Page 65 - IRS Plan

Initiative 2.6 Expand engagement with non-filers
The IRS will provide early, tailored outreach to taxpayers who do not file on time
Where we are heading
Individuals and entities who are required to file
tax returns but fail to do so on time are known as
delinquent non-filers. Many are not intentionally
avoiding taxes but fail to file for simple reasons,
such as being unaware of their obligation to file
taxes, forgetting to file, not knowing how to file,
missing the deadline to request an extension,
or attempting to file but failing to ensure that their
return reaches the IRS. Today, IRS notices to
non-filers are delayed and are not tailored to the
common reasons taxpayers do not file. Delinquent
non-filers may be subject to penalties when the
IRS assesses their tax obligations, and they may
even miss credits and deductions for which they
are eligible.
We will expand outreach to individuals and entities
as soon as they miss a filing deadline and provide
more options to help them become compliant.
These options will be simple, easy to understand,
and reflect common reasons why individuals and
entities do not file on time. We will explore options
such as: (1) prompting taxpayers to file a simple
request for an extension; (2) allowing certain
individuals to indicate that they have only wage
income and would like the IRS to complete their
returns based on reported information; (3)
informing individuals who are not required to file
returns about tax credits they may be eligible for;
and (4) proactively offering payment agreements
to taxpayers who may not be able to pay in full
immediately. Communications will provide clear
information about the consequences of not filing
and help taxpayers become compliant. We will
also enhance our use of data and analytics to
identify and contact more non-filers in a timely
manner.
58 IRS IRA Strategic Operating Plan
Part II: Objectives and Initiatives
What success would look like
Success for this initiative would include
an increase in non-filers who are detected
and contacted in a timely manner so they can
voluntarily comply; an increase in simple options
that reflect the reasons why individuals and entities
do not file, thus improving the taxpayer experience;
an increase in the number of taxpayers who self-
correct (i.e., pay on their own without intervention);
and a reduction in the number of taxpayers who
face additional penalties.
Key projects
1. Develop tailored non-filer treatments
that are simpler for taxpayers and address
common issues that cause taxpayers not
to file. Explore more options to help taxpayers
become compliant that are simple, easy
to understand, and reflect common reasons
why individuals and entities fail to file.
2. Build enhanced analytics to detect more
non-filers sooner. Use improved data and
expand the use of analytics to detect more
non-filers as soon as they miss deadlines.
3. Build treatments tailored for non-filers
who are not required to file returns but
may be eligible for tax credits. Develop
analytics to better identify lawful non-filers who
may be eligible for a credit or deduction.
Explore simple tools and contacts to help them
access tax credits for which they are eligible.
4. Expand capacity and resources for our
non-filer and return-delinquency programs.
Increase capacity and resources for non-filer
programs so that we can proactively contact
all appropriate non-filing individuals and entities
identified, thereby providing exceptional
customer service to non-filers who need
assistance in becoming compliant.