IRS Launches New Program to Nab Professionals
Working with the Minnesota Revenue Department, the IRS has begin matching W-2 information and data from 1099 and 1098 forms with names of professionals with active state licenses, including lawyers, real estate brokers, accountants, insurance agents, and others.
The first conviction  as a result of this program was recorded last week in Minnesota. Minnesota accountant Scott K. Bailey pled guilty to a federal misdemeanor charge of failing to pay federal income taxes. Mr. Bailey reimbursed the government for nearly $40,000 in back taxes from 1996-1998 and faces a potential fine in the range of $3,000 to $30,000 as well as up to six months in prison.
The IRS has determined that Minnesota has more than 25,000 non-filers, about 1,500 of whom are self-employed. Overall, the IRS anticipates unearthing about 8.6 million non-filers nationwide as a result of this program.