Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
U.S., State Governments Rely on New Software to Combat Tax Fraud
Author: Scarinci Hollenbeck, LLC
Date: August 7, 2013
Key Contacts
Back
As the Internal Revenue Service attempts to close the multibillion-dollar tax gap, a large portion of its resources are being geared to combat tax fraud involving sizable assets. This includes offshore tax havens, tax evasion, and, as of late, unpaid or incorrectly calculated estate taxes. However, recent crimes relating to sophisticated identity theft rings have also bilked the government out of millions of dollars, and federal and state agencies are now implementing several new types of web software to combat these tax law violations.
The IRS will rely upon a combination of complex software from several different providers to ensure that tax returns are legitimate, the Wall Street Journal reports. The business software providers that will assist the IRS in accomplishing these goals include SAS Institute, LexisNexis Group, and International Business Machines (IBM). The various software types work in different ways that complement each other and provide a more accurate and comprehensive tax infrastructure than any stand-alone methods. For example, the SAS software uses publicly available data to verify a person’s identity instantly, the Journal explains.
LexisNexis compares all tax-filing information against a database of personal information that the company has been collecting since the 1990s. As an example, the Journal explained that if a state receives a tax return from a person who claims to be employed in one state or have a certain number of children, but the LexisNexis database shows different information, the return will be flagged and individuals may be required to provide proof of their identity.
The IBM software works by “predicting” criminal activity based on individuals’ relationships and actions, but the firm failed to elaborate on how the system specifically works.
Like many other government agencies, the IRS has been burdened by budget cuts. However, the agency is attempting to find more creative ways to combat tax crimes through technology and international agreements.
- Practices: Tax, Trusts & Estates
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
U.S., State Governments Rely on New Software to Combat Tax Fraud
Author: Scarinci Hollenbeck, LLC
As the Internal Revenue Service attempts to close the multibillion-dollar tax gap, a large portion of its resources are being geared to combat tax fraud involving sizable assets. This includes offshore tax havens, tax evasion, and, as of late, unpaid or incorrectly calculated estate taxes. However, recent crimes relating to sophisticated identity theft rings have also bilked the government out of millions of dollars, and federal and state agencies are now implementing several new types of web software to combat these tax law violations.
The IRS will rely upon a combination of complex software from several different providers to ensure that tax returns are legitimate, the Wall Street Journal reports. The business software providers that will assist the IRS in accomplishing these goals include SAS Institute, LexisNexis Group, and International Business Machines (IBM). The various software types work in different ways that complement each other and provide a more accurate and comprehensive tax infrastructure than any stand-alone methods. For example, the SAS software uses publicly available data to verify a person’s identity instantly, the Journal explains.
LexisNexis compares all tax-filing information against a database of personal information that the company has been collecting since the 1990s. As an example, the Journal explained that if a state receives a tax return from a person who claims to be employed in one state or have a certain number of children, but the LexisNexis database shows different information, the return will be flagged and individuals may be required to provide proof of their identity.
The IBM software works by “predicting” criminal activity based on individuals’ relationships and actions, but the firm failed to elaborate on how the system specifically works.
Like many other government agencies, the IRS has been burdened by budget cuts. However, the agency is attempting to find more creative ways to combat tax crimes through technology and international agreements.