In a May 29, 2020 report, the Treasury Inspector General for Tax Administration (TIGTA) reported that the IRS failed to audit nonfilers with billions of tax dollars lost. (See https://www.treasury.gov/tigta/auditreports/2020reports/202030015fr.pdf)
The Senate Finance Committee requested an update on that report and the IRS has responded with a letter to the Committee.
In the letter, the IRS reevaluated the 300 top high-income nonfilers shown in the May 2020 report and identified 117 (39 percent) nonfilers, with an estimated tax due of more than $5.2 billion, that still have not been examined as of mid-October, 2021 (70 nonfiler cases had not been placed into an inventory to be selected for work and 47 cases had been closed out of exam inventory without being worked).
A total of 78 (26 percent) of the top high-income nonfilers for the three tax years are either in the IRS’ Collection function’s inventory, being pursued by the Criminal Investigation function, or being pursued by or referred to the Examination function, with estimated tax due of $2.8 billion. The remaining 105 (35 percent) cases have been pursued by the IRS or the taxpayer has filed a return.
For a copy of the IRS letter, see https://www.finance.senate.gov/imo/media/doc/Top%20High-income%20Nonfilers%20-%20Senate%20Finance%20Inquiry%20FINAL.pdf
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𝐓𝐡𝐨𝐦𝐚𝐬 𝐉𝐚𝐦𝐞𝐬 𝐂𝐚𝐫𝐫𝐨𝐥𝐥, 𝐏.𝐂. 𝐢𝐬 𝐚 𝐥𝐚𝐰 𝐟𝐢𝐫𝐦 𝐟𝐨𝐜𝐮𝐬𝐢𝐧𝐠 𝐨𝐧 𝐟𝐞𝐝𝐞𝐫𝐚𝐥 𝐚𝐧𝐝 𝐬𝐭𝐚𝐭𝐞 𝐭𝐚𝐱𝐞𝐬 𝐭𝐡𝐚𝐭 𝐩𝐫𝐨𝐯𝐢𝐝𝐞𝐬 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥𝐬 𝐚𝐧𝐝 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 𝐰𝐢𝐭𝐡 𝐭𝐚𝐱 𝐡𝐞𝐥𝐩 𝐚𝐧𝐝 𝐬𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐭𝐨𝐝𝐚𝐲 𝐚𝐧𝐝 𝐭𝐨𝐦𝐨𝐫𝐫𝐨𝐰.
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