Teradata's Tax Compliance Solutions


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State governments are under incredible pressure to do more with less. By embracing Teradata Tax Compliance Solutions to identify non-compliant taxpayers, ensure productivity of audit leads, and manage the case management process, 8 US States have recovered nearly $1.5 billion in revenue to the state due but previously not collected.

For more information, please see www.teradata.com/tax

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Teradata's Tax Compliance Solutions

  1. 1. Teradata’s Tax Compliance Solutions Fall 2010
  2. 2. Do More with Less <ul><li>Teradata’s </li></ul><ul><li>Tax Compliance </li></ul><ul><li>Solutions allow </li></ul><ul><li>State Revenue </li></ul><ul><li>agencies to do </li></ul><ul><li>more with less . </li></ul>
  3. 3. Teradata Tax Compliance System Significant Return on Investment <ul><li>Direct Revenues </li></ul><ul><ul><li>Identification of non-compliance activity </li></ul></ul><ul><ul><li>Improved collection ratio </li></ul></ul><ul><ul><li>Increased subsequent revenue </li></ul></ul><ul><li>Indirect Benefits </li></ul><ul><ul><li>Increased productivity </li></ul></ul><ul><ul><li>Increased customer satisfaction </li></ul></ul><ul><ul><li>Enhanced automation </li></ul></ul><ul><ul><li>Increased quality and accuracy of compliance activities </li></ul></ul><ul><ul><li>Ability to advance & operationalize performance measures </li></ul></ul><ul><ul><li>Better understand tax non-compliance and proactively promote voluntary compliance </li></ul></ul>
  4. 4. Teradata Provides a Variety of Services and Solutions for State Governments <ul><li>Arizona </li></ul><ul><li>Iowa </li></ul><ul><li>Maryland </li></ul><ul><li>Missouri </li></ul><ul><li>New Jersey </li></ul><ul><li>Ohio </li></ul><ul><li>Oklahoma </li></ul><ul><li>Texas </li></ul>New revenue in 60-90 days within project start! Revenue projection achieved in every state! $1.5 Billion and counting….
  5. 5. Do More with Less <ul><li>Increase Revenue </li></ul><ul><ul><li>Recover revenue lost from non-filing, under </li></ul></ul><ul><ul><li>reporting and non payment, </li></ul></ul><ul><ul><li>and increase future </li></ul></ul><ul><ul><li>revenue through </li></ul></ul><ul><ul><li>improved voluntary </li></ul></ul><ul><ul><li>compliance by </li></ul></ul><ul><ul><li>deeper analysis of </li></ul></ul><ul><ul><li>detailed information. </li></ul></ul>
  6. 6. Tax Compliance Iowa Department of Revenue (DoR) Teradata’s EDW solution for Iowa has increased efficiency throughout the DoR, providing timely and accurate reporting. System includes a customized case management system for audits, and advanced business capabilities for end-users and managers. Solution The Iowa Department of Revenue administers Iowa’s tax laws. The DoR required an enterprise wide EDW to identify noncompliant taxpayers, and increase revenue by collecting back-taxes owed by businesses and persons identified under the project. DoR utilized 20 disparate systems too inefficient for required capabilities, along with a mix of mainframe applications and various file extracts. Problems included labor and paper-intensive processes, the inability to fully utilize available data sources, and limited and time-consuming reporting abilities. Goals and Challenges <ul><li>Teradata’s EDW for Iowa utilizes IRS, state, and other data to determine taxpayer compliance. </li></ul><ul><li>The EDW has generated over $156M in revenue; continues to generate $14M annually. </li></ul><ul><li>The EDW has drastically increased productivity and lead generation. </li></ul>Results
  7. 7. Do More with Less <ul><li>Identify Tax Non-Compliance </li></ul><ul><ul><li>By matching multiple internal </li></ul></ul><ul><ul><li>and external data sources </li></ul></ul><ul><ul><li>from other government agencies, </li></ul></ul><ul><ul><li>Federal government, and </li></ul></ul><ul><ul><li>commercial sources, </li></ul></ul><ul><ul><li>determine tax non-compliance </li></ul></ul><ul><ul><li>by identifying non-filers, </li></ul></ul><ul><ul><li>under-reporters, and </li></ul></ul><ul><ul><li>non-registered taxpayers. </li></ul></ul>
  8. 8. Tax Compliance New Jersey Division of Taxation (DoT) Teradata’s Tax Compliance System for New Jersey provides innovative capabilities to improve all areas of tax compliance. The system has been customized to best meet New Jersey’s requirements, and has produced thousands of leads since 2005. Solution The New Jersey Division of Taxation is responsible for administering the collection of all taxes throughout the state. The DoT required an enterprise-wide EDW to identify leads on noncompliant taxpayers and under-reporters, and to provide advanced query and analytical tools. New Jersey’s various disparate systems were unable to provide the advanced capabilities desired, including timely business reporting, the integration of data from various sources, and future scalability and expansion into other tax relevant areas. Goals and Challenges <ul><li>First revenue from Tax Compliance project was realized in its third month. </li></ul><ul><li>Teradata’s EDW for New Jersey utilizes IRS, state and various other data sources. </li></ul><ul><li>The EDW has generated over $184M in revenue, with thousands of leads pending closure. </li></ul>Impact
