Computer-based system, computer program product and method for recovering tax revenue

• US 6,016,479 A
• Filed: 05/14/1998
• Issued: 01/18/2000
• Est. Priority Date: 02/10/1998
• Status: Expired due to Term

• Current Assignee: Interstate Solutions LLC
• Original Assignee: Interstate Solutions LLC
• Inventors: Taricani, Jr., Joseph F.
• Primary Examiner(s): Voeltz, Emanuel Todd
• Assistant Examiner(s): Alvarez, Raquel
• Application Number:
  US09/078,616
• Time in Patent Office: 614 Days
• Field of Search: 705/16, 705/17, 705/19, 705/26, 705/30, 705/31, 380/24
• US Class Current: 705/19
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/207 Tax processing
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0641 Shopping interfaces
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

Abstract

An effective and efficient system for recovering tax revenue. One implementation is to recover tax revenue currently not being recovered by storing data in a database indicating interstate sales transactions on which a seller does not collect a designated tax, such as a sales tax. This database is part of a computer network which organizes and stores the data in the database and automatically sends out tax due notices to purchasers when data in the database indicates that an interstate sale has taken place and no designated tax has been collected from the purchaser by the seller. This database can also be updated to reflect payment of the tax indicated in the tax due notice, and can automatically remit appropriate revenues to a revenue agency when the tax due notice has been paid. One implementation is also collecting a simplified tax on all interstate sales transactions, and then storing data in a database indicating this collected simplified tax and data as to a revenue agency entitled to the tax based on the purchaser, the state of residence of the purchaser, etc. Based on this data in the database, the collected simplified taxes can be proportioned and routed to the appropriate revenue agency.

Claims

1. A computer-implemented method of recovering tax revenue for multiple jurisdictions, comprising the steps of:

populating a database hosted on a computer-readable medium with data of interstate sales transactions made by respective purchasers from the multiple jurisdictions for which no designated tax has been paid; and

sending a tax due notice to one of the respective purchasers based on the data of the sales transactions stored in the database.

2. A method of recovering tax revenue according to claim 1, wherein the step of populating the database includes the substeps of:

auditing transaction records of sales transactions on which no designated tax has been paid; and

entering data of the sales transactions on which no designated tax has been paid into the database based on a result of the auditing step.

3. A method of recovering tax revenue according to claim 2, wherein the substep of entering the data includes downloading the data into the database electronically.

4. A method of recovering tax revenue according to claim 1, further comprising, after the step of populating the database, the steps of:

comparing the data of the sales transactions stored in the database with a revenue collection database; and

deleting data of a designated sales transaction stored in the database if the revenue collection database indicates that the designated tax has been paid on the designated sales transaction.

5. A method of recovering tax revenue according to claim 1, wherein the step of sending the tax due notice includes the substeps of:

generating the tax due notice; and

transmitting the tax due notice to the respective purchaser.

6. A method of recovering tax revenue according to claim 5, wherein the substep of transmitting the tax due notice transmits the tax due notice by at least one of mailing the tax due notice and electronically transmitting the tax due notice.

7. A method of recovering tax revenue according to claim 1, further comprising the steps of:

verifying if the tax due notice has been paid; and

updating the database based on a result of the step of verifying if the tax due notice has been paid.

8. A method of recovering tax revenue according to claim 7, wherein the step of verifying if the tax due notice has been paid includes the substep of accessing a revenue payment database storing data of paid taxes.

9. A method of recovering tax revenue according to claim 7, further comprising the step of remitting a payment and a payment report to a revenue agency when the step of verifying if the tax due notices have been paid indicates that the tax due notice has been paid.

10. A method of recovering tax revenue according to claim 7, further comprising the step of transmitting an updated tax due notice to the respective purchaser when the step of verifying if the tax due notice has been paid indicates that the tax due notice has not been paid for a predetermined period of time.

11. A method of recovering tax revenue according to claim 7, further comprising the step of notifying a revenue agency that a tax due notice has not been paid when the step of verifying if the tax due notice has been paid indicates that the tax due notice has not been paid for a predetermined period of time.

12. A method of recovering tax revenue according to claim 1, wherein the step of populating the database includes the substep of downloading data of sales transactions on which no designated tax has been paid from merchants sales files to the database.

13. A method of recovering tax revenue according to claim 1, wherein the step of populating the database includes the substeps of:

downloading data of sales transactions on which no designated tax has been paid from merchants sales files to a central data warehouse;

accessing the central data warehouse to transfer the data from the central data warehouse to the database.

14. A method of recovering tax revenue according to claim 13, wherein the step of accessing the central data warehouse accesses the central data warehouse electronically.

15. A method of recovering tax revenue according to claim 1, wherein the populating step includes populating the database with inter-country sales data, said inter-country sales data being a subset of said interstate sales data.

