For Immediate Release
Date: August 10, 2005
Contact: Maura Browning
Phone: (573) 751-8222

Department Using Technology to Crack Down on Tax Evaders

        JEFFERSON CITY – Today, the Missouri Department of Revenue announced a new technology-based approach to improving tax compliance among the state's taxpayers.  Using “data warehousing,” the department has begun matching data from a number of outside sources to the department's internal data to identify businesses and individuals who are either not properly registered, not filing, or not correctly reporting their tax liabilities. 

        The data warehouse, known as the Tax Compliance System, will be used for analyzing data to detect non-compliance in all major tax areas, including Corporation Income and Franchise Tax, Sales and Vendor Use Tax, Consumer Use Tax and Individual Income Tax.  Both resident and non-resident individuals and companies will be identified. Once identified, taxpayers believed to be not in compliance will be contacted, the proper tax liability will be determined, and the taxpayer will be required to pay the amounts owed along with statutory penalties and interest.

        “We want to be fair to all Missouri taxpayers, and we must do our best to find those who should be paying tax but are not,” said department director Trish Vincent.  “I am pleased that we are employing technology to crack down on people and businesses who aren’t paying their fair share of state tax.”
 
        The new process will be much more accurate than previously used techniques in discovering non-compliance that in some cases may span several years. 

        The department selected a national vendor as its business partner in designing and implementing this system.  This vendor has successfully helped other states improve compliance and bring in previously unreported revenue.

        Anyone with an unreported tax liability who wishes to report and pay that liability before receiving notification from the department may call (573) 751-8612.  By voluntarily paying the tax owed the interest charges stop accruing as of the date of payment.  The department will also waive the penalty for those who voluntarily pay prior to being notified by the department.