Case study
Transforming tax reporting at CNO Services with ONESOURCE Tax Information Reporting (OTIR)
How CNO Services cut IRS B notice solicitations by more than 75%, eliminated IT dependency, and put tax data control directly in the hands of its tax team
Introduction
CNO Services, a leading annuity, life, and health insurance provider serving middle income America, faced mounting challenges with a decades-old mainframe tax reporting system. After transitioning to Thomson Reuters® ONESOURCE Tax Information Reporting (OTIR), the company cut IRS B notice solicitations by more than 75%, eliminated its dependency on IT for routine queries, and put its tax data directly in the hands of the tax team.
75%+
Reduction in IRS B notice volume per company
1,000+
B notices reduced to under 250 — 3 of 5 companies now under 50
13+
Years CNO Services has relied on ONESOURCE Tax Information Reporting (OTIR)
Challenge
CNO Services' tax reporting platform was built on mainframe technology and the limitations were severe. The system gave the tax department almost no autonomy: only IT staff could run queries, criteria had to be highly specific, and results were delivered in an online format incompatible with Microsoft® Excel. Analysis and sorting were difficult and time-consuming.
Most critically, there was no mechanism within the mainframe to reduce IRS B notice solicitations or penalty notices — a problem that was leaving CNO Services exposed to proposed IRS penalties that could reach $360 per recipient record.
“Before transitioning to ONESOURCE, our tax platform was on a mainframe computer system, very old technology. Our B Notice solicitations were well over 1,000 pieces per company.”
Julie Chastain
Senior Tax Analyst, CNO Services LLC
Solution
CNO Services chose ONESOURCE Tax Information Reporting in 2012 for its ease and speed of implementation and its full-service managed services option. The transition gave the tax team direct self-service control over their data for the first time.
Key capabilities that drove the decision:
- TIN locking: OTIR allows the tax team to lock a recipient's name and TIN once validated, preventing downstream data changes from reintroducing errors — directly reducing B notice volume.
- Self-service reporting: Users can create, customize, and run their own reports in Excel without involving IT — a fundamental shift from the mainframe model.
- Real-time data: Changes to records take effect immediately rather than waiting for an overnight batch cycle.
- Managed services: A dedicated Thomson Reuters representative handles complex year-end tasks — including the creation and upload of up to 75 state files in a single day — freeing the tax team to focus on higher-value work.
Outcomes
- 75%+ reduction in B notice volume: B Notice solicitations fell from over 1,000 per company (5,000+ across five companies) to fewer than 250 per company — with three of the five companies now below 50.
- IRS penalty exposure eliminated: With cleaner data and locked TIN/name fields, CNO Services has consistently avoided proposed IRS penalties that could reach $360 per record and total in the millions across their recipient base.
- IT dependency removed: Tax staff run their own queries and generate customized Excel reports on demand — no IT ticket required.
- Real-time data management: Record changes are reflected immediately, replacing the nightly batch cycle and enabling faster, more accurate compliance workflows.
- Managed services time savings: Year-end state filing — 75 files across multiple jurisdictions — is handled by the dedicated TR managed services rep, reclaiming significant staff time each filing season.
Most valued features
Julie Chastain highlights two features above all others. First, the ability to create and customize reports independently: “Having the ability to create reports myself, then having the ability to customize the output has made research easier.” Second, the managed services relationship: “We have a dedicated person to help with specific issues and questions.”
Looking ahead
“I hope CNO Services continues to use OTIR. It is very user friendly. Yes, I would recommend OTIR to everyone.”
Julie Chastain
Senior Tax Analyst, CNO Services LLC
At a glance
Industry
Insurance / Financial Services
HQ region
Indianapolis, Indiana
Ready to take control of your tax information reporting?
See how ONESOURCE Tax Information Reporting can help your team eliminate manual processes, reduce IRS penalty exposure, and stay ahead of regulatory deadlines.
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