The IRS has announced that it will step up efforts to visit high-income taxpayers who in prior years have failed to timely file one or more of their tax returns. With the recent and ongoing hiring of additional enforcement personnel, IRS revenue officers across the country will increase face-to-face visits with high-income taxpayers who have not filed tax returns in 2018 or previous years.

For the new visits taking place, high-income non-filers taxpayers are those who generally received income over $100,000 during a tax year and did not file a tax return with the IRS. These taxpayers have typically received numerous letters from the IRS over an extended period of time, so they generally realize they have a tax issue. During the visits, IRS revenue officers will share information and work with the taxpayer to hopefully resolve the tax issue.

Compliance Strategies
The IRS is also increasing the use of data analytics, research and new compliance strategies, including personal visits, to reach taxpayers and tax return preparers who have not filed federal tax returns. To promote voluntary compliance with tax laws, the IRS is using new ways to leverage existing processes and systems, including:

  • increasing the identification and case creation for individual and business nonfilers;
  • the Automated Substitute for Return program (ASFR), affecting individuals who have not filed tax returns but whose available income information shared with the IRS indicates a significant income tax liability;
  • the automated Code Sec. 6020(b) process, which promotes employment tax filing compliance; and
  • the Delinquent Return Refund Hold program (DRRH), which systemically holds an individual taxpayer’s income tax refund when their account has at least one unfilled tax return within the five years surrounding that return.

The IRS is also working with key partners to better educate taxpayers and tax professionals on filing requirements.

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LaVonne D. Lawson is a tax attorney, representing individuals and entities in federal and California state tax matters.

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