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New software seeking state tax scofflaws
BOSTON — Tax scofflaws, beware! A pack of digital bloodhounds may be on your trail. State revenue agencies across the nation are hunting for tax evaders with new high-tech tools: computer programs that mine an increasing number of databases for clues on the finances of people and businesses.

If your name is flagged, expect a letter or a call.

"It's the new trend. It's where everybody is headed," said Verenda Smith, government affairs associate at the Federation of Tax Administrators, which represents state tax agencies. "The greatest value of these systems is in finding patterns that the human eye isn't that good at seeing."

In Massachusetts, for example, the state tax agency can scan a U.S. Customs and Border Protection database of people who paid duties on big-ticket items entering the country - so anyone who fails to pay the state the required 5 percent "use tax" gets flagged.

The state has also tried comparing motor vehicle registration data with tax returns, looking for people who might be driving Rolls Royces or Jaguars but declaring only a small income, Revenue Commissioner Alan LeBovidge said....