displace your existing database environment or your audit workflow solution.
Doesn’t my Integrated Tax System already provide an audit selection component?
The typical answers are “maybe”, “kind of” and “hopefully”. The core function of an Integrated Tax System (ITS) is to process returns and payments for multiple tax types in one system. ITS vendors are known for their focus on end-to-end processing and reporting. That is the ITS vendor’s primary focus and undisputed expertise.
Unfortunately, they are not heavily focused on integrating external data and state-of-the-art machine learning techniques. If they included data-driven audit selection in the project scope, it would likely be at the end of a five to six-year project. Additionally, their methodologies do not embrace rapid learning and incremental value delivery through an iterative process. That leaves a very large gap of not maximizing the potential of the audit group.
Consider what could be accomplished by not waiting for a process and tools that may not deliver the expected outcome, and not taking advantage of a large cost savings, gained efficiencies and increased compliance. The ROI experienced by our clients is in the 1,000% range.
XDS offers the opportunity to realize results in 90 days for fair, equitable, efficient and productive audit selection. Our solution is also independent of your tax system. With XDS as your partner, you will work with a team that has real-world experience with state tax auditing and data-driven audit selection. Supercharge your audit results – contact XDS today!