Innovative Ways the IRS Is Using Administrative Records

• Activity Number: 134
• Type: Contributed
• Date/Time: Monday, August 10, 2015 : 8:30 AM to 10:20 AM
• Sponsor: Government Statistics Section
• Author(s): Tamara Rib* and Barry Johnson
• Companies: IRS and IRS
• Keywords: Big Data ; Administrative Data ; Small Area Estimation ; Bias ; Sampling

Abstract

The IRS uses administrative data from tax and information returns to collect information for its statistical studies. This paper reviews fundamental big data issues with respect to tax data and highlights recent initiatives to better leverage administrative tax data for statistical purposes. Among the topics addressed are the benefits of large data sets for producing small area estimates or public-use files while ensuring data meet data quality standards. New processes to create ZIP Code, county, state and migration statistics, and the EO financial data extract are also discussed. Another important topic that is explored is finding ways to efficiently access large datasets and overcome limitations of filing requirements on statistical uses of administrative data. Finally, efforts to improve metadata, including information on tax laws and administrative process changes that could affect longitudinal analyses are examined.