It was just too expensive doing it manually. DOR is building a two-phase integrated imaging system with Unisys that can process all personal income tax forms. The scanning and data capture benefits DOR in two ways. On the front end, it reduces the need for manual keypunching, filing and other labor-intensive tax processing tasks. At the back end, the extra data gives DOR the ability to carry out more accurate audits, which helps to increase voluntary tax compliance.
More compliance equals more revenue for the state.
THE TAX GAP Auditing affects only a small percentage of tax returns, but results can be significant. The nation's federal and state tax system is based on voluntary compliance. What tax agencies are owed, but don't collect, is known as the tax gap. For states, closing that gap as much as possible is a major priority. To realize that benefit and to increase overall efficiency, the IRS has undertaken a multi-billion dollar investment in imaging and information management modernization.