Case Study: Largest Income Tax Agency detects $80M+ in underreported income with Experian

Largest Income Tax Agency - Customer Case Study

Experian partnered with a state tax agency to tackle widespread income tax underreporting that strains public budgets. With estimates that roughly 16% of taxes go unpaid (about $381 billion nationally) and limited audit resources, the agency needed a predictive approach to identify taxpayers who may be underreporting income.

Experian built a custom machine‑learning risk model using its Income Insight income estimates plus credit, identity and tax‑return attributes to compare estimated versus reported household income. The model isolates the riskiest 1% of filers and, conservatively, identifies roughly $6,500 in underreported income per affected household—more than $80 million annually across the scorable population—and detected 42% of targets in testing, yielding over $33.7 million at the evaluated review rate.