The IRS Small Business/Self Employed Division collaborated with CI to create a fraud awareness video for IRS employees, and partnered with CI field offices in conducting fraud awareness workshops, among other moves.
The division is working on its first “modernized roadmap” to support digital communications with taxpayers, including text chat, secure messaging and secure file transfer. The division is updating specific instructions to account for changes, including advising taxpayers to list virtual currency assets and include their value on 433s and updating instructions in Publications 1854 and 5059 and Form 656.
Upcoming priorities for the division include streamlining penalty relief, enhancements to automated collection, tip reporting, and disaster relief. Finally, the IRS is decreasing the non-filer tax gap by maximizing dollars collected through programs that encourage taxpayers to file voluntarily.
References:
Stimpson, J. (2020, August 12). Non-filers, fraud are priorities for IRS SB/SE. Retrieved August 13, 2020, from https://www.taxprotoday.com/news/non-filers-fraud-are-priorities-for-the-irss-small-business-self-employed-division?position=editorial_3
The Service’s definition of a “compliant taxpayer” is mostly determined by the taxpayer’s timely filings. The Service is so anal about taxpayers filing on time that it assesses a 5% penalty every month until it reaches a maximum of 25% for failure to file. Note that filing a timely extension when not being able to meet the April 15th deadline will alleviate this penalty only if the return is filed by the October 15th deadline. However, it will not alleviate the failure to pay penalty, which will be assessed on any balance that is not paid in full by the April 15th deadline regardless of the timely filing of an extension. So please file on time for this and other reasons even if you cannot pay the balance in full. The statute of limitations will start when you file. Filing on time will also benefit the taxpayer if he or she must file bankruptcy and wants the tax debt discharged. Tax debts cannot be discharged if the respective tax return is never filed or if the tax return is filed too late.
Matthew Jennings, MBA, EA, RFC®, CEP®, CES™