Products & Solutions / Tax Audits

SAS® for Government Tax Audits

Effectively identify and prioritize tax returns for audit

SAS for Government Tax Audits applies powerful analytic techniques to accurately screen all tax filings and rank them by the likelihood of underreporting, magnitude of revenue to be collected and expected cost per audit. With these insights, auditors can focus on the most valuable cases to minimize lost tax revenue.

Benefits

  • Reduce tax avoidance and tax evasion.
  • Better identify audit cases.
  • Use auditor time more effectively.
  • Improve audit results.
  • Adjust priorities to match available resources.

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Features

  • Automatically rank likelihood of underpayment.
  • Audit risk replacement scoring.
  • Audit risk augmentation scoring.
  • Audit magnitude scoring.

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How SAS® Is Different

Only SAS’ analytically based modeling approach:

  • Delivers analytically derived scores that pinpoint and prioritize exactly where audit efforts will be most productive.
  • Combines three distinct analytic models and learning styles to assign scores to selected returns, based on past trends, present anomalies and the potential magnitude of collections.
  • Is delivered by SAS developing and maintaining all elements of the solution, so you do not have to worry about the integration issues common with proprietary niche solutions.
  • Is built on the SAS Business Analytics Framework and integrates with other SAS solutions, including SAS for Government Tax Collections and the SAS Fraud Framework for Government.

Benefits

  • Reduce tax avoidance and tax evasion. The difference between what taxpayers owe and what they actually pay in local, state and federal taxes represents billions of dollars of uncollected revenue that could support vital public services and significantly reduce budget deficits without increasing taxes and fees for citizens.
  • Better identify audit cases. SAS advanced analytical models look not only at the characteristics of a return or a population, but also identify subtle relationships and anomalies among thousands of variables so you can more accurately identify cases for review.
  • Use auditor time more effectively. Analytically driven scoring makes it clear which returns are likely to result in the highest revenue gains and should be prioritized for action, without requiring audit teams to be versed in the underlying statistical techniques.
  • Improve audit results. In preliminary audit tests, SAS Analytics and scoring have delivered significantly better detection rates than legacy rules-based systems – improving audit success by as much as 20 to 50 percent.
  • Adjust priorities to match available resources. By ranking cases based on value, available audit resources are maximized to focus on the highest value cases: auditors can allocate more time to reviewing the detection results and when bandwidth constraints surface, auditors can turn their focus to the highest-value cases. Readjusting an auditor’s time for greater efficiencies provides a significantly greater return per auditor without having to increase staff.

Features

Automatically rank likelihood of underpayment.
SAS uses sophisticated modeling and self-learning techniques to identify tax returns with a high likelihood of underreporting and a high magnitude of potential collections. Use the combination of three scores with other tax filer characteristics to devise your final audit strategies that will render the highest payback potential.
Audit risk replacement scoring.
An audit risk replacement (ARR) score identifies and ranks tax underfilers based on attributes similar to other underfilers who have been successfully audited in the past, and is based upon a semisupervised learning methodology.
Audit risk augmentation scoring.
An audit risk augmentation (ARA) score identifies and ranks the potential risk in unusual tax returns, such as returns where fields were out of normal range or internally inconsistent, and is based upon an unsupervised learning methodology.
Audit magnitude scoring.
An audit magnitude (AM) score identifies anomalous behavior and ranks the returns by the magnitude of the potential underpayment, to better enable decisions such as conducting office or field audits.

Ready to learn more?

Call us at 1-800-727-0025 (US and Canada) or request more information.