NY turns $10 million investment into $1 billion in savings
The N.Y. State Department of Taxation and Finance is enjoying big savings as a result of its work with IBM in creating tools to help automate audit and collection.
Since implementing an automated compliance and audit tool in 2003, the New York State Department of Taxation and Finance has saved an estimated $1 billion and expects to gather an additional $100 million in taxes during the next three years by using the collection analysis and workflow tool.
“That’s a pretty good return on an investment of less than $10 million,” said William Comiskey, the department's deputy commissioner of tax enforcement.
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“The department has been working closely with IBM in the development of the Tax Audit and Compliance System, which is extremely successful, and the Tax Collection Optimizer,” Comiskey said. “The more data we can acquire, the more likely we will be able to identify the taxpayers who are doing the right thing and those who aren’t.”
Identifying taxpayers who are doing the right thing means fewer unnecessary audits, which is a good thing for both the department and taxpayers. Identifying those who aren’t means better collections of taxes owed.
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