Nonfiler initiative.

• Author: Laffie, Lesli S.
• Position: Miscellaneous

A Treasury Inspector General for Tax Administration (TIGTA) report entitled, "Improvements Are Needed to Enable the National Non-Filer Strategy to Achieve Its Objectives," examined IRS 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 is intentional, the report noted that certain nonfilers are referred to IRS Criminal Investigation for criminal tax evasion investigations.

The IRS estimated the number of nonfilers through historical information and limited third-party data, including information returns submitted by employers, financial...