What If You Could Transform Your State’s Tax System? The Merger of Voyatek and Voyatek Unlocks New Opportunities for State Revenue Agencies

Many tax systems run on antiquated hardware and software developed in the 1990s, and some systems are written in COBOL, a programming language first used in the 1960s.

This poses a serious risk to acquire the human capital to maintain these systems, since it is virtually impossible to find a Gen Y or Gen Z IT professional that has ever programmed a line of code in COBOL. These legacy tax systems, typically built on SQL (Structured Query Language) were developed in the 1970s with a focus on reducing data duplication as storage was much more costly than developer time. Mainframe and SQL-based applications tend to have rigid, complex, tabular schemas and typically require expensive vertical scaling. The demands on a revenue agency now include excellent user experiences (similar to Netflix and Amazon), automation for faster and cheaper operations, artificial intelligence (AI) to protect against fraud, and functionality that optimizes tax revenue.

There is good news for state departments of revenue (DOR) struggling under the weight of the multitude of legacy applications that process the myriad of tax types. Modern platforms that leverage “non SQL” or NoSQL databases with a focus on scaling, fast queries, allowing for frequent application changes, and making programming simpler for developers. With modern platforms comes the opportunity for software-as-as-service (SaaS) tax platform.

Voyatek and Voyatek: Optimizing DOR Processes

It was with those opportunities for state DORs in mind that GOM acquired ASR Analytics in 2022. ASR infused Voyatek with an array of tax analysis capabilities powered by AI and machine learning (ML). These include fraud analytics, remote seller tax identification, compliance modeling, tax policy simulation, and more.

It is with equal enthusiasm that Voyatek has announced a merger with Voyatek Consulting. Voyatek has been a preeminent provider of technology modernization and digital transformation for the public sector in California. The merger with Voyatek augments Voyatek’s tax-domain knowledge and further positions the company as a leader in public sector tax analytics. The combination of Voyatek and Voyatek creates a nation-wide, large-scale software provider focused on delivering repeatable, outcome-driven solutions for government.

Voyatek and Voyatek first partnered in 2019 to transform tax operations for one of the largest states in the nation. Collaborating with DOR within a state representing one of the world’s largest economies, the team achieved more than $500 million in benefits in the first two years, with a goal of realizing $2 billion in benefits over a 5 1/2-year implementation.

The Voyatek and Voyatek merger builds on the momentum of a recent contract win from the Arizona DOR (ADOR). Voyatek will oversee ADOR’s implementation of RevHub, Voyatek’s tax administration and analytics platform.

RevHub is a scalable integrated tax system (ITS) that will enable ADOR to streamline business processes, improve accuracy, strengthen security, and deliver an “Amazon-like” digital experience to taxpayers. RevHub leverages AI and ML to predict how legislative changes will affect revenue and to identify potential tax noncompliance. It optimizes revenue capture, helping governments achieve the funding to improve community outcomes.

Voyatek will also help ADOR launch a taxpayer mobile app that delivers the functionality and convenience consumers have come to expect from banking apps. The app will enable taxpayers to view tax records, receive alerts, respond to notices, communicate with DOR staff, and more.

Voyatek has a long history helping Arizona improve government operations. Over the past few years, Voyatek has helped the state leverage advanced analytics to thwart $250 million in tax fraud.

Public Sector Focus, National Scale

The merger with Voyatek is a significant step in furthering Voyatek’s mission to help governments create healthier, safer, and more prosperous communities. Voyatek is a Tier 1 provider of data management, analytics, AI, and fraud detection solutions. With Voyatek, it is now also a Tier 1 systems integrator. State and local agencies benefit from a broader solution set, greater scale, and unmatched public sector expertise.

With 1,300 employees, Voyatek is now one of the largest providers of digital solutions focused on state and local governments. The company serves 32 states, including 13 of the 15 most populous states. In California, it supports 28 state agencies, including the Department of Health and Human Services, the Department of Child Support Services, and the Department of Conservation.

Voyatek’s growth benefits local, state, and federal agencies in three keyways:

Efficiency – Government has a mandate to operate more efficiently. Voyatek boasts a proven track record helping agencies make sure tax dollars are used efficiently and effectively.

Satisfaction – Constituents demand convenience and personal attention. Voyatek helps agencies automate processes so that routine tasks flow smoothly and staff are freed up to deliver superior customer service.

Outcomes – Across the country, residents question their trust in government, perceiving that taxes are rising while services are declining. Voyatek equips agencies to reverse that trend. It delivers modern digital solutions that help agencies optimize operations and deliver resident-centric services. Ultimately, the company empowers organizations to execute on their mission to achieve better outcomes for the people and communities they serve.

-Voyatek Leadership Team