IRS Uses Analytics To Help Collect Delinquent Taxes

December 10, 2011
FedCyber Wire, Solution Providers, Spending, Technology
No Comment

The IRS has awarded SAS Institute a $6.25 million contract to use its data analytics technology to help recover unpaid taxes, detect tax fraud schemes, and reduce the number of fraudulent refunds the agency pays out.

The agency is using SAS Analytics software for its new electronic Return Review Program (RRP) system, which the IRS hopes will reduce the $345 million tax gap, according to the company. The gap represents what taxpayers owe and what they pay voluntarily and on time.

Software from SAS is aimed at improving fraud detection, uncovering noncompliance when tax returns are filed rather than later on in the process, and reducing the issuance of refunds that seem suspect, according to the company.

The software also is designed to help the IRS reduce the number of fraudulent tax refunds, as well as the number of refunds that are erroneously paid out. It also can help root out fraud schemes and increase IRS tax collections, according to SAS.

The IRS plans to use the software to improve how it detects, prevents, and resolves both criminal and civil noncompliance with tax law.

via InformationWeek Government, continued here.