High-Income Non-Filers: Handling IRS Examinations, Voluntary Disclosure Program, Criminal Investigations

The IRS issued IR 2020-34 on Feb. 18, 2020, announcing its intent to visit non-filers to bring these taxpayers into compliance. The agency uses data-analytics, whistleblower reports, and even tips from neighbors to track down high-income non-filers.

For these taxpayers, those making more than $100,000 and not filing, failure to respond to initial requests can have major repercussions. These can include referral for criminal investigation, prison time, and of course, substantial penalties. The IRS offers a Voluntary Disclosure Program for domestic taxpayers. Taxpayers willing to admit that they "willfully failed to comply" with tax filing obligations may be able to resolve their noncompliance and minimize repercussions. Advisers working with high-income non-filers need to understand when to consider this alternative.

The examination process is detailed and lengthy. Communicating with the IRS, the information document request, mediation, appeals, and, when warranted, litigation are a few of the examination process stages. Tax advisers handling IRS audits must understand the process and how to best represent the taxpayer.

Listen as our panel of IRS examination experts explains how the IRS identifies high-income non-filers, the IRS Voluntary Disclosure Program and when it can be a sensible solution, and tips for handling the IRS audit from start to finish.

1. The IRS campaign
2. IRS structure
3. Non-filer identification process
4. Repercussions
5. Voluntary disclosure
6. IRS examination process
7. Appeals, mediation, and litigation
8. Best practices

The panel will review these and other key issues:

• How the IRS ferrets out high-income non-filers
• Which taxpayers should consider IRS' Voluntary Disclosure program?
• What penalties could be assessed to high-income non-filers and how can they be mitigated?
• Learn when an examination may be referred to the IRS Criminal Investigation Division

Learning Objectives

After completing this course, you will be able to:

• Decide when the IRS' Voluntary Disclosure Program would be a practical solution for noncompliant taxpayers
• Identify taxpayers targeted to IRS scrutiny under the high-income non-filer campaign
• Determine when going to appeals may be in the best interest of the taxpayer
• Ascertain when litigation is a viable alternative

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).