News / Article

IRS overlooks billions in potential taxes from nonfilers

Source: https://accountingtoday.com/news/irs-overlooks-billions-in-potential-taxes-from-nonfilers-and-underreporters - Jan 6, 2021

The Internal Revenue Service hasn’t been pursuing cases involving hundreds of billions of dollars in income from individuals and businesses whose income has been showing up in Form 1099-K information returns filed by credit and debit card providers, but has been otherwise unreported.

A new report released Tuesday by the Treasury Inspector General for Tax Administration found that for tax year 2017, numerous business and individual nonfilers with Form 1099-K income weren’t identified and cases weren’t created by the IRS’s nonfiler programs. In other cases, they were identified but weren’t worked on by the IRS. “TIGTA identified 314,586 business taxpayers with $335.5 billion in Form 1099-K income that appeared to have a filing obligation, but were not identified as nonfilers by the IRS,” said the report.

click, source to read article

Category: General Business