IRS ENFORCEMENT OF TAX LAWS

IRS enforcement of tax laws. The IRS has many tools in attempting to collect unpaid taxes from delinquent taxpayers. They mail math error notices to taxpayers who appear to make a calculation or clerical error on a tax return. Many tax forms require adding two lines together or subtracting one line from another. If these amounts are miscalculated, it could ultimately offset how much a taxpayer owes or the amount or refund they are to receive. Not using the correct row and column from the tax table for the filing status claimed and taxable income amount shown, or not attaching all required forms and schedules to substantiate entries and missing or incorrect taxpayer identification numbers. When that happens the IRS sends the taxpayer a letter asking them to address the issue. IRS enforcement of tax laws.

The Automated Substitute for Return program enforces tax compliance for individual taxpayers who have not filed tax returns, but whose available income information shared with the IRS indicates an income tax liability. As part of the Substitute program, the IRS sends notices to these taxpayers, these are called CP notices, alerting them to their potential liability. As part of the substitute program, the IRS also will file a Substitute for Return tax return for those taxpayers who do not respond to the CP letters, asking them to file the non-filed tax return. When the IRS files these returns, they sometimes do not give the taxpayer credit for a personal exemption, or will not include deductions that they do not know about, that the taxpayer would know if they filed the return themselves. Beware in thinking that if you never file a tax return, the IRS cannot collect taxes, as eventually they will file a Substitute for Return .

We have had countless conversations with taxpayers who were thinking about tax resolution, but were not aware that the IRS could file a Substitute for Return tax return to collect unpaid taxes. It usually comes as quite a shock when they find out.