Describe the potential privacy problems

Assignment Help Taxation

Reference no: EM133202916

Assignment - Protecting Privacy of Tax Returns Paper

Description - Protecting Privacy of Tax Returns

The department of taxation in your state is developing a new computer system for processing individual and corporate income-tax returns. The new system features direct data input and inquiry capabilities. Taxpayers are identified by social security number (for individuals) and federal tax identification number (for corporations). The new system should be fully implemented in time for the next tax season.

The new system will serve three primary purposes:

1. Tax return data will automatically input into the system either directly (if the taxpayer files electronically) or by a clerk at central headquarters scanning a paper return received in the mail.

2. The returns will be processed using the main computer facilities at central headquarters. Processing will include four steps:

a. Verifying mathematical accuracy

b. Auditing the reasonableness of deductions, tax due, and so on, through the use of edit routines, which also include a comparison of current and prior years' data

c. Identifying returns that should be considered for audit by department revenue agents

d. Issuing refund checks to taxpayers

3. Inquiry services. A taxpayer will be allowed to determine the status of his or her return or get information from the last 3 years' returns by calling or visiting one of the department's regional offices or by accessing the department's website and entering his or her social security number.

The state commissioner of taxation and the state attorney general are concerned about protecting the privacy of personal information submitted by taxpayers. They want to have potential problems identified before the system is fully developed and implemented so that the proper controls can be incorporated into the new system.

Required - Describe the potential privacy problems that could arise in each of the following three areas of processing, and recommend the corrective action(s) to solve each problem identified:

1. data input

2. processing of returns

3. data inquiry (CMA examination, adapted)

Reference no: EM133202916

Questions Cloud

How does lois quam use emotions and moods in her speeches : How does Lois Quam use emotions and moods in her speeches to convey her viewpoint? Cite examples to support your statements.

Discuss material and nonmaterial cultural factors : Discuss Material and nonmaterial cultural factors. Explain any interesting verbal and/or nonverbal communication aspects of both culture

Explain why you remembered any of them : MKTG 201 American Public University System. How many do you think there are? Explain why you remembered any of them. How many billboards there actually are.

Effectiveness of two governmental services : How could I explain the effectiveness of two governmental services (Social Services and Education) that historically or traditionally have been provided by a co

Describe the potential privacy problems : Describe the potential privacy problems that could arise in each of the following three areas of processing, and recommend the corrective action(s)

Write down further restrictions on values : Consider a standard position auction. There are two positions: Top (T) and Bottom (B). Position T receives xT = 200 clicks per day and position B receives xB =

How IoT works in general and in manufacturing in specific : Explain manufacturing worldwide showing some numerical facts indicating the importance of manufacturing

Calculate the price elasticity of demand : Use the mid-point method, calculate the price elasticity of demand for both X and Y when the price increases from $6 to $8.

What are the consequences of not keeping your word : Is keeping your word in business important? Why or why not? What are the consequences of not keeping your word and not being trustworthy?

User Account

All Pages