  9. 9. Do More with Less <ul><li>Improve Reporting Accuracy and Timeliness </li></ul><ul><ul><li>Determine the fiscal impact </li></ul></ul><ul><ul><li>to legislative inquiries within minutes </li></ul></ul><ul><ul><li>- not days and weeks. </li></ul></ul><ul><ul><li>Find answers to the “what if” </li></ul></ul><ul><ul><li>questions through the use of </li></ul></ul><ul><ul><li>integrated historical </li></ul></ul><ul><ul><li>and current </li></ul></ul><ul><ul><li>data. </li></ul></ul>
  10. 10. Tax Compliance Oklahoma Tax Commission (OTC) Goals and Challenges Non-payment of taxes impedes the funding of government functions. With the changing and challenging economy, the need for innovation is especially important within the government industry. Oklahoma began a 2-phase initiative to collect delinquent tax liabilities. The second phase was designed to identify and collect unreported and unpaid delinquencies following a voluntary compliance initiative. The need to increase tax compliance with non-filers and under-reporters via a process that is both efficient and effective within all tax types administered by the Oklahoma Tax Commission. Solution The OTC leverages data warehousing to improve tax compliance and increase the revenue it collects for the state. The OTC data warehouse is the foundation for multiple implementations enabling the agency to achieve unqualified success through integration of internal and external data; interfaces to other systems; discovery programs; workload prioritization through scoring and ranking; creation of actionable and analytical Business Intelligence reports; tracking of agency-wide compliance activity with workload reminders which provide a current and historical view of compliance activity. Results <ul><li>Increased tax collections for the State of Oklahoma. </li></ul><ul><li>$25M collected in the first 19 months of project. </li></ul><ul><li>Conversion rate of contacts to payments of approx 31% </li></ul><ul><li>Elimination of labor intensive manual processes. </li></ul><ul><li>Complete view of our customers. </li></ul><ul><li>Improved and enhanced customer service. </li></ul><ul><li>Timely and actionable data. </li></ul>
  11. 11. Do More with Less <ul><li>Improve Voluntary Tax Compliance </li></ul><ul><ul><li>Analyze audit results to </li></ul></ul><ul><ul><li>determine the cause and effect. </li></ul></ul><ul><ul><li>Do you need to improve tax instructions, increase </li></ul></ul><ul><ul><li>taxpayer or tax preparer education, </li></ul></ul><ul><ul><li>initiate a legislative change, </li></ul></ul><ul><ul><li>or change the tax form? </li></ul></ul><ul><ul><li>What insights can be </li></ul></ul><ul><ul><li>gleaned from your </li></ul></ul><ul><ul><li>data? </li></ul></ul>
  12. 12. Tax Compliance Texas State Comptroller of Public Accounts (CPA) Teradata’s EDW solution for Texas includes data from multiple sources, provides advanced analytical capabilities, high-speed querying and reporting, and the ability to expand into other functional areas of the agency. The system has drastically improved the identification of noncompliance, which has led to significant additional revenue for the state. Solution Texas’ CPA required a Data Warehouse for the identification of non-registered taxpayers, to promote voluntary tax compliance among non- and under-reporting filers, and to generate additional revenue via discovery of all types of noncompliance. The disparate computer and database systems utilized by Texas’ CPA were far too outdated and inefficient to provide required capabilities, such as advanced analytics and data consolidation. Goals and Challenges <ul><li>Teradata’s EDW allowed the CPA to identify and collect over $ 900M in new revenue. </li></ul><ul><li>The Texas CPA EDW has identified thousands of non-compliant taxpayers. </li></ul><ul><li>Users of the EDW uncover an average of $ 1M in additional revenue each week. </li></ul>Results
  13. 13. Do More with Less <ul><li>Improve Customer Service </li></ul><ul><ul><li>Through the use of </li></ul></ul><ul><ul><li>multiple internal and external </li></ul></ul><ul><ul><li>data sources, generate smart </li></ul></ul><ul><ul><li>and productive audit leads </li></ul></ul><ul><ul><li>– be less intrusive to the </li></ul></ul><ul><ul><li>truly compliant taxpayer. </li></ul></ul><ul><ul><li>Have answers at </li></ul></ul><ul><ul><li>the fingertips of </li></ul></ul><ul><ul><li>your Case Managers </li></ul></ul><ul><ul><li>and Auditors. </li></ul></ul>
