Multistate Clearinghouse Receives Honorable Mention at the GCN Awards

Multistate Clearinghouse Receives Honorable Mention at the GCN Awards

The Government Computer News (GCN) Awards honor federal and state & local government for extraordinary IT accomplishments and significant contributions to the performance of their agencies. These accolades recognize the best of breed for the top IT programs across the public sector. Leading government and industry executives annually attend the GCN Awards Gala to honor these innovative teams.

This year, the Multistate Clearinghouse program was nominated for a GCN Award. Out of hundreds of nominations, the Multistate Clearinghouse was singled out for an honorable mention for the significant impact it has made on cross-border compliance issues for State Tax and Revenue agencies.

The Multistate Clearinghouse, hosted by the Massachusetts Department of Revenue, is currently a collaboration of seven states that share and analyze information stored in a secure data warehouse environment for the purpose of identifying (and ultimately eliminating) inter-state non-compliance. The current scope includes annual matching of all personal income tax returns (both resident and non-resident) for a single tax year from participating states using a single data warehouse.

A single multi-state data warehouse with single input and output data exchange standards (i.e., common file layouts) enables efficient participation and faster sharing of data with all other states.

As the Multistate Clearinghouse grows in participation, the project’s scope will expand into other areas of tax compliance where there are similar advantages to sharing information through a centralized, standardized, and secure “hub.”  The goal for the Multistate Clearinghouse is to increase participation amongst states to ultimately put an end to inter-state non-compliance issues.  

In just its third year of implementation, the Multistate Clearinghouse surpassed $17 million in additional revenue collected on combined investments of under $1.5 million, for an ROI of over 11:1.

The benefits gained from investments made in the Multistate Clearinghouse’s proven business model and technical asset have only just begun to scratch the surface.  Going forward, it strongly positions participants to rapidly and securely expand their data exchanges with other states and to address additional tax non-compliance issues.

To view other Award Winners and Honorable Mentions, please click HERE. If you would like more information about the Multistate Clearinghouse project or want to participate, please contact Kevin McCarthy with the Massachusetts Department of Revenue at 617-626-2123, McCarthyK@dor.state.ma.us or Brian Williams with RSI at 888-826-1324 x345, BWilliams@RSIMail.com.