Does the IRS Catch Non-Filers?
Yes, the IRS has multiple systems in place which allow them to find non-filers, generally within a couple of years after the tax return should have been filed. The IRS has implemented a software system called Information Returns Program (“IRP”) that allows them to better identify non-filers. The system works by connectingW-2 wage statements and 1099 income reports from the employer or people who paid the individuals during that year. The IRS completes the connection my matching the W-2 and 1099 information with the tax returns of people that filed in that particular tax year. When there are discrepancies in the reports, the IRS can identify people who were paid a wage and who failed to file their income tax to report it. While the process can be slow and delayed by two to three years, the IRS generally does catch up. If you should have filed your taxes and failed to do so, you should consult an attorney to discuss your options and possible courses of action to rectify the problem.
