Nonfiler initiative. (Miscellaneous).A Treasury Inspector General for Tax Administration (TIGTA TIGTA Treasury Inspector General for Tax Administration ) report entitled, "Improvements Are Needed to Enable the National Non-Filer Strategy to Achieve Its Objectives," examined IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. efforts to bring potentially 2.3 million individual nonfilers and 2.1 million business nonfilers into the tax system. The report reviewed the National Nonfiler Program's effectiveness. "Nonfilers" are individuals or businesses that do not comply with the return-filing requirements. The report notes that nonfilers may not submit timely tax returns due to lack of knowledge, confusion, poor record-keeping, differing legal interpretations, unexpected personal emergencies and temporary cashflow problems. Recognizing that some noncompliance noncompliance failure of the owner to follow instructions, particularly in administering medication as prescribed; a cause of a less than expected response to treatment. noncompliance is intentional, the report noted that certain nonfilers are referred to IRS Criminal Investigation for criminal tax evasion The process whereby a person, through commission of Fraud, unlawfully pays less tax than the law mandates. Tax evasion is a criminal offense under federal and state statutes. A person who is convicted is subject to a prison sentence, a fine, or both. investigations. The IRS estimated the number of nonfilers through historical information and limited third-party data, including information returns submitted by employers, financial institutions and other business entities. Individual nonfilers include taxpayers required to report their sole proprietorship A form of business in which one person owns all the assets of the business, in contrast to a partnership or a corporation. A person who does business for himself is engaged in the operation of a sole proprietorship. activities with their individual returns; business nonfilers include taxpayers that must file returns to report employment, corporate income, excise and highway-use taxes. TIGTA recommended that the IRS improve its coordination with states collecting sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. and employment tax information, an effort already underway under the new IRS organizational structure. In addition, TIGTA recommended that the IRS fully establish accountability and measurable milestones, as well as a method to gauge cost-effectiveness of the various action items in the National Nonfiler Strategy. The report can be found on the TIGTA Website, at http://www.treas. gov/tigta. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion