Taxpayer Identity Verification via External Data Cross-Reference

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Solution Overview

Problem

Current fraud detection systems for tax returns require extensive manual review and additional authentication, which are time-consuming and costly, and often rely on information that cannot be accessed by the system, leading to inefficiencies in determining the authenticity of tax returns.

Innovation Solution

A verification engine that uses a refinement verification process to analyze tax returns with uncertain authenticity by identifying verifiable data sets and accessing external repositories to verify taxpayer information, reducing the need for manual review and authentication.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If manual review and additional manual self-authentication are used to verify tax returns, then the accuracy of determining fraudulent or genuine tax returns is improved, but the time consumption and cost increase significantly

Engineering Contradiction:

Improveaccuracy of determining fraudulent or genuine tax returnsVSAvoidtime consumption for manual review and authentication

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent introduces an intermediary verification system that acts as a mediator between the tax return submission and manual review processes. This verification engine automatically checks tax returns against external data sources (credit bureaus, motor vehicle departments, etc.) to authenticate taxpayer information, thereby reducing the number of cases requiring manual review while maintaining high accuracy in fraud detection

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent replaces the mechanical manual review process with an automated verification engine that uses computer algorithms to analyze taxpayer information against external databases. This substitution eliminates the need for human reviewers to manually examine each tax return, significantly reducing time consumption while maintaining or improving detection accuracy through consistent application of verification criteria

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Productivity

If manual review staff are increased to handle more tax returns, then the productivity of fraud detection is improved, but the cost and complexity of the system increase

Engineering Contradiction:

Improvenumber of tax returns processedVSAvoidstaffing requirements and system complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The verification engine enables self-service automation by automatically performing verification tasks that would otherwise require human staff. The system autonomously queries external data sources, compares taxpayer information against multiple criteria, and makes determination decisions without human intervention for routine cases, thereby increasing productivity without proportionally increasing staffing requirements or system complexity

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The verification engine is designed as a universal system that can handle multiple types of verification tasks through a single platform. It can verify various taxpayer information types (identity, address, employment, etc.) against multiple external data sources, and can process different categories of tax returns using the same core verification logic, thereby improving productivity without requiring separate systems or specialized staff for each verification type

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Reliability

If additional manual self-authentication steps are required from users, then the reliability of user verification is improved, but the ease of operation and user experience deteriorate

Engineering Contradiction:

Improveverification reliabilityVSAvoiduser experience and convenience

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The verification engine performs preliminary verification actions automatically before tax returns are submitted for manual review. By pre-authenticating taxpayer information against external data sources and identifying high-risk cases in advance, the system eliminates the need for users to undergo additional manual authentication steps for low-risk returns, thereby improving ease of operation while maintaining verification reliability through automated pre-screening

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS10872389B2Taxpayer identity determination through external verfication

Publication Date: 2020.12.22 HRB INNOVATIONS

AI summary

A refinement verification engine authenticates a user submitting a subject tax return. The user is associated with an initial taxpayer identity confidence score in an intermediate range, such that the authenticity of the user is uncertain. The refinement verification engine is configured to perform the following steps: receiving tax information associated with the subject tax return for a subject taxpayer; acquiring an initial taxpayer identity confidence score that is indicative of a likelihood that the user is genuine; determining that the initial taxpayer identity confidence score falls into a predetermined range; identifying a verifiable data set within the taxpayer information; accessing an external data store containing information related to the verifiable data set; and determining whether information indicative of the verifiable data set is present in the external data store.