J&B Software Helps Idaho State Tax Commission Recover More Than $750,000 in Deficient Taxes
Intelligent Document Recognition Technology Improves Efficiency and Increases Revenue with Rapid Return on Investment
Blue Bell, PA (PRWEB) August 2, 2010
J&B Software (http://www. jbsoftware. com/), a premier provider of enterprise-wide transaction and payment solutions, has helped the Idaho State Tax Commission (ISTC) recover more than $750,000 in deficient taxes over the past two years. The underpayments were discovered by comparing and analyzing tax filing data, filed electronically and through paper returns. J&B's Intelligent Document Recognition (http://www. jbsoftware. com/primary-solutions/intelligent-document-recognition. php) (IDR) solution was used to capture the data from individual tax returns and the employer wage and withholding information.
Generally, these tax deficiencies fall into one of three categories. The most familiar is when individuals, perhaps as part of a larger, organized effort, submit falsified W-2s that claim withholdings higher than what employers actually take from their paychecks. Or sometimes companies will under-report to the government the withholdings shown on their employees' W-2s in an attempt to pocket the difference. In other cases, "phantom" employers withhold taxes from paychecks, but never register their business or pay any withholdings to the government. In all of these cases, the perpetrators are taking advantage of the difficulty governments have in effectively reconciling the employee and employer W-2s submitted on paper.
J&B's public sector solutions (http://www. jbsoftware. com/industry-packages/public-sector. php) leverage IDR technology to quickly and automatically capture, classify and recognize documents such as tax returns, W-2s, 1099s, schedules and correspondence. Once J&B's solution captures and recognizes a document, it extracts data elements, associates the remittance with its related line-item detail and balances the transaction. As a result, the ISTC is experiencing improved availability of funds, lower operational and deposit costs, reduced errors and minimized fraud risk.
"As states continue to battle a challenging economic climate, efficient tax and revenue processing is critical," said Doreen Warren, division administrator, Idaho State Tax Commission. "Better matching of W-2s and tax filings is an efficient way to generate more revenue without raising taxes or otherwise burdening citizens. This project's return on investment has exceeded our expectations."
The ability to match withholding information from an employee income tax return to the employer wage and withholding information submitted by employers is long overdue. The Internal Revenue Service and the Social Security Administration do not have an approved plan for consolidated electronic reporting of wage and withholding information at the state level. Traditionally, this forced states to choose between doing nothing or to conduct arduous, costly, time-consuming manual sorting and data entry activities.
"Governments around the world are looking for ways to increase efficiency, lower costs and realize untapped revenues," said Jim McShea, the chief revenue officer for J&B Software and its parent company, 3i Infotech, North America. "We're helping them meet those objectives with a full suite of products and services that streamline and automate processes that have traditionally been inefficient and labor-intensive."
In a related development, J&B was named the most commonly identified application software in the recently completed 2010 Government Payments and Document Automation Benchmarking Study (http://www. tawpi. org/research/government-processing-study. aspx), a collaborative effort between TAWPI (The Association for Work Process Improvement), IAPP (International Accounts Payable Professionals), FTA (Federation of Tax Administrators) and corporate sponsors.
Additionally, J&B is exhibiting at the 2010 FTA Technology Conference and Exhibition, which is being held through Wednesday at the Grand Hyatt Buckhead in Atlanta. The event focuses on technologies that enable improvements in tax administration. Laurie Hunter-Manning, a J&B account executive, will join representatives of ibml and Fairfax Imaging for an interactive roundtable discussion on payments and document automation technology trends in the government space. The August 3 panel will also focus on the results of the aforementioned 2010 Government Payments and Document Automation Benchmarking Study.
About J&B Software
J&B Software provides payment processing, imaging, electronic content management and capture solutions to businesses worldwide. The company works with over 160 industry leading organizations including regional and money center banks, insurance companies, mutual funds, credit card processors, brokerage, telecom, utilities, government, non-profit and commercial organizations. J&B Software's library of core applications and product modules utilize open architecture software and hardware platforms. The company's extensive application suite includes solutions for retail/wholesale lockbox, remote image capture, ARC/Check 21 electronic clearing, intelligent document recognition, healthcare EOB processing, full-page document management, transaction archive and online customer query. J&B Software is a winner of the TAWPI Hall of Fame Award for technology innovation and excellence and its 400+ employees are fully committed to improving the operational effectiveness and profitability of its clients.
J&B Software is a subsidiary of 3i Infotech. For more information, visit www. JBSoftware. com or call 215-641-1500.
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