IRS Offshore Compliance Initiative

KeyLogic helped the IRS collect more than $75 million in taxable income that was being illegally sheltered in tax-haven countries—and identify more than $90 billion in additional liabilities.

Helping the IRS Get ROI That Counts

The Client: As part of the U.S. Department of the Treasury, The Internal Revenue Service administers the tax laws of the United States.

The Challenge: To dramatically modernize a core business process designed to identify citizens who were evading income taxes by illegally using offshore bank accounts.

The Solution: KeyLogic helped IRS staff members move from performing one-by-one analyses of individual database records to letting advanced data-mining tools do much of the work. As part of the Offshore Compliance Initiative, the agency’s investigators provided the forensic expertise, while our experienced professionals developed algorithms to automate and accelerate lead identification.

The Result: As a result of this collaboration with KeyLogic, the IRS has identified and acted upon thousands of relevant leads extracted from hundreds of millions of often complex financial records. The benefits to the IRS include:

  • Increased Mission Effectiveness. Our work helped the agency collect more than $75 million in taxable income that was being illegally sheltered in tax-haven countries — and identify more than $90 billion in additional liabilities.
  • Improved Process Efficiency. The implementation of automated tools resulted in a massive savings of person-hours, as agency staff members were able to search large volumes of financial records much more quickly than before.
  • An Over 3,500-Percent Return. Approximately, 1,300 taxpayers who learned of the program stepped forward and paid tens of millions of dollars in taxes, generating a massive return on the IRS’s $2 million investment in the voluntary compliance initiative.

To learn more about how KeyLogic can help your agency efficiently uncover and act upon mission-critical information, please contact us today at 888.204.9649.

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