IRS Coming After Tax-Delinquent Wealthy People in 2020

At recent tax programs, IRS officials referenced a new program called “Hi-Def” which will be targeting wealthy people who have not filed tax returns. The program is intended to address the perception that the IRS  does not pursue delinquent wealthy people.

Darren Guillot, deputy commissioner for collection and operations support, IRS SBSE Division, told a conference in December that the IRS will begin contacting taxpayers for its High-Income Delinquent Program starting in the first quarter of 2020.  At the conference Mr. Guillot said,  “I’ve got the maps, and I know where they are.  I know where they live.  I know exact numbers by states.  So we are coming and we are going to be asking them why they haven’t filed returns.”

Failure to file a tax return is a criminal offense and taxpayers who have delinquent tax returns should consider filing those returns before they are contacted by the IRS.  Doing so may allow them to avoid significant criminal and civil penalties.  Delinquent taxpayers should consult with a tax professional as soon as possible to discuss options for addressing delinquent tax returns.

One option that should be considered is the IRS Voluntary Disclosure Practice that was revamped in late 2018.  In prior blog posts, we discuss  the basics of an IRS voluntary disclosure and the significant revisions that were made to the practice in late 2018.

For any questions on this or any other tax-related matter, please feel free to contact Joel Crouch at (214) 749-2456 or jcrouch@meadowscollier.com.