What Do You Do When Your Data Doesn’t Match the Government’s?

With the advent of real-time reporting and data collection, today’s reality is that the governments and tax authorities often know more about your business than you do. Based on this, they frequently pre-fill tax returns and present their numbers to you rather than past filing processes that allowed you to collect, refine and report your own tax liability findings.

However, what if the government is telling you that the amounts you owe are greater than you believe or had anticipated based on your own internal calculations?

Here is where the rubber meets the road sort of speak. In the past, when your business would collect the data and file your tax returns, the IRS would accept them and then if they had reason to doubt your figures, they could conduct an audit to determine if you were correct. If you were wrong, you would generally be charged a nominal fee.

Today’s New Reality

In today’s world of tax compliance, the onus is on the business to dispute the numbers with data of their own. If they are unable to do, then the numbers provided by the tax authority stand as the official returns of record. In other words, if you can’t prove otherwise, it stays as is.

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Enter Mirror Visibility™

Mirror Visibility offers several benefits for businesses in the context of tax compliance. One of the primary advantages is that it provides businesses with the ability to see exactly what tax authorities see, enabling them to validate or challenge their assessments with confidence. This is crucial because it allows businesses to analyze and present the source data required to argue against any discrepancies in the pre-filled tax returns provided by the authorities.

Additionally, Mirror Visibility helps businesses avoid conflicting data and build the capabilities to mount a defense with accurate data. This is particularly important in a world where tax administrations receive source data from multiple systems, which they can combine, triangulate, and analyze, while a business cannot. By investing in a single compliance partner with a profound understanding of the enterprise software ecosystem, businesses can achieve data harmonization and trust, simplifying how they meet mandatory reporting requirements set by governments.

To learn more about the concept of mirror visibility and how it can assist your business in protection itself against being overcharged on its tax obligations by the government, read the following White paper.