  14. 14. Tax Compliance Missouri Department of Revenue (DoR) Goals and Challenges The Missouri Department of Revenue is responsible for administering the collection of all state and local taxes throughout Missouri. The DoR required an enterprise wide EDW to identify noncompliant taxpayers and under-reporters, and to provide query tools and a full case-management solution. Missouri’s various disparate systems were insufficient for the advanced capabilities desired, including case management, advanced reporting, and the ability to utilize all available data sources. Solution Teradata’s EDW solution for Missouri provides timely and accurate reporting and mining, along with case management for all audits. The Tax Compliance System has produced over 200,000 leads since 2004, and is fully customizable in order to best meet the requirements of Missouri. Results <ul><li>Teradata’s EDW for Missouri utilizes IRS, state and other data sources to determine taxpayer compliance. </li></ul><ul><li>The EDW has generated over $116M in revenue, and continues to generate new audit leads everyday. </li></ul>
  15. 15. Do More with Less <ul><li>Identify Fraud & Abuse </li></ul><ul><ul><li>Find taxpayer and </li></ul></ul><ul><ul><li>tax preparer fraud and abuse </li></ul></ul><ul><ul><li>through queries across tax types </li></ul></ul><ul><ul><li>using historical data. </li></ul></ul><ul><ul><li>Build upon existing Discovery </li></ul></ul><ul><ul><li>and audit selection programs </li></ul></ul><ul><ul><li>programs to identify new </li></ul></ul><ul><ul><li>areas of non-compliance. </li></ul></ul>
  16. 16. Tax Compliance Arizona Department of Revenue (DOR) Teradata’s solution for Arizona consists of an EDW for the consolidation of various data-sources, innovative analytical and query capabilities, and a case management system for all audits. The system has improved detection and resolution of cases of noncompliance, and has generated significant ROI. Solution Arizona DOR’s disparate computer and database systems were outdated and too inefficient for the desired capabilities, such as data consolidation and advanced analytical and business query tools. Problem Arizona’s Department of Revenue required a tax compliance program for the identification of non-registered taxpayers, to manage the audit process for non- and under-reporting filers, and to generate additional revenue for the state via the detection and resolution of cases of tax noncompliance. Situation <ul><li>Teradata’s EDW allowed the Arizona to identify and collect over $106M in new revenue. </li></ul><ul><li>Case management features have managed, processed and tracked the thousands of noncompliance leads generated by the EDW. </li></ul>Impact
  17. 17. Tax Solutions > Teradata Tax Compliance Solution (TTCS) Teradata Tax Compliance Data Warehouse Tax Logical Data Model, processes, and tools Internal and External Data Sources External Interfaces <ul><li>Integrated Tax System </li></ul><ul><li>Legacy Tax System </li></ul><ul><li>Collections systems </li></ul>Taxpayer Correspondence <ul><li>Lead management and optimization </li></ul><ul><li>Resource and workload optimization </li></ul><ul><li>Correspondence </li></ul><ul><li>Integration with tax system </li></ul><ul><li>Actionable reports </li></ul><ul><li>CAMS Mobile </li></ul><ul><li>Tax calculations </li></ul><ul><li>Workpapers </li></ul>Case Management Solution (CAMS) Module <ul><li>Lead Generation Module (LGM) </li></ul><ul><li>Scoring and ranking </li></ul><ul><li>Modeling and analytics </li></ul><ul><li>Soft matching </li></ul><ul><li>Address standardization </li></ul>Discovery Program Module <ul><li>Leverages State’s reporting environment </li></ul><ul><li>Current and historical </li></ul><ul><li>Custom reports </li></ul><ul><li>Performance Information Dashboard </li></ul>Reporting Module <ul><li>Revenue tracking – current and future </li></ul><ul><li>Reporting and analysis </li></ul><ul><li>Discovery program optimization </li></ul>Revenue Tracking Module
  18. 18. The Teradata Tax Solution Difference <ul><li>Data warehousing and analytics is all we do </li></ul><ul><li>World leading data warehouse technology </li></ul><ul><ul><li>…with a totally business-focused tax solution </li></ul></ul><ul><li>Project start to revenue in 60 to 90 days </li></ul><ul><li>Revenue projections are delivered </li></ul><ul><li>Complete set of compliance tools </li></ul><ul><li>100% success with ALL tax solution projects </li></ul><ul><li>Experienced in coordinating with integrated tax system implementations </li></ul><ul><li>Every customer is a strong reference!!! </li></ul>Approx $1.5 Billion in recovered tax revenue