Case Study: Iowa Department of Revenue (IDR) achieves tax gap reduction and increased revenue with Teradata's enterprise data warehouse

Iowa Department of Revenue - Customer Case Study

The Iowa Department of Revenue (IDR), charged with administering 21 state taxes and processing millions of returns, faced fragmented legacy systems, paper-heavy processes and limited ability to match internal and external data for compliance work. With scarce appropriations, the agency needed a way to improve audit targeting, reduce manual effort, and increase collections without large up‑front investment.

Working with Teradata under a benefits‑based, revenue‑sharing contract, IDR built an enterprise data warehouse, business‑intelligence tools and a web‑based Audit Component with automated interfaces to legacy systems. The EDW enabled soft‑matching, faster lead generation and better case management; five new programs produced 22,000+ leads in 2003 and generated $9.1M that year and $11.2M in 2004. Since launch the initiative has recovered over $52M, improved efficiency (avoiding a 20–25% staff increase), and created new capabilities for policy analysis and taxpayer services.

Iowa Department of Revenue (IDR)

Rhonda Kirkpatrick

Executive Officer