Black Friday, Cyber Monday and Beyond: Navigating the Holiday Surge in eCommerce

As we enter the holiday season, one thing is certain: eCommerce sales are set to soar. For tax administrators, this spike in online shopping presents both a challenge and an opportunity. On one hand, the increase in sales means an uptick in potential tax revenue. On the other hand, it comes at a time when state tax revenues across the U.S. are on the decline—putting more pressure on agencies to ensure businesses are reporting accurately.

But here’s the good news: amidst this complex landscape, there’s a treasure trove of valuable data right at your fingertips. Open-source intelligence (OSINT)—publicly available information from the internet—is an underutilized resource that can give tax agencies the edge they need to navigate this eCommerce boom and uncover tax audit leads before they slip through the cracks.

Here’s why tax administrators should pay close attention to OSINT and how it can be a game-changer in managing the challenges posed by the increase in online sales and the drop in tax revenue.

1. The eCommerce Surge: Who’s Benefiting?

We all know the holidays trigger a significant surge in online sales, but identifying the businesses poised to benefit the most requires more than just tracking public sales reports. Traditional methods of monitoring tax compliance—relying on business self-reporting, tax filings, and occasional audits—are time-consuming and sometimes incomplete.

What if administrators could get a snapshot of businesses, even the smaller, niche players, that are seeing dramatic increases in sales – in real-time?

This is where OSINT comes in. By scanning the vast and growing pool of publicly available online information—ranging from social media trends and online reviews to marketing data and product pricing—tax authorities can begin to piece together a more complete picture of how businesses are performing. This visibility is crucial for tax administrators who need to anticipate and identify potential discrepancies in sales reporting.

2. The Decline in State Revenues: Why You Need Proactive Monitoring

Many states are already facing budget shortfalls, exacerbated by the challenges of a rapidly evolving economy. The rise in eCommerce sales has only added another layer of complexity to the revenue picture. While it’s clear that online sales tax collection is critical to state budgets, there’s also an increased risk of non-compliance, especially with remote sellers and businesses that are not part of the traditional brick-and-mortar tax system.

This is where OSINT can help bridge the gap. For tax administrators, it’s not enough to rely on past tax filings. Proactively monitoring the online footprint of businesses can help identify which ones are growing quickly but may not be fully compliant with state tax laws. This gives administrators an edge in uncovering businesses that haven’t registered or are underreporting their income—all before they reach the level where manual audits might be required.

3. How OSINT Can Improve Tax Audits

Imagine being able to create a list of leads for tax audits based on the most up-to-date and accurate data—gathered from multiple online sources that businesses can’t easily hide or manipulate. OSINT gives administrators the ability to track:

●  Revenue indicators: From product listings to reviews, online data can provide a clear picture of how much a business is selling.

●  Operational footprint: Even if a business operates from a remote location or isn’t widely known, OSINT can help track its presence across multiple online channels, from its website to social media activity.

●  Market trends: By monitoring online shopping trends, administrators can predict which businesses will see a boost in sales, helping anticipate tax liabilities even before a company files its returns.

By incorporating OSINT into the workflow, tax administrators will be able to prioritize audits and tax compliance checks for businesses that are seeing rapid growth but may be slipping through traditional methods of detection.

4. The Role of IVIX in Supporting These Efforts

At IVIX, we specialize in collecting and curating OSINT data to create actionable insights for tax administrators. By leveraging our expertise, we help tax agencies turn vast amounts of publicly available online data into focused, strategic audit leads. We provide real-time monitoring, identify high-value targets, and give administrators the tools to act before any discrepancies go unchecked.

By partnering with IVIX, tax authorities can enhance their agency’s ability to track and verify online sales, ensuring that tax compliance is upheld—even during peak eCommerce seasons. This proactive approach will allow administrators to target businesses with the highest likelihood of underreporting or non-compliance, ultimately helping to mitigate revenue shortfalls and improve the efficiency of audits.

5. Time to Act: The Holidays Are Upon Us

The clock is ticking, and the surge in online sales is already underway. As tax administrators, the time to act is now. By tapping into the wealth of open-source intelligence available on the internet, administrators can gain critical visibility into the businesses that stand to benefit from the holiday sales boom. Don’t wait for tax filings to roll in; start preparing now by leveraging OSINT and proactive monitoring strategies.

The holiday season should be an opportunity to boost revenue, not a time of scrambling to keep up with an avalanche of unreported income. With the right tools and resources, tax administrators can stay ahead of the game—and ensure that tax compliance remains a top priority.

Are you ready to take action? At IVIX, we’re here to help you unlock the power of open-source intelligence. Contact us today to learn how we can help your agency stay ahead of the curve this holiday season. Together, we can ensure that the surge in eCommerce sales translates into rightful tax revenue—before it’s too late.