MN HF3301

Commissioner of Revenue must issue a request for proposals for a contract to implement tax analytics and business intelligence tools to enhance tax collection and identify audit and collection candidates.

Contractor system must leverage Department of Revenue's existing data and advanced analytical techniques including pattern detection, predictive modeling, clustering, and outlier detection to identify accounts for audit and collections.

Contractor system must rank accounts to improve success rates and return on investment for department auditing staff, provide optimization capabilities for collections prioritization, and incorporate mechanisms to reduce wrongful auditing of compliant taxpayers.

Technology must be made sustainable and stable to account for turnover in department auditing staff.

Commissioner must enter into contract by October 1, 2010, with a performance-based vendor financing option where the vendor shares in the risk of project success.