Weekly Round-Up: Fighting Tax Fraud with Technology


This week’s issue of the Bloomberg BNA Weekly State Tax Report features a Q&A with Andrew Schaufele, Director of the Bureau of Revenue Estimates for the Maryland Comptroller’s Office. In his interview, Schaufele discusses the factors that lead to tax fraud, and details Maryland’s use of data analytics in its fight against fraudulent returns.

In evaluating tax returns for fraud, the Maryland Bureau of Revenue Estimates “use[s] available information to create several statistical applications which work together to provide a probability of fraud for every return processed,” Schaufele says. Returns that score above a certain threshold are then analyzed to determine whether they are indeed fraudulent. 

Other highlights from the 4/15/16 issue of the Weekly State Tax Report:

  • States Give Group Shrug to Panama Papers
  • Reaching for Revenue Offshore, States Push Tax Haven Laws
  • MTC Work Group Fleshing Out Approach for Zero Receipts
  • Vehicle-Miles-Traveled Tax May Be on Its Way to Illinois
  • Michigan Treasury Department Won't Appeal MTC Ruling  

Some notable developments from the State Tax Developments Tracker–Bloomberg BNA’s tool for monitoring important developments in all the states:

  • Florida Legislature Enacts Law to Provide for Various Tax Reductions and Modifications, and Improve Tax Administration
  • Texas Comptroller of Public Accounts Allows Partial Adjustment to Franchise Tax Assessment as Taxpayer Proves Certain Affiliates not Includable on Combined Group Return
  • Virginia General Assembly Amends Law Providing Retail Sales and Use Tax Exemption for Beer-Making Equipment and Materials
  • Louisiana Department of Revenue Issues Revenue Information Bulletin Clarifying Legislative Intent on 28% Reduction to the Net Operating Loss Deduction
  • California State Board of Equalization Proposes to Adopt Rule Concerning Wholesale Cost of Tobacco Products

For more information about this and other state tax issues, sign up for a free trial of the Bloomberg BNA Premier State Tax Library.

In other developments…  

State Tax Quarterly Insights: January - March 2016, by KPMG

Tax Freedom Day 2016 is April 24, by Tax Foundation

Compiled by Lauren Colandreo and Melissa Fernley