Tax Liability And Deductions Verification System

• US 20120036053A1
• Filed: 10/12/2011
• Published: 02/09/2012
• Est. Priority Date: 06/11/2007
• Status: Active Grant

• Current Assignee: Miller, Chevine Arthur
• Original Assignee: Miller, Chevine Arthur
• Inventors: Miller, Chevine Arthur
• Granted Patent: US 8,825,530 B2
• Time in Patent Office: Days
• US Class Current: 705/31
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

Abstract

A computer implemented method and system for verifying tax liability and tax deductions reported by taxable entities. A tax monitoring platform comprising a database management system dynamically generates one or more tax forms specific to each taxable entity based on characteristic information of the taxable entities. The tax monitoring platform acquires tax information filled into the tax forms by the taxable entities via a user interface, extracts tax elements from the tax information, and transforms the tax elements to conform to a predetermined template. The tax monitoring platform determines an association between a first taxable entity and a second taxable entity based on the tax elements of each of the taxable entities, and compares the tax elements of the first taxable entity with the tax elements of the second taxable entity based on the association using the database management system, for determining the accuracy of reporting of tax information.

Claims

1. A computer implemented method for verifying tax liability and tax deductions reported by taxable entities, comprising:

providing a tax monitoring platform comprising a database management system for storing, managing, and retrieving information on said tax liability and said tax deductions reported by said taxable entities, wherein said tax monitoring platform is accessible by said taxable entities over a network, via a user interface provided by said tax monitoring platform;

dynamically generating one or more tax forms specific to each of said taxable entities based on characteristic information of said taxable entities, by said tax monitoring platform;

acquiring tax information filled into said dynamically generated one or more tax forms by said taxable entities, by said tax monitoring platform via said user interface and storing said acquired tax information in said database management system;

extracting tax elements from said acquired tax information by said tax monitoring platform and transforming said extracted tax elements to conform to a predetermined template defined by said database management system;

determining an association between a first of said taxable entities and a second of said taxable entities based on said extracted tax elements of each of said taxable entities by said tax monitoring platform using said database management system; and

comparing said extracted tax elements of said first of said taxable entities with said extracted tax elements of said second of said taxable entities based on said association by said tax monitoring platform using said database management system, for determining accuracy of reporting of said tax information by said taxable entities;

whereby said determination of said accuracy of said reporting of said tax information by said taxable entities verifies said tax liability and said tax deductions reported by said taxable entities.

2. The computer implemented method of claim 1, wherein said tax elements comprise one or more of a tax year, unique identification information of said taxable entities, name of each of said taxable entities, address of each of said taxable entities, income associated with each of said taxable entities, number of said second of said taxable entities associated with said first of said taxable entities, and transaction information associated with a taxable object utilized by each of said taxable entities.

3. The computer implemented method of claim 2, wherein said transaction information comprises identification information for identifying said taxable object, a start date of said utilization of said taxable object, an expected end date of said utilization of said taxable object, income earned from said taxable object, and payments rendered for utilization of said taxable object.

4. The computer implemented method of claim 1, further comprising generating a report by said tax monitoring platform based on said comparison that determines said accuracy of said reporting of said tax information and transmitting said generated report to one or more of an authorized tax entity and governing authorities.

5. The computer implemented method of claim 4, wherein said tax monitoring platform updates said generated report based on discrepancy information acquired externally from said one or more of said authorized tax authority and said governing authorities via said network.

6. The computer implemented method of claim 1, wherein one of said tax elements extracted from said tax information acquired from said first of said taxable entities is income earned by said first of said taxable entities on a taxable object owned by said first of said taxable entities, and wherein one of said tax elements extracted from said tax information acquired from said second of said taxable entities is a payment rendered by said second of said taxable entities for utilization of said taxable object.

7. The computer implemented method of claim 6, wherein said tax monitoring platform compares said income earned by said first of said taxable entities on said taxable object owned by said first of said taxable entities with said payment rendered by said second of said taxable entities for said utilization of said taxable object using said database management system, for:

verifying said rendered payment reported by each of said second of said taxable entities with said income reported by said first of said taxable entities for said each of said second of said taxable entities; and

verifying an equivalence of sum of said rendered payment reported by said each of said second of said taxable entities with a sum of said income reported by said first of said taxable entities for said each of said second of said taxable entities.

