Revenue agencies face an environment of electronic filing, reduced resources, new taxpayer expectations and complex fraud schemes.
- How can revenue agencies use data to improve risk management practices?
- How can revenue agencies use data to better understand taxpayer behaviors?
- How can revenue agencies improve debt collection, returns processing and audit activities?
More and more, leading revenue agencies are capturing significant amounts of data from taxpayers and third party providers. Many are asking questions like these and want to better analyze this data to understand taxpayer behaviors, improve fraud detection and risk management and enhance compliance enforcement.
Some are looking to business intelligence and predictive analytics to create new value from data. They are using quantitative methods to derive actionable insights and outcomes from data to meet these objectives and improve agency functions. Standard practice in the private sector, analytics can help revenue agencies achieve high performance by:
- Generating more revenue.
- Enhancing compliance via targeted compliance enforcement activities.
- Improving audit, collections and returns processing procedures.
- Optimizing use of personnel and resources.
- Improving and streamlining taxpayer service.
- Customizing service delivery channels based on taxpayer preference.
- Improving operational visibility.
- Understanding voluntary compliance.
- Enabling faster and better decision making.
- Optimizing the return on existing business and technology investments.
- Reducing tax fraud.