Tax Fraud Discovery

Reduce tax fraud, uncover new revenue sources and increase public confidence with identity analytics.

The Power of Identity Analytics: Detect and Prevent Tax Refund Fraud and Uncover New Revenue Sources

Increasing budgetary constraints put pressure on government agencies to find new revenue sources and prevent tax fraud. In a 2012 report, the Treasury Inspector General for Tax Administration (TIGTA) found that billions of taxpayer dollars are being paid to fraudsters unnecessarily due to identity theft. The problem also is occurring at the state level, where criminals use fake identities to request billions in tax refunds in the 43 states with an income tax.

In today’s digital age, the ability to file electronically has made it easier for taxpayers to submit their returns. Unfortunately, as a result of electronic filing, organized criminal groups are now able to file fraudulent refunds in mass quantities. With LexisNexis® Tax Refund Investigative Solution, revenue agencies can take a new proactive approach to the problem of identity theft in tax administration at the same time help protect taxpayers’ identities. Watch this video to learn more.

LexisNexis patented technology provided by the LexisNexis Tax Refund Investigative Solution gets to the root of the identity theft problem by focusing on identities. Several states are using the patented LexisNexis technology and have stopped hundreds of millions of tax refund identity fraud. If more revenue agencies avail themselves of this newly patented technology, the ‘pay and chase’ approach to fighting identity theft-related tax refund fraud can be a thing of the past.

  • A Star Press, March 2014 article cites LexisNexis as the database used to verify 95 percent of the identity data on individual income tax returns in Indiana, which has helped identify about 1,500 identity tax fraud cases and stop $1.5 million in fraud.

  • Since signing up for the LexisNexis service ahead of the 2012 tax season, Louisiana has avoided $5 million to $7 million in tax losses a year, according to Jarrod Coniglio, chief of staff for the state’s Department of Revenue.

  • Georgia started using LexisNexis® for the 2011 filing season. It paid $3 million to filter all of its returns, and the LexisNexis® system caught $25 million worth of fraudulent refunds.

When it comes to choosing information sources, current and accurate identity information is critical. LexisNexis® Revenue Discovery Solutions draw from over 10,000 sources of public records to maintain a master identity repository that contains over 400 million unique domestic identities. Leverage one of the largest collections of identifying information in the U.S.—improving visibility across state lines—and greatly increase your chances of discovering fraudsters, non-filers and under-reporters, discovering needed revenue.

LexisNexis is a trusted leader in information security and privacy, providing comprehensive, authoritative and reliable information for effective decision-making. LexisNexis provides a secure and reliable environment where proprietary information is protected.

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