Insights

IRS Announces New Focus on High-Income Non-Filers

High-income taxpayers with overdue tax filings or payments have a new reason to address these delinquencies. The IRS announced last week that it will be stepping up efforts nationwide to visit taxpayers who earn more than $100,000 annually and did not properly file prior-year tax returns.

This new focus on high-income non-filers is a shift for the agency, which has traditionally audited a greater percentage of lower-income taxpayers who claim the earned income tax credit and other deductions.

Don't forget that putting a return on extension does not postpone the payment of taxes owed. If you are delinquent with your federal income tax filings or payments, contact a Grassi tax advisor before the IRS shows up at your door.

If an IRS agent does show up at your door, make sure to ask them for identification. An IRS agent will always provide two forms of official credentials: a pocket commission and a HSPD-12 card. The HSPD-12 is a government-wide standard for secure and reliable forms of identification for federal employees and contractors, and you have the right to see these credentials.

If you would like to verify information on the representative's HSPD-12 card, the representative will provide you with a dedicated IRS telephone number for verifying the information and confirming their identity.

For more information on this IRS announcement and how to proactively address your past-due tax obligations, please contact your Grassi advisor or Robert Tobey, Tax Partner, at rtobey@grassicpas.com or 212.223.5029.