teradata's tax compliance solutions

Teradata’s Tax Compliance Solutions

Fall 2010

Teradata Confidential2 > 04/18/23

Do More with Less

Teradata’s

Tax Compliance

Solutions allow

State Revenue

agencies to do

more with less.

Teradata Confidential3 > 04/18/23 3

Teradata Tax Compliance System Significant Return on Investment

• Direct Revenues> Identification of non-compliance activity> Improved collection ratio > Increased subsequent revenue

• Indirect Benefits > Increased productivity> Increased customer satisfaction> Enhanced automation> Increased quality and accuracy of compliance activities> Ability to advance & operationalize performance measures> Better understand tax non-compliance and proactively

promote voluntary compliance


New revenue in 60-90 days within project start!Revenue projection achieved in every state!

Teradata Provides a Variety of Services and Solutions for State Governments

• Arizona• Iowa• Maryland• Missouri• New Jersey• Ohio• Oklahoma• Texas

$1.5 Billion and counting….


Do More with Less

Increase Revenue

Recover revenue lost from non-filing, under

reporting and non payment,

and increase future

revenue through

improved voluntary

compliance by

deeper analysis of

detailed information.


Tax ComplianceIowa Department of Revenue (DoR)

Goals and Challenges

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.

Solution

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.

Results• Teradata’s EDW for Iowa utilizes

IRS, state, and other data to determine taxpayer compliance.

• The EDW has generated over $156M in revenue; continues to generate $14M annually.

• The EDW has drastically increased productivity and lead generation.


Do More with Less

Identify Tax Non-Compliance

By matching multiple internal

and external data sources

from other government agencies,

Federal government, and

commercial sources,

determine tax non-compliance

by identifying non-filers,

under-reporters, and

non-registered taxpayers.


Tax ComplianceNew Jersey Division of Taxation (DoT)


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.

Solution

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.

Impact• First revenue from Tax

Compliance project was realized in its third month.

• Teradata’s EDW for New Jersey utilizes IRS, state and various other data sources.

• The EDW has generated over $184M in revenue, with thousands of leads pending closure.


Do More with Less

Improve Reporting Accuracy and Timeliness

Determine the fiscal impact

to legislative inquiries within minutes

- not days and weeks.

Find answers to the “what if”

questions through the use of

integrated historical

and current

data.


Tax ComplianceOklahoma Tax Commission (OTC)


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

• Increased tax collections for the State of Oklahoma.

• $25M collected in the first 19 months of project.

• Conversion rate of contacts to payments of approx 31%

• Elimination of labor intensive manual processes.

• Complete view of our customers.

• Improved and enhanced customer service.

• Timely and actionable data.


Do More with Less

Improve Voluntary Tax Compliance

Analyze audit results to

determine the cause and effect.

Do you need to improve tax instructions, increase

taxpayer or tax preparer education,

initiate a legislative change,

or change the tax form?

What insights can be

gleaned from your

data?


Tax ComplianceTexas State Comptroller of Public Accounts (CPA)


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.

Solution

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.

Results• Teradata’s EDW allowed the CPA

to identify and collect over $900M in new revenue.

• The Texas CPA EDW has identified thousands of non-compliant taxpayers.

• Users of the EDW uncover an average of $1M in additional revenue each week.


Do More with Less

Improve Customer Service

Through the use of

multiple internal and external

data sources, generate smart

and productive audit leads

– be less intrusive to the

truly compliant taxpayer.

Have answers atthe fingertips of

your Case Managers

and Auditors.


Tax Compliance Missouri Department of Revenue (DoR)


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

• Teradata’s EDW for Missouri utilizes IRS, state and other data sources to determine taxpayer compliance.

• The EDW has generated over $116M in revenue, and continues to generate new audit leads everyday.


Do More with Less

Identify Fraud & Abuse

Find taxpayer and

tax preparer fraud and abuse

through queries across tax types

using historical data.

Build upon existing Discovery

and audit selection programs

programs to identify new

areas of non-compliance.


Tax ComplianceArizona Department of Revenue (DOR)

Situation

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.

Problem

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.

Solution

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.

Impact• Teradata’s EDW allowed the

Arizona to identify and collect over $106M in new revenue.

• Case management features have managed, processed and tracked the thousands of noncompliance leads generated by the EDW.

Teradata Confidential17 > 04/18/2317 >

Teradata Tax Compliance Solution (TTCS)

Teradata Tax Compliance Data Warehouse

Tax Logical Data Model, processes, and tools

Tax Solutions

Internal and External Data Sources

External Interfaces

• Integrated Tax System• Legacy Tax System• Collections systems

Taxpayer Correspondence

• Lead management and optimization• Resource and workload optimization• Correspondence• Integration with tax system• Actionable reports• CAMS Mobile• Tax calculations• Workpapers

Case Management

Solution (CAMS) Module

• Lead Generation Module (LGM)• Scoring and ranking• Modeling and analytics• Soft matching• Address standardization

Discovery Program Module

• Leverages State’s reporting environment• Current and historical• Custom reports• Performance Information Dashboard

Reporting Module

• Revenue tracking – current and future

• Reporting and analysis• Discovery program

optimization

Revenue Tracking Module


The Teradata Tax Solution Difference

• Data warehousing and analytics is all we do

• World leading data warehouse technology…with a totally business-focused tax solution

• Project start to revenue in 60 to 90 days• Revenue projections are delivered• Complete set of compliance tools• 100% success with ALL tax solution projects• Experienced in coordinating with integrated tax system

implementations• Every customer is a strong reference!!!

Approx $1.5 Billion in recovered tax revenue

teradata's tax compliance solutions

Business

areas of tax compliance

revenue projection

taxpayer compliance

voluntary compliance

tax noncomplianceby

iowas tax laws

challenges teradatas

advanced capabilities