Sigma Tax Pro advises taxpayers of increased IRS focus on nonfilers above set income thresholds
Delray Beach, Florida (PRWEB) November 30, 2016
A report from the Treasury Inspector General for Tax Administration states that the IRS has improved its processes designed to identify those individuals who failed to file their taxes by established deadlines. The goal is to recover some of the estimated billions of dollars in lost tax revenue due to nonfilers. The new process involves focusing on nonfilers whose income is above a certain threshold and failed to file their taxes by either the original deadline or an agreed extension.
The IRS normally issues delinquency notices to over 640,000 nonfilers however it is estimated that another 1.9 million nonfilers were not identified. These taxpayers may owe over $7 billion. The issue stems from the fact that the current nonfiler identification process only runs once each year so after the year has passed where the taxpayer did not file they most likely will not be notified again. Mitch Elbarki, CEO of Sigma Tax Pro states, “tax professionals should make their clients aware of the need to file prior year taxes, this can increase their business and also protect their clients from fees and potential fines.”
Sigma Tax Pro provides a full range of essential services for tax pros. This includes industry leading software solutions as well as technical support, tax preparation support and client retention strategies. Sigma Tax Pro specializes in helping tax preparation firms expand their businesses, open new offices and increase their client base.