Automated Tax Data Collection via Messaging for Return Preparation
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Solution Overview
Problem
Tax preparation applications require users to re-enter changes and updates to prior year's tax returns during the preparation of the following year's return, leading to additional work and inefficiency, as these changes often occur before the next year's application is used.
Innovation Solution
A method and system that allow data collection and population of future tax return forms through periodic messages and responses from a user's communication device, enabling partial completion of tax returns before the user begins preparation, even before the tax preparation application is available or launched.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If users re-enter changes and updates during preparation of the following year's tax return, then the tax return can be completed, but additional work and time are required from the user
Solution Approach 1:
The system performs preliminary data collection and population of tax return forms before the user actually begins preparing the tax return. Messages are sent to users during the current tax year to collect data that will be needed in the future year, and this data is automatically populated into the next year's tax return forms, eliminating the need for users to re-enter information.
2Ease of operation
If data is collected and populated before the user begins preparation, then user workload is reduced, but the system complexity increases
Solution Approach 1:
The system introduces an intermediary automated messaging and data collection layer between the user and the tax return preparation process. This intermediary system sends messages to users, collects responses, and automatically populates forms, thereby simplifying the user's interaction while managing the complexity within the system itself rather than requiring complex user actions.
3Loss of information
If periodic messages are sent to users to collect data, then data can be gathered ahead of time, but communication infrastructure and messaging systems are required
Solution Approach 1:
The system uses a universal messaging platform that can serve multiple functions: sending reminders to users, collecting data responses, and facilitating communication between the tax preparation system and users. This multi-functional approach reduces the need for specialized communication infrastructure by leveraging existing universal communication channels.
Data Source
AI summary
Collecting tax return data and integrating collected tax return data into a future electronic tax return. A computer in communication with a tax authority stores first year electronic tax return data of a user that prepared the tax return with a tax preparation application for that year. The computer sends a first electronic message such as an e-mail or text message to a communication device of the user asking whether data in the first year tax return has changed or to verify prior data. The user sends a response to the message using the communication device. Verified and changed data in the response may be stored for inclusion in an electronic tax return of the following or second year. The second year tax return may also be partially prepared utilizing the response from the user. Thus, when the user launches the tax preparation application for the second year, the electronic tax return for the second year is already partially completed to give the user a head start on preparing that electronic tax return.