Data Transformation
Internal and external data sources are recorded with appropriate contact, security, retention and file characteristics. An embedded Extract, Transform and Load (ETL) tool is used to map the external data source layout to DiscoverTax®’s standard format. ETL maps are reusable and can be easily modified when future data source releases (e.g., next tax year) include new data fields. The transformation process handles data parsing, consolidation, format changes, edits, record filtration and address standardization and verification using a “point and click” user interface. Upon completion, the source is ready for the warehouse build process.

RSI’s “Compliance Library” contains a host of potential government and private sector data sources listing possible uses, contact information and predefined data transformation maps. Many of the most commonly identified data source mappings (e.g., IRS data sources) have already been defined and tested, reducing the time it takes to load your data warehouse and begin realizing benefits.

Warehouse Build
DiscoverTax®’s advanced matching and load process, called Associate and Grow (A&G), builds the warehouse by accurately constructing comprehensive business and individual portfolios. The A&G process matches external data to existing taxpayer portfolios initially created by loading your tax system(s) data. If the process detects a match, it “associates” the external data to the taxpayer, building a more complete portfolio. If a match is not determined, the process “grows” the data warehouse by adding the external data as a new business or individual portfolio. An online function is also provided to research and resolve undetermined matches.

The A&G process utilizes numerous matching algorithms including exact ID, transposed ID and standardized name and address matching (including phonetic matches, partial matches and alpha checks), as well as, matches of telephone number, date of birth and much more. The match keys and rules are configured online for each external data source and new match keys can easily be added. A match rule “wizard” quickly supports match rule definition for a new data source. RSI’s extensive experience with various sources of data is imbedded in several “best practices” configurations of match keys that can be used as a safe starting point for most sources.

Data Warehouse Inquiry
Data Warehouse Inquiry provides complete access to information within the data warehouse via a browser-based user interface. Through search windows, users can find taxpayers by using combinations of exact, partial, and wildcard searches. All information stored in a taxpayer portfolio, including demographics, income, returns, payments and assets, is viewable using the Data Warehouse Inquiry windows. Imagine a non-filer calling your agency to dispute a bill and your taxpayer service representative, empowered with this data online, reminds the taxpayer of past employment, unreported 1099 income or use tax due on imports of luxury items.

DiscoverTax® also provides a configurator to determine the best ID, name and address to use for display and noticing, and also allows for all IDs, names and addresses to be shown and cross-referenced to the data source. In addition, the relational structure of the data warehouse design allows for ad hoc reports to be easily developed via DiscoverTax®’s Selection Builder or any third party SQL builder.

System Utilities
DiscoverTax® provides the capability to configure the solution for your agency’s specific tax requirements, policies and compliance program needs. User security definition, system codes and parameters, messages, offline processing, tax calculation business rules, audit scores, case flows and match keys can be defined through this component. The System Utilities component also provides configuration of user ids and passwords to enable complete tracking of every touch to the system, meeting IRS guidelines. By driving processing through the use of configurable parameters and business rules, system changes are simplified, therefore lowering system maintenance and enhancement costs and reducing implementation time.

Decision Support, Risk Analysis, Scoring & Lead Selection
To increase effectiveness of compliance initiatives, DiscoverTax® provides Decision Support functionality to aid in the selection of discovery, audit and collection leads. Taxpayer portfolios can be scored using configurable business rules or predictive model score cards to determine specific taxpayer compliance risk, such as probability of non-payment within six months or of under-reporting. Tax calculation formulas can also be defined, and each taxpayer’s proposed assessment computed, for non-filers and under-reporter cases.

Once scored, the DiscoverTax® Selection Builder identifies leads based on taxpayer portfolio scores as well as any other attributes in the warehouse. An unlimited number of risk analysis scores can be created and defined; and, an unlimited number of lead selections/queries can be saved and reused. Selected leads can be viewed online and interfaced into the DiscoverTax® Case Manager or passed to the agency’s legacy case management system for follow-up action.

Business Intelligence-Data Mining, OLAP and Ad Hoc Reporting
Building a DiscoverTax® data warehouse complete with business and individual taxpayer portfolios (which contain demographics, tax returns, income information, assets and other taxpayer information), will enable your agency to realize the full benefits of using Business Intelligence tools. Leading edge data mining, OLAP and ad hoc reporting technologies can be integrated to enhance data analysis and reporting capabilities and increase the overall effectiveness of your compliance initiatives.

