High-Income Non-Filer
  • December 12, 2022
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The American income tax system is based on the idea of voluntary compliance. The Internal Revenue Service (IRS) promotes trust in the tax system and legal compliance through its civil and criminal enforcement initiatives. Reducing the tax gap, or the anticipated difference between the amount of tax that taxpayers should pay, and the amount voluntarily collected, is one of the IRS’s goals in its enforcement approach. Keep reading if you earn upwards of $100,000 or more each year and have one or more unfiled tax returns.

IRS initiatives to boost collection from high-income non-filers

According to a report by the TIGTA (Treasury Inspector General for Tax Administration), approximately 685,555 taxpayers had an outstanding balance due in May 2021. From that group, the tax debt owed by those who reported a gross income of $200,000 totaled $38.5 billion. The investigation discovered that the system for collecting taxes from these people was not as effective as it could be, although it would seem reasonable that those with greater earnings should be natural candidates for IRS civil audits. Another report pointed out that within 52 weeks of being assigned for collection, the IRS only recovered less than 50% of the taxes owed by high income taxpayers. To get a speedy resolution to the issue, the IRS announced initiatives to boost collection from high-income non-filers. Below, we explain some of the tools identified by the IRS to enhance its collection efforts.

Related Blog Post: Steps By the IRS to Mitigate Impact of Covid 19 on Taxpayers

Delinquent Return Refund Hold Program

High income earners with unfiled tax returns should buckle up. If you haven’t filed one or more tax returns in the past five years, the IRS may activate the Delinquent Return Refund Hold Program in order to freeze individual tax refunds from the current or prior year.

Automated Substitute for Return Program (ASFR)

For late-filing taxpayers who have otherwise not submitted a return, the Automated Substitute for Return Program or ASFR creates substitute tax returns. The return is supported by records and information that the IRS has access to.

Campus Automated 602(b) program

If you run a business where you have employees, you must be very careful when it comes to your employment tax payments. The Campus Automated 602(b) program, which is mainly concerned with delinquent payroll tax issues, is directed at companies that have not maintained compliance and have delinquent employment taxes.

Related Blog Post: A Guide to Paying Payroll Taxes to the IRS

Last Word

It is always advisable to pay your taxes on time. Even if you have missed a payment or two, focus on filing the unfiled tax returns as early as possible. The best way to handle unfiled taxes is to take action now. Nevertheless, if you wish to leverage professional help, you can always hire a Dallas IRS attorney that can guide you through the process of filing unfiled taxes and the available IRS tax relief options. Avenues such as the IRS offers in compromise help lighten the burden of unpaid taxes. When looking for an experienced IRS attorney in Dallas, Texas, look no further than The Law Offices of Nick Nemeth. We help the Dallas community get the best IRS problem solutions. Our team of highly experienced Dallas tax lawyers and attorneys is always ready to discuss your case and render the necessary assistance. To get a FREE, no-obligation consultation, call (972) 426-2553 or email jamie@myirsteam.com. You may also fill out our contact form, and we will reach out to you with appropriate unfiled tax help.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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