Systems and methods for tax collection, analysis and compliance

Abstract

A tax matching and identification system are disclosed. The system may receive tax information from one or more sources, combine all or some of the information into a single form, and apply various software processes to calculate a weighted average. The average is then compared to a threshold to determine whether a person or entity is in tax compliance.

Description

[0001]This application is a continuation-in-part of and claims priority to U.S. patent application Ser. No. 13 / 588,838, which is hereby incorporated by reference in its entirety.BACKGROUND[0002]Tax collection and compliance is a major expense for tax authorities. Tax collection and compliance includes ensuring that all vendors that are subject to a particular tax, pay the tax, as well as ensuring that the amount paid by each entity is correct.[0003]Some methods for tax collection and compliance rely on the tax authorities themselves to identify vendors who are not compliant. For example, the tax authorities may rely on investigators to determine vendors doing business in their jurisdiction that are subject to one or more taxes, but that have not filed a tax return. However, such methods are not cost effective and may fail to identify non-compliant vendors.[0004]Other methods for tax collection and compliance generally have been focused on the point-of-sale. Examples include software...

AI Technical Summary

Benefits of technology

The patent is about a method and system for automatically processing and combining business and tax registration information. The system applies advanced algorithms to determine the validity and format of the addresses and performs a matching process to determine if there is a match between the business and TIN information. The system calculates a weighted average of the TIN and business name matches, as well as an exact match between the addresses, to determine if there is a match above a certain threshold. This system could be useful for automating the process of connecting businesses with relevant government entities to streamline the registration process.

Problems solved by technology

Tax collection and compliance is a major expense for tax authorities.

However, such methods are not cost effective and may fail to identify non-compliant vendors.

However, the use of such systems is voluntary and therefore does not address non-compliance or tax evasion.

Another problem with existing tax collection and compliance systems is that vendors typically pay their tax obligations periodically, and frequently monthly.

This creates several drawbacks for tax authorities.

One such drawback is that tax authorities typically receive all of the tax revenue at the end of the applicable period and as a result they are not able to determine if the revenue that is received during the period will meet or fail to meet expectations until well after the period has ended and taxes are due.

Because tax authorities generally do not have a complete understanding ahead of time of the taxes that are or will be collected with respect to a given period, they may not be able to make necessary spending adjustments or budgetary decisions.

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