What Is Tax Payment Mapping?
Tax payment mapping refers to scanning bank statements for outgoing transactions made to tax authorities such as the IRS or state agencies.
In MCA and small business lending, these payments are important because they show whether a business is current with taxes, which is often a sign of overall financial health and compliance.
These transactions usually appear as ACH debits, checks, or electronic transfers with clear tax authority references. Operators use tax payment mapping to confirm obligations are being met and to surface risks when tax payments are irregular or missing.
How Does Tax Payment Mapping Work?
Tax payment mapping involves parsing transactions and classifying them as tax-related.
- Transaction review: Outgoing payments are scanned for IRS, state, or local tax authority references.
- Frequency check: Regularity of tax payments is measured against expected quarterly or monthly schedules.
- Amount validation: Payments are checked for consistency and alignment with reported revenue.
- Risk signaling: Gaps or missing payments are flagged as potential financial distress.
In Heron, tax payment mapping is automated during scrubbing.
- Automated parsing: Bank statements are ingested and analyzed for tax payment transactions.
- Categorization: Heron tags payments to IRS or state agencies as tax-related.
- Structured outputs: Tax payment amounts, frequencies, and dates are written into CRM fields for underwriter review.
- Next action: Deals with stable, recurring tax payments move forward, while missing or irregular payments may trigger exception queues.
This makes sure underwriters see tax compliance signals without manually combing through transactions.
Why Is Tax Payment Mapping Important?
For brokers and funders, tax payment mapping is critical because tax delinquency often signals deeper financial trouble. Businesses that skip or delay tax payments may not be able to handle additional funding responsibly.
Heron strengthens this analysis by surfacing tax payment behavior automatically. This saves review time, improves accuracy, and reduces the risk of approving unstable applicants.
Common Use Cases
Tax payment mapping is applied in underwriting and stability assessments.
- Confirming that applicants make regular IRS or state tax payments.
- Surfacing businesses with missing or inconsistent tax obligations.
- Writing tax payment details into CRM fields for underwriting visibility.
- Flagging applicants whose tax obligations appear misaligned with revenue levels.
- Escalating cases with tax payment gaps for exception review.
FAQs About Tax Payment Mapping
How does Heron detect tax payments in bank statements?
Heron parses transactions, identifies remittances to tax authorities, and categorizes them as tax-related. These are logged as structured fields in the CRM.
Why are tax payments relevant for MCA underwriting?
Consistent tax payments suggest financial stability and compliance, while missed payments often signal cash flow strain or distress. This makes them a key underwriting factor.
What outputs should teams expect from tax payment mapping?
Teams receive structured CRM fields showing payment frequency, amounts, and recipients. This gives underwriters a clear view of the applicant’s tax payment behavior.