16. A system of recovering tax revenue for multiple jurisdictions, comprising:

a computer-readable database populated with data of sales transactions made by respective purchasers from the multiple jurisdictions for which no designated tax has been paid; and

a network computer configured to access the sales transactions in the database and send a tax due notice to a purchaser of said respective purchasers based on the data of the sales transactions stored in the database.

17. A system of recovering tax revenue according to claim 16, wherein the network computer includes an auditing mechanism configured to audit transaction records of sales transactions on which no designated has been paid, and wherein data of the sales transactions on which no designated tax has been paid is entered into the database based on outputs of the auditing mechanism.

18. A system of recovering tax revenue according to claim 17, wherein the data of the sales transactions on which no designated tax has been paid is entered in the database by electronically downloading the data into the database.

19. A system of recovering tax revenue according to claim 16, wherein the network computer is configured to compare data of the sales transactions stored in the database with a revenue collection database and delete data of a designated sales transaction stored in the database if the revenue collection database indicates that the designated tax has been paid on the designated sales transaction.

20. A system of recovering tax revenue according to claim 16, wherein the network computer is configured to send the tax due notice by generating the tax due notice, and is configured to transmit the tax due notice to the respective purchaser.

21. A system of recovering tax revenue according to claim 20, wherein the network computer is configured to transmit the tax due notice by at least one of mailing the tax due notice and electronically transmitting the tax due notice.

22. A system of recovering tax revenue according to claim 16, wherein the network controller is configured to verify if the tax due notice has been paid, and update the database based on a result of verifying if the tax due notice has been paid.

23. A system of recovering tax revenue according to claim 22, wherein the network controller is configured to verify if the tax due notice has been paid by accessing a revenue payment database populated with data of paid taxes.

24. A system of recovering tax revenue according to claim 22, wherein the network computer is configured to remit a payment and a payment report to a revenue agency when the network computer verifies that the tax due notice has been paid.

25. A system of recovering tax revenue according to claim 22, wherein the network computer is configured to transmit an updated tax due notice to the respective purchaser when the network computer verifies that the tax due notice has not been paid for a predetermined period of time.

26. A system of recovering tax revenue according to claim 22, wherein the network computer is configured to notify a revenue agency that a tax due notice has not been paid when the network computer verifies that the tax due notice has not been paid for a predetermined period of time.

27. A system of recovering tax revenue according to claim 16, wherein the network computer is configured to download data of sales transactions on which no designated tax has been paid from merchants sales files to populate the database.

28. A system of recovering tax revenue according to claim 16, wherein the network computer is configured to download data of sales transactions on which no designated tax has been paid from merchants sales files to a central data warehouse, and accesses the central data warehouse to transfer the data from the central data warehouse to the database.

29. A system of recovering tax revenue according to claim 28, wherein the network computer is configured to access the central data warehouse electronically.

30. A system of recovering tax revenue for multiple jurisdictions comprising:

a database populated with data of sales transactions, made by respective purchasers, for which no designated tax has been paid; and

a network computer configured to access the sales transactions in the database and send a tax due notice to a purchaser of the respective purchases based on the data of the sales transactions stored in the database, wherein

the network computer comprises a memory encoded with computer readable instructions, said network computer being configured to implement a database access mechanism, a tax due notice sending mechanism when executing said computer readable instructions.

31. A computer-based system for recovering tax revenue for multiple jurisdictions, comprising:

means for populating a database with data of interstate sales transactions, made by respective purchasers from the multiple jurisdictions, for which no designated tax has been paid; and

means for sending a tax due notice to one of the respective purchasers based on the data of the sales transactions stored in the database.

32. A system of claim 31, wherein the means for populating the database comprises:

means for auditing transaction records of sales transactions on which no designated tax has been paid; and

means for entering data of the sales transactions on which no designated tax has been paid into the database based on a result provide by the means for auditing.

33. A system of claim 32, wherein the means for entering the data comprises:

means for downloading the data into the database electronically.

34. A system of claim 31, further comprising:

means for comparing the data of the sales transactions stored in the database with a revenue collection database; and

means for deleting data of a designated sales transaction stored in the database if the revenue collection database indicates that the designated tax has been paid on the designated sales transaction.

35. A system of claim 31, further comprising:

means for generating the tax due notice; and

means for transmitting the tax due notice to the respective purchaser.

36. A system of claim 31, further comprising:

means for verifying if the tax due notice has been paid; and

means for updating the database based on a result provided by the means for verifying if the tax due notice has been paid.

37. A system of claim 31, further comprising:

means for downloading data of sales transactions on which no designated tax has been paid from merchants sales files to the database.

38. A system of claim 31, further comprising:

means for downloading data of sales transactions on which no designated tax has been paid from merchants sales files to a central data warehouse;

means for accessing the central data warehouse to transfer the data from the central data warehouse to the database.

39. A system of claim 31, further comprises:

means for populating the database with inter-country sales data, said inter-country sales data being a subset of said interstate sales data.