8. The computer implemented method of claim 1, wherein said acquisition of said tax information filled into said dynamically generated one or more tax forms by said taxable entities, by said tax monitoring platform via said user interface comprises acquiring one or more of number of said second of said taxable entities associated with a taxable object, identification information of each of said second of said taxable entities that contributes to income earned by said first of said taxable entities from said taxable object, relationship between said second of said taxable entities, relationship between said first of said taxable entities and said second of said taxable entities, dependency status of each of said second of said taxable entities, and payment rendered by each of said second of said taxable entities that contributes to said income earned by said first of said taxable entities, for utilization of said taxable object.

9. The computer implemented method of claim 1, wherein said comparison of said extracted tax elements of said first of said taxable entities with said extracted tax elements of said second of said taxable entities based on said association by said tax monitoring platform using said database management system identifies discrepancies in said acquired tax information.

10. The computer implemented method of claim 1, further comprising updating said acquired tax information in said database management system by said tax monitoring platform on receipt of inputs from said taxable entities about change in said characteristic information of said taxable entities via said user interface.

11. The computer implemented method of claim 1, further comprising transmitting unique identification information of said taxable entities, extracted from said acquired tax information stored in said database management system by said tax monitoring platform to a census authority via said network for enabling said census authority to perform a population count operation.

12. The computer implemented method of claim 1, further comprising identifying errors in said acquired tax information by said tax monitoring platform and notifying said taxable entities to correct said errors via said user interface.

13. The computer implemented method of claim 1, wherein said predetermined template defined by said database management system is configured for organizing said tax elements extracted from said acquired tax information of said taxable entities in said database management system, enabling said determination of said association between said first of said taxable entities and said second of said taxable entities, and performing automated retrieval of said tax elements from said database management system.

14. The computer implemented method of claim 1, further comprising retrieving said characteristic information from one or more of a plurality of third party databases by said tax monitoring platform via said network for dynamically generating said one or more tax forms specific to said each of said taxable entities.

15. The computer implemented method of claim 1, further comprising:

receiving requests for one or more tax elements extracted from said acquired tax information, from one or more governing authorities by said tax monitoring platform via said network;

retrieving said one or more tax elements from said database management system by said tax monitoring platform; and

replicating said retrieved one or more tax elements to one or more external databases associated with said one or more governing authorities by said tax monitoring platform via said network.

16. The computer implemented method of claim 15, wherein said tax monitoring platform encrypts said retrieved one or more tax elements and transmits said encrypted one or more tax elements to said one or more governing authorities via said network.

17. A computer implemented system for verifying tax liability and tax deductions reported by taxable entities, comprising:

a tax monitoring platform accessible by said taxable entities over a network, via a user interface provided by said tax monitoring platform, wherein said tax monitoring platform comprises;

a database management system that stores, manages, and retrieves information on said tax liability and said tax deductions reported by said taxable entities;

a tax form generation module that dynamically generates one or more tax forms specific to each of said taxable entities based on characteristic information of said taxable entities retrieved from a plurality of third party databases via said network;

an information acquisition module that acquires tax information filled into said dynamically generated one or more tax forms by said taxable entities via said user interface and stores said acquired tax information in said database management system;

an extraction module that extracts tax elements from said acquired tax information;

a processing module that transforms said extracted tax elements to conform to a predetermined template defined by said database management system; and

a comparison module that determines an association between a first of said taxable entities and a second of said taxable entities based on said extracted tax elements of each of said taxable entities, and compares said extracted tax elements of said first of said taxable entities with said extracted tax elements of said second of said taxable entities based on said association, using said database management system for determining accuracy of reporting of said tax information by said taxable entities to verify said tax liability and said tax deductions reported by said taxable entities.

18. The computer implemented system of claim 17, wherein said tax monitoring platform further comprises a report generation module that generates a report based on said comparison that determines said accuracy of said reporting of said tax information and transmits said generated report to one or more of an authorized tax entity and governing authorities.

