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IRS ramps up efforts with high earners who fail to file returns

On Behalf of | Mar 7, 2020 | IRS |

The Internal Revenue Service announced its plans in February to make face-to-face visits with high-income individuals who haven’t submitted one or more tax returns in recent years.

The IRS says it will target those making more than $100,000 per year who haven’t filed returns and look for in-person meetings to resolve tax issues after contacting them first by mail.

Revenue officials expect to make 800 visits during the initial phase

The focus of the visits, which began in late February, will be for what the IRS terms as “egregious” cases of high-income individuals who fail to file a return. During the visits, officials will inform taxpayers that they are obligated to file returns and look for solutions resulting in their compliance.

The announcement comes as tax-filing season swings into full gear. The deadline to file 2019 federal tax returns is April 15. People can ask for a six-month extension but are still responsible for paying any taxes that are owed by the deadline.

IRS addresses the so-called tax gap

The revenue service says the failure to file returns is a contributor to the “tax gap,” which is the difference between the amount of taxes due and the amount that is paid on time. In its most recent estimate, the IRS says a gap of $441 billion was seen in tax years 2011 to 2013 and $39 billion resulted from those who did not file returns.

How can a tax attorney help?

The IRS says its increased efforts come after the agency hired more enforcement officers, and the visits may be either scheduled or unannounced. The revenue service says it will attempt to work out payment plans with those who can’t afford to pay their taxes in full.

If you did not file a return and owe back taxes, resulting in potential penalties with the IRS, a knowledgeable tax attorney in California can protect your interests, not only by understanding complex tax laws but through years of experience facing off against revenue officers and agents.


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