NY turns $10 million investment into $1 billion in savings

Automated analysis tools pay big dividends for state tax collectors

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.


Related story:

Tax evaders beware: NY state has an app for that


The savings were generated through a partnership with IBM to develop the tools that Comiskey said are needed for his department to run efficiently. Tax administration requires considerable investment in technology, analytics and predictive software, he said.

“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.

About the Author

William Jackson is a Maryland-based freelance writer.

The Fed 100

Save the date for 28th annual Federal 100 Awards Gala.

Featured

  • computer network

    How Einstein changes the way government does business

    The Department of Commerce is revising its confidentiality agreement for statistical data survey respondents to reflect the fact that the Department of Homeland Security could see some of that data if it is captured by the Einstein system.

  • Defense Secretary Jim Mattis. Army photo by Monica King. Jan. 26, 2017.

    Mattis mulls consolidation in IT, cyber

    In a Feb. 17 memo, Defense Secretary Jim Mattis told senior leadership to establish teams to look for duplication across the armed services in business operations, including in IT and cybersecurity.

  • Image from Shutterstock.com

    DHS vague on rules for election aid, say states

    State election officials had more questions than answers after a Department of Homeland Security presentation on the designation of election systems as critical U.S. infrastructure.

  • Org Chart Stock Art - Shutterstock

    How the hiring freeze targets millennials

    The government desperately needs younger talent to replace an aging workforce, and experts say that a freeze on hiring doesn't help.

  • Shutterstock image: healthcare digital interface.

    VA moves ahead with homegrown scheduling IT

    The Department of Veterans Affairs will test an internally developed scheduling module at primary care sites nationwide to see if it's ready to service the entire agency.

  • Shutterstock images (honglouwawa & 0beron): Bitcoin image overlay replaced with a dollar sign on a hardware circuit.

    MGT Act poised for a comeback

    After missing in the last Congress, drafters of a bill to encourage cloud adoption are looking for a new plan.

Reader comments

Fri, May 28, 2010 Satisfied Taxpayer Brooklyn NYC

I got notice from NYS Taxation & Finance that there was error on my Personal Income Tax Return. Refund was $11 more than I claimed because of my computational error. These systems work for taxpayers too!

Thu, May 13, 2010

Agree with 1st comment. 2nd is dumb. If the laws are such that the taxes are owed and have been billed, they should be collected. If you don't like the amount, work on changing the legislation. To just accept that some people aren't going to pay and not take effective steps to collect it is penalizing the ones that are paying.

Thu, May 13, 2010 Tea Partier 2

Great to see a government entity being more efficient and effective. Now, when will they lower taxes since they are being so efficient?

Wed, May 12, 2010 Tea Partier

Typical government think: More tax taken from the private sector is a "savings".

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

More from 1105 Public Sector Media Group