19. The computer implemented system of claim 18, wherein said report generation module in communication with said information acquisition module updates said generated report based on discrepancy information acquired externally from said one or more of said authorized tax authority and said governing authorities by said information acquisition module via said network, and transmits said updated report to said one or more of said authorized tax entity and said governing authorities.

20. The computer implemented system of claim 17, wherein said extraction module extracts unique identification information of said taxable entities from said acquired tax information stored in said database management system and transmits said extracted unique identification information to a census authority via said network for enabling said census authority to perform a population count operation.

21. The computer implemented system of claim 17, wherein said comparison module compares an income earned by said first of said taxable entities on a taxable object owned by said first of said taxable entities with a payment rendered by said second of said taxable entities for utilization of said taxable object using said database management system for:

verifying said rendered payment reported by each of said second of said taxable entities with said income reported by said first of said taxable entities for said each of said second of said taxable entities; and

verifying an equivalence of sum of said rendered payment reported by said each of said second of said taxable entities with a sum of said income reported by said first of said taxable entities for said each of said second of said taxable entities.

22. The computer implemented system of claim 17, wherein said information acquisition module acquires one or more of number of said second of said taxable entities associated with a taxable object, identification information of each of said second of said taxable entities that contributes to income earned by said first of said taxable entities from said taxable object, relationship between said second of said taxable entities, relationship between said first of said taxable entities and said second of said taxable entities, dependency status of each of said second of said taxable entities, and payment rendered by each of said second of said taxable entities that contributes to said income earned by said first of said taxable entities, for utilization of said taxable object.

23. The computer implemented system of claim 17, wherein said comparison module identifies discrepancies in said acquired tax information during said comparison of said extracted tax elements of said first of said taxable entities with said extracted tax elements of said second of said taxable entities based on said association using said database management system.

24. The computer implemented system of claim 17, wherein said information acquisition module updates said tax information in said database management system on receipt of inputs from said taxable entities about change in said characteristic information of said taxable entities via said user interface.

25. The computer implemented system of claim 17, wherein said processing module, in communication with said database management system, identifies errors in said acquired tax information and notifies said taxable entities to correct said errors via said user interface.

26. The computer implemented system of claim 17, wherein said database management system configures said predetermined template for organizing said tax elements extracted from said acquired tax information of said taxable entities in said database management system, for enabling said comparison module to determine said association between said first of said taxable entities and said second of said taxable entities, and for performing automated retrieval of said tax elements from said database management system.

27. The computer implemented system of claim 17, wherein said database management system retrieves one or more tax elements extracted from said acquired tax information based on requests for said one or more tax elements from one or more governing authorities via said network, and replicates said retrieved one or more tax elements to one or more external databases associated with said one or more governing authorities via said network.

28. The computer implemented system of claim 17, wherein said tax monitoring platform further comprises an encryption module that encrypts one or more of said tax elements extracted from said acquired tax information prior to transmitting said one or more tax elements to one or more governing authorities via said network.

29. A computer program product comprising computer executable instructions embodied in a non-transitory computer readable storage medium, wherein said computer program product comprises:

a first computer program code for enabling a tax monitoring platform comprising a database management system to store, manage, and retrieve information on tax liability and tax deductions reported by a plurality of taxable entities;

a second computer program code for dynamically generating one or more tax forms specific to each of said taxable entities based on characteristic information of said taxable entities;

a third computer program code for acquiring tax information filled into said dynamically generated one or more tax forms by said taxable entities via a user interface, and storing said acquired tax information in said database management system;

a fourth computer program code for extracting tax elements from said acquired tax information and transforming said extracted tax elements to conform to a predetermined template defined by said database management system;

a fifth computer program code for determining an association between a first of said taxable entities and a second of said taxable entities based on said extracted tax elements of each of said taxable entities using said database management system; and

a sixth computer program code for comparing said extracted tax elements of said first of said taxable entities with said extracted tax elements of said second of said taxable entities based on said association using said database management system, for determining accuracy of reporting of said tax information by said taxable entities.