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LI to streamline tax management

US: Pitney Bowes Business Insight (PBBI) has formed an alliance with Second Decimal, LLC, a tax automation solution provider. The alliance aims to provide several geospatial sales and use tax rate determination and monitoring solutions. As a result, customers can now use location intelligence (LI) to streamline tax rate management, increase tax compliance and reduce operational costs.

According to PBBI press statement, companies continue to experience challenges with accurate tax rate assignments that can lead to audit exposure and penalties for incorrect filings. Common problems include: understaffed and under-funded tax departments, out-dated or zip code-based tax software products and the need to research thousands of state and local taxing jurisdictions to keep up with the constantly changing rates and jurisdiction boundaries.

This alliance will enable customers to use an integrated solution to find the correct jurisdiction and rate for any address or latitude/longitude coordinate. In addition, customers can store their locations and leverage PBBI’s geospatial suite to determine exact tax jurisdictions for those locations automatically – then monitor them for rate changes. Second Decimal’s RatePoint software will facilitate the data load and pair the locations with detailed sales and use tax rates. The offerings can be deployed as a premise-based solution or hosted by Second Decimal. Customers will also be able to include the functionality in their own products and services through the availability of a standard application programming interface.

“There is demand in the market for location-based rate monitoring powered by a geospatial engine with a software package that can be hosted, delivered locally, or made available through a Web services API,” said Jayme Fishman, CEO of Second Decimal. “The geospatial data from PBBI will eliminate common errors that stem from incomplete data – usually in the form of a standard postal address that does not have enough granularity to ensure accurate jurisdiction/rate assignment – because they can transform those addresses to an exact location on a map and return the correct tax jurisdictions, down to the rooftops. Customers with locations that don’t have a street address will also benefit from the fully automated system’s ability to use latitude and longitude coordinates in lieu of postal address data.”

In addition, Second Decimal will offer Pitney Bowes Business Insight’s address cleansing solution as a service that can take street address data, cleanse and standardise it, and return additional data elements to a standard zip code. As a result, customers can capitalize on more reliable address data for correct tax determination.

“With this alliance, PBBI and Second Decimal are filling an industry void,” said Tony Burton, PBBI, GeoTAX product manager.

Source: PBBI