Tax Refund Investigative Solution

Detect tax refund fraud, combat identity fraud and boost revenue

Detect tax refund fraud, combat identity fraud and boost tax revenue within your jurisdiction. Federal and state governments lose up to millions of dollars each year from tax refund fraud because they do not have access to the public records, identity-based filters, and data analysis needed to detect fraud. LexisNexis® Tax Refund Investigative Solution helps solve these problems. With billions of current identity records collected from thousands of accurate and reliable sources, LexisNexis Tax Refund Investigative Solution quickly screens tax refund requests for potential fraud. Our proven identity authentication tools bundled with advanced linking and analytics capabilities help agencies detect fraudulent claims tied to tax refund requests and identify potentially millions of dollars in lost revenue in taxes, as well as help create new revenue sources for years to come.

Detect Fraudulent Tax Activity: Power of Public Records

For government agencies to find fraud before it happens, they must be able to access records across city, county, and state boundaries. With LexisNexis Tax Refund Investigative Solution, agencies can now access billions of public record sources to establish identity-based filters, rather than only depending on the rules and records maintained by the agency. These additional filters provide a comprehensive picture or legacy view of the taxpayer's identity in order to help detect fraud.

Our proven solution, used by several states including Georgia and Louisiana, has shown successful results. By leveraging the Tax Refund Investigative Solution, states have been able to increase their operational efficiencies and effectiveness within their programs and preserve revenue for their jurisdictions. Georgia is one of the states that has been using this approach for two years and has seen a dramatic decrease in the amount of fraud it needs to block (i.e., $23M in refunds blocked for calendar year 2012 and $7M blocked in calendar year 2013). The state attributes the decrease to its advanced detection capabilities through its internal rules bundled with the LexisNexis solution, as well as the fact that fraudsters are now filing in other states because they know Georgia is doing such a great job fighting fraud.

The LexisNexis Tax Refund Investigative Solution is a powerful yet simple way for agencies to screen and verify tax refund requests by leveraging identity-based filters to help uncover areas that rules-based filters could not, including:

  • Individuals that are deceased
  • Social Security Numbers that are altered to elude "Do Not Pay Lists"
  • Individuals not associated with their given address
  • Individuals not associated with their given Social Security Number
  • Identities not found in public-records searches
  • Individuals incarcerated in prisons

With a minimum of at least one million filings and an average tax refund of $300-$500, states may be paying out $25 million or more in fraudulent claims. With the value of public records and identity-based filters, the federal government and states can finally combat the growing rate of tax refund fraud.

Detect Tax Fraud and Boost Revenue vs. Lose Revenue and Raise Taxes

Tax Refund fraud methods and schemes are plentiful and diverse. Fraudsters may commit identity fraud by stealing or creating a Social Security number (SSN), falsifying W-2 information or fraudulently applying for a tax refund. Once individuals commit identity fraud tied to a tax refund request, there is a high probability that they will do it again and again. Unfortunately, the criminals usually get away with tax refund fraud or it often goes undetected because most state and federal government agencies do not have access to the resources necessary to investigate, they do not leverage the necessary data to detect fraudulent requests and they are afraid that due diligence and fraud prevention on tax refunds would delay the issuing of the refund checks. Over time the cost of tax refund fraud can add up to millions of dollars in lost revenue and result in tax increases that law-abiding residents have to pay. LexisNexis Tax Refund Investigative Solution can help agencies detect fraud and – in a tough economy – boost revenue by potentially millions of dollars by identifying fraudsters, rather than raising taxes.

Get it now: for more information about Tax Refund Investigative Solution, please call (866) 528-0778.

Detect Fraudulent Tax Activity

Cases of taxpayer identity theft continue to be a growing concern. This disconcerting trend not only hurts the citizen, whose information and refund has been stolen—it diverts resources away from serving citizens. Federal, state and local employees expend valuable time working with citizens to resolve the issue and recoup the refund.

LexisNexis Tax Refund Investigative Solution is a powerful yet simple way for government tax agencies to screen and verify refund requests and prevent the issuing of checks for fraudulent claims.

Stopping Tax Refund Fraud

LexisNexis Tax Refund Investigative Solution quickly screens tax refund requests against billions of current LexisNexis® identity records collected from thousands of accurate and reliable sources. Our proven identity authentication tools confirm that submitted refund data is valid and use advanced linking and analytics capabilities to verify that the various data pieces are accurate.

Precision Authentication

If a returned record is flagged with a fraud indicator, the suspicious individual will have to answer a series of identity authentication questions that may request highly personalized information, such as: familial relationships, former residences, vehicles and similar information. The intuitive question sets are easy for consumers to verify and virtually impossible for fraudsters to answer. Plus, the question sets are fully customizable for adaptation to your risk policies, procedures and requirements. LexisNexis® Instant Authentication questions are seamlessly integrated into the tax agency’s website using an XML feed to support the existing website user interface.

Key Indicators Isolate and Flag Tax Refund Requests that are Suspicious

Common fraud indicators flag and stop potential fraudulent issuance of refund checks by isolating the following:

  • SSN provided is reported as deceased
  • SSN provided was issued prior to the input date of birth
  • Address used matches a prison address
  • SSN provided is invalid or not yet issued
  • Last name used is not associated with the SSN provided
  • SSN provided is recently issued
  • Multiple identities are associated with the SSN provided

Accurate and Comprehensive Data

Comprehensive public and proprietary databases guarantee the most accurate and up-to-date information.

Our Revenue Discovery Solution Consultants Understand Your Agency

Dedicated LexisNexis Revenue Discovery Solution consultants are specialists in the collections processes, so you’re assured of solutions best suited to fit your agency's needs. From custom solution development through implementation and beyond, your solution consultant is at your side. And knowing you have the right party contact information–right out of the gate–instills confidence in dialing, mailing and alternative contact strategies. Read more about the benefits of our Revenue Discovery Solution.

Get it now: for more information about Tax Refund Investigative Solution, please call (866) 528-0778.

Literature

  1. LexisNexis® Tax Refund Investigative Solution
  2. The Power of Public Records: Prevent Tax Refund Fraud and Boost Tax Revenue
Get it now: for more information about Tax Refund Investigative Solution, please call (866) 528-0778.

Contact Us

For more information about our solutions call (866) 528-0778 or contact us online

The information found in the Tax Refund Investigative Solution is not a consumer report (as defined in the Fair Credit Reporting Act (FCRA)) and may not be used for any purpose permitted by the FCRA. LexisNexis and the Knowledge Burst logo are registered trademarks of Reed Elsevier Properties Inc., used under license. Other products and services may be trademarks or registered trademarks of their respective companies.

Due to the nature of the origin of public record information, the public records and commercially available data sources used in reports may contain errors. Source data is sometimes reported or entered inaccurately, processed poorly or incorrectly, and is generally not free from defect. This product or service aggregates and reports data, as provided by the public records and commercially available data sources, and is not the source of the data, nor is it a comprehensive compilation of the data. Before relying on any data, it should be independently verified.

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