Data mining technology can be used to “mine” data in the warehouse to develop predictive models for improved collections case treatment and audit selection, based on agency specific data and historical results. Using OLAP technology, online users can view summary data or drill down and explore the vast amounts of information stored in the data warehouse. For example, users might analyze compliance by geographic area and industry code or select all taxpayers where employer W-2 data does not match employee withholding claimed. OLAP and ad hoc reporting tools are also widely used for enhanced management reporting, such as reports for measuring the benefits of a compliance program or a taxpayer education outreach initiative. The goal to use Decision Analytics to support all audit and collection functions is becoming a reality.

Collections Workbench
Collections Workbench provides case management functions tailored specifically for collectors and management. Providing detailed status of all “in-progress” cases, the electronic case folder contains the complete contents of the case including taxpayer history, financials and assets. Collectors may issue/release a lien or levy, establish payment plans or move periods to the bankruptcy management process. All case log entries and case details are maintained in the case folder and can be reviewed online by authorized staff. Several utilities are provided for managing work across the department, including case assignment, workflow, messaging, approval rules, next steps, case closure types, appointment tracking and time recording.

Taxpayer data and worksheet templates are accessed centrally or in the field (using the check-out/check-in facility), which provides a flexible environment for increasing auditor productivity and audit accuracy. Audit managers can better administer audits, track audit performance and obtain needed reports. Audit Workbench includes a time and expense management component, allowing auditors to track time spent by task for each audit. Additional capabilities support two-way synchronization of taxpayer and audit information, capturing of audit notes and file attachments, and messaging which allows field auditors to communicate with audit supervisors about specific audits. Audit Workbench can also be integrated with an agency’s existing standalone field audit laptop application.

Field Audit Application
TaxMaster® is a comprehensive audit laptop application to support the field auditor which includes initial and ongoing taxpayer correspondence, importing of taxpayer files and records, statistical sampling reports, capturing taxpayer transaction files and preparing standardized audit work papers for all tax types. The resulting working papers can be printed for the taxpayer and/or uploaded to the legacy tax application along with the final assessment. Highly configurable, TaxMaster® captures your agency’s business rules for each administered tax type, audit reporting requirements, taxing jurisdictions (for local sales tax) and historical rate tables during the initial setup. This allows the software to be easily configured to match any state or local tax structure. TaxMaster® can be a stand-alone application or integrated with RSI’s Audit Workbench.

Case Manager
DiscoverTax®’s full feature Case Manager administers the process of creating and tracking cases, such as non-compliant leads. Cases can be automatically created or created manually upon user request from the lead selection process. Offline processes manage the configurable case workflow based on triggered events or case attributes, such as elapsed time, taxpayer status and dollar amount. Automated actions might include case assignments, case routings, notice mailings or case closure. Each case file includes a complete history of user assignments, case status, case actions, contacts and case notes. Users can easily define new case types or modify case workflow through the configurable case workflow management facility.

The DiscoverTax® Case Manager provides agencies a robust case management system and integrated tool for case processing for all case types/sub-types (e.g., desk audit – CP2000). For agencies with existing case workflow applications, the Case Manager provides a flexible tool to pilot new compliance initiatives that may not fit the current system’s case structure or requires IT resources to modify the production systems.

Correspondence Manager
module to the Case Manager. The Correspondence Manager allows user-defined notices to be integrated as actions in the case workflow. It uses familiar Microsoft Word® templates to define notices, letters and other mailings to be automatically requested by the Case Manager or manually by a user. It also supports viewing and reprinting of previously issued notices to assist in the resolution of taxpayer notice inquiries.

The Correspondence Manager enables an agency to quickly define notices for a new compliance initiative. This feature is particularly helpful for new desk and field audits where the agency may select a limited number of audit candidates who require a tailored letter.

DiscoverTax® Technical Infrastructure
DiscoverTax® is an open, scaleable solution that utilizes open design and development principles such as Service Oriented Architecture (SOA), APIs, N-tier architecture and JDBC. Technical and Product Support highlights include: