Virtual Venue for Taxpayer Data Monetization
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Solution Overview
Problem
There is no existing platform for taxpayers to monetize their personal and financial information from tax returns, despite its value to third parties, due to legal and regulatory constraints on disclosure by tax preparers and financial professionals.
Innovation Solution
A virtual venue is created where taxpayers can sell their financial information to third parties, involving steps such as receiving taxpayer data, filtering it to produce a marketable set, generating third-party values, presenting options for sale, and facilitating transactions, using a computerized method and system involving tax preparation devices, servers, and third-party devices.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If tax preparers and financial professionals disclose taxpayer information to third parties, then third parties can obtain valuable financial data, but privacy laws and tax regulations are violated and taxpayer confidence is breached
Solution Approach 1:
The patent introduces a virtual venue as an intermediary platform that enables third parties to access taxpayer information without tax preparers or financial professionals directly disclosing it. The system receives information from taxpayers who have authorized disclosure, filters and anonymizes it, then makes it available to third parties. This intermediary structure allows information flow while maintaining compliance with privacy laws and regulations, as the traditional gatekeepers (tax preparers) never directly disclose the information.
2Loss of information
If taxpayers disclose their personal information freely, then third parties can obtain valuable data for commercial use, but taxpayers lose control over their personal information
Solution Approach 1:
The system implements dynamic control mechanisms where taxpayers can adjust their information sharing preferences at any time. The virtual venue allows taxpayers to select which specific data elements to share, with whom, and under what conditions. This dynamic approach enables taxpayers to maintain control while still allowing beneficial information flow to third parties, resolving the contradiction between information availability and taxpayer control.
Solution Approach 2:
The system incorporates feedback mechanisms that provide taxpayers with visibility into how their information is being used and by whom. Through the virtual venue interface, taxpayers can monitor transactions involving their data, receive notifications about disclosures, and adjust their preferences based on this feedback. This creates a closed-loop system that maintains taxpayer control while enabling third-party access.
3Loss of energy
If a platform is created to facilitate taxpayer information sales, then taxpayers can monetize their data, but the system complexity increases significantly
Solution Approach 1:
The virtual venue is designed as a universal platform that performs multiple functions within a single system architecture. It simultaneously handles information collection from taxpayers, data filtering and anonymization, valuation assessments, transaction facilitation with multiple third parties, and compliance monitoring. This multi-functional design consolidates what would otherwise require multiple separate systems, reducing overall complexity while enabling taxpayer monetization.
Solution Approach 2:
The system incorporates self-service mechanisms that reduce the need for complex manual interventions. Automated processes handle information filtering, third-party matching, transaction coordination, and compliance verification. The virtual venue interface enables taxpayers to independently manage their information preferences and view monetization opportunities without requiring complex administrative oversight, thereby simplifying the overall system operation.
Data Source
AI summary
A computer program, a system, and a method facilitate transactions of taxpayer-specific items of information between taxpayers and third parties in a virtual venue. A set of taxpayer information related, at least in part, to a filed tax return of the taxpayer is received. The set of taxpayer information is filtered to obtain a marketable information set, which in turn includes taxpayer-specific items. A third-party value is obtained for each taxpayer-specific item, and the taxpayer is presented a sale value for each taxpayer-specific item. The taxpayer is presented an option to select at least one taxpayer-specific item to be sold in the virtual venue and an option for the taxpayer to select at least one third party to which to sell said at least one taxpayer-specific item. Upon the selection of the options by the taxpayer, the transaction is then processed and completed.