From Challenges to Champions: IVIX Customer Outcomes

If you follow IVIX, you’re likely already aware of our innovative technology that transforms publicly available data into actionable leads, helping tax authorities uncover hidden revenue and close tax gaps. But beyond our outstanding technical capabilities, what really matters at the end of the day are our customers’ results. As VP of Customer Success, I lead IVIX’s Customer Success and Data teams, working closely with our customers to ensure their needs are met and that our solutions deliver the right outcomes. In today’s blog, I shed some light on this process, as well as the tangible results tax authorities are seeing with IVIX.

A Trusted Partner for Tax Authorities

At IVIX, we recognize that each tax authority operates in a unique environment with its own set of challenges. This understanding drives our commitment to collaboration, ensuring that every solution we deliver is tailored to address specific customer needs. One customer described our collaborative process perfectly when they told us that “IVIX’s team has been terrific brainstorming with us to identify specific tax gaps, and responsive in developing related compliance opportunities.” By fostering these partnerships, IVIX not only delivers results but also empowers tax authorities to strengthen compliance systems, optimize operations, and achieve long-term success. In turn, by working closely with our customers, we’ve not only helped them overcome tax compliance challenges but also learned from their experiences, using their feedback to continuously refine and enhance our solutions.

Following are two recent customer stories that demonstrate how IVIX works with our customers to ensure success.

Customer Spotlight #1: Recovering Untaxed Revenue from E-Commerce

E-commerce has become a thriving sector, but its rapid growth has also created challenges for tax authorities seeking to ensure compliance. A U.S. state tax authority  turned to IVIX to tackle this issue head-on. Using our eCommerce Solution, the IVIX Customer Success team worked with the authority to run a pilot project assessing the true scope of tax compliance among online sellers in their jurisdiction.

Our collaboration began with a discovery phase, where IVIX and the tax authority worked together to identify key areas of concern within the e-commerce sector. This included understanding specific regional challenges, pinpointing high-risk categories of sellers, and defining clear goals for the pilot.

Throughout the process, IVIX’s team maintained close communication with the authority, offering hands-on support to ensure seamless integration with their existing workflows. By working in tandem, we addressed questions, adjusted priorities as new insights emerged, and ensured that the leads generated were actionable and impactful.

The results were staggering: we identified 100 potential leads with details on seller identity, business activity, and the estimated magnitude of operations, as well as the supporting data needed for investigations. Of the 100 leads, 99 were determined to be noncompliant. That’s a 99% accuracy rate! IVIX estimated 77 of these leads to represent over $100 million in untaxed business activity, and that was for just one year. By using IVIX’s e-commerce solution, the tax authority was able to focus its efforts on the pre-vetted, high impact leads that IVIX produced, reducing false positives, accelerating investigations and improving efficiency.

Customer Spotlight #2: Tackling Noncompliance in Cryptocurrency

The rapidly evolving crypto market poses unique challenges for tax enforcement, but IVIX’s Cryptocurrency Solution is designed specifically to address this complexity. The IVIX Customer Success team worked with a tax authority that sought to use our platform to investigate noncompliance in the Crypto market – specifically, they were interested in theNon-Fungible Token (NFT) sector.

To do this, IVIX set up a short proof-of-concept for the customer. After understanding the customer’s objectives, we tailored our Crypto solution for the NFT sector in the tax authority’s jurisdiction. The IVIX solution was installed in a secure onsite environment that enabled IVIX leads and insights to be automatically matched to the authority’s internal data, rapidly matching taxpayers to business activity and automatically calculating tax deficiencies. Throughout the process, our team supported the tax authority with training, lead validation, and strategic guidance to maximize the impact of their enforcement efforts. In addition, we equipped them with customized reporting tools that were tailored to match the customer’s objectives.

The outcome: IVIX’s solution pinpointed 104 high-impact leads, representing over $100 million in unreported revenue. The leads were ranked by estimated unreported revenue and the corresponding tax deficiency, so the tax authority could prioritize the highest-impact cases first. Each lead also contained all the documentation required to work and close the case. This collaboration not only uncovered hidden revenue, but also equipped the tax authority with the tools and insights needed to navigate the complexities of the crypto ecosystem. As a result, the authority was able to enhance its enforcement capabilities and demonstrate that no sector is beyond reach.

From Partner to Force Multiplier

These spotlights are typical of our customer experiences and outcomes, at both the pilot and enterprise levels. IVIX has worked with tax authorities across the globe, at both the state and federal level, who have used a wide range of IVIX solutions, depending on their priorities. Across all IVIX customers, we’ve seen impressive aggregate results:

·      $1 billion+ in revenue uncovered from previously unidentified business activity.

·      99% accuracy in matching IVIX leads to taxpayer identification numbers (TINs).

·      97% accuracy in identifying noncompliance.

While these numbers are impressive, what matters most is how they translate into success for tax authorities. We’ve found that while each tax authority has its own unique set of challenges and objectives, they are universally focused on efficiency, they are often strapped for resources, and they are always looking for ways to do more with less. Accomplishing their mission to close the tax gap has become increasingly challenging with the rapid evolution of new and emerging markets, spurred by the digital economy.

This is why IVIX was founded—we equip resource-strapped authorities to close the tax gap in the digital age. IVIX acts as a force multiplier, extending the effectiveness and efficiency of our customers’ teams. By automating data gathering and prioritizing high-impact cases, we have enabled tax authorities to:

· Save time and resources: Our remarkable accuracy in identifying noncompliant cases and automatically matching them to TIN enables our customers to accelerate audits and reduce false positives.

· Focus efforts on high-impact cases: The leads we provide are ranked by potential impact, so authorities can target the cases with the most significant tax deficiencies first.

· Close cases faster: IVIX’ leads include the documented proof of business activity needed to work a case, so authorities can move quickly from investigation to enforcement.

With IVIX, tax authorities can easily pinpoint and prioritize cases with significant tax deficiencies, supporting each one from start to finish – with full access to all underlying data. This reduces false positives while accelerating audits, expediting case closures, and streamlining workflows. As one customer recently noted, “IVIX has transformed our tax enforcement capabilities. Their platform has been crucial in closing significant tax gaps.”

Conclusion

IVIX is transforming the way tax authorities uncover hidden business revenue and improve compliance. Our solutions empower authorities to close tax gaps and achieve impactful results. But behind every one of these success stories is a partnership. We work closely with our customers to understand their challenges, adapt our solutions, and ensure their enforcement efforts succeed. IVIX delivers results, builds trust, and helps tax authorities navigate the complexities of modern tax enforcement.

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