Enterprise crowdsourcing has become one of the best ways to ensure that the tax payers are all filing their returns lawfully. Although the system has not been integrated as per official records, the system has the potential to alleviate tax gap that flows as unaccounted income.
The Tax Gap
When tax season comes around, a lot of snippets about how there are numerous defaulters who do not remit taxes on income float freely around. Closing the gap and ensuring a consistency amidst the tax expected and received has been a long standing issue for governments across the world.
Data management solutions from Lionbridge is a use of enterprise crowdsourcing and technology to capture big data and also process the information. The data can help close the tax gap and help the Governments recoup lost tax returns.
The tax gap can be substantial and instrumental in the economy stabilization of a country. For example, the IRS according to the US Department of Treasury collects nearly $2.4 trillion over the period of a tax year. The number of people paying taxes are pinned at nearly 234 million.
Of the entire number of tax returns, nearly 35 million people file returns through paper. Further, the tax gap according to the IRS is $385 billion. This gap arises from under reporting, non-filing and under payment.
Analyzing the paper returns to glean the defaulters seems to be a matter of intensive manual labor and exorbitant costs. Simplifying this data analysis is where enterprise crowdsourcing plays a key role.
Big data capture
Despite use of manual labor and recognition software to analyze tax returns, the data set was partial at best. The data management solution put forth by Lionbridge will solve the issue while utilizing a combination of manual labor and software that is optimized.
Through the data management solution, governments can convert tax forms into electronic data and perform a thorough analysis on the data thus made available.
The big data analytics empowered by Lionbridge allows an analysis of the data to prevent fraud and defaulting. The government can therefore earn billions of dollars in rightful revenue.
While analyzing records belonging to tax payers, sensitive information regarding the tax payers will be made available to the software and the technical talent in charge of running the software. Security issues, concerns over the safety of the tax payer’s information and matters of national security come into play. Companies entrusted with big data capture and analysis therefore need to employ security measures above and beyond the norm for data analytics.
Lionbridge has proposed a technology enabled, unique solution that ensures the security of personal tax information. The technology they propose will scramble the information into snippets that will be sent for analysis outside of the client’s facilities. The snippets of information are non-contextual further increasing security. This breaking up of information takes place within the client’s premises to ensure maximum protection of data.
A handpicked team of data conversion specialists will then work to capture data and confirm the data. Once the data has been captured and confirmed, the scrambled data will then be sent back to the client. Within the clients firewall protection, the data will be reassembled to make sense of the data capture and confirmation. Since the data never leaves the client’s premises without being scrambled, the security of the information is intact.
Crowdsourcing to analyze the tax data might just be the best possible route to ensuring that governments receive their due taxes. Whether the governments will adopt the technology and crunch down on defaulters is a matter that can only be speculated by the citizens till a stand is announced.