IRS to check on wealthy taxpayers evading taxes

The IRS will start visiting high-income individuals who don’t file their tax returns.

Sarah Skidmore Sell reported the news for the AP:

If you earn six figures and haven’t been filing your taxes, the IRS may come knocking.

The agency said Wednesday that it is stepping up its efforts to visit high-income taxpayers who failed in prior years to file their tax returns on time.

Revenue officers across the country will increase face-to-face visits with taxpayers who had income of more than $100,000 during a tax year and did not file a return in 2018 or prior years.

“The IRS is committed to fairness in the tax system, and we want to remind people across all income categories that they need to file their taxes,” Paul Mamo, director of collection operations for the IRS small-business and self-employed division said in a statement.

The IRS is increasing the face-to-face visits after hiring additional enforcement personnel.

The agency said the visits are aimed at informing these taxpayers of their obligations and bringing them into compliance. The IRS reminds taxpayers that there options available to those who cannot pay their bill in full, such as payment plans, and reminds taxpayers it is important to file on time, even if they cannot pay. For those who refuse to pay, the IRS can pursue civil and criminal cases.

Darla Mercado from CNBC wrote:

“These visits shouldn’t come as a surprise to the taxpayer because the IRS has contacted these individuals multiple times regarding their tax issues prior to their cases being assigned to an IRS revenue officer,” said Hank Kea, director of field collection operations, small business/self-employed division, at the federal agency.

So far, the IRS anticipates making about 800 in-person visits to these high-income non-filers in the first two months, he said. Thousands more will follow through the year. The agency anticipates sending additional revenue officers out as it identifies more cases of noncompliance.

“When you look at the tax gap, there’s a significant amount of revenue lost to individual high-income non-filers, and it literally does measure into the billions,” Kea said.

CNN’s Anna Bahney noted:

The agency said its focus will be on people who have not filed at all over taxpayers who tried to file and pay in a timely way or who have already entered into agreements to pay their taxes.

“The IRS is committed to fairness in the tax system, and we want to remind people across all income categories that they need to file their taxes,” said Paul Mamo, the director of collection operations in the small business and self employed division in a statement. “We want to ensure taxpayers know their options to get right with their taxes and avoid bigger issues later.”

If you think this might include you, the IRS suggests contacting a tax adviser rather than waiting for the knock on your door.

“It is always worthwhile to take advantage of various methods of getting back into filing or payment compliance before being personally contacted by the IRS,” said Mamo.

In a best case scenario, an IRS revenue officer shows up, shares information on unmet tax obligations and works with you to resolve the issue.

For those who can’t pay overdue tax bills immediately, payment plans are available. This is also the time when you can find out if you’re eligible for a compromise, settling your tax debt for less than the full amount, or to get a temporary delay on collection until your financial situation improves.