The Internal Revenue Service is not doing enough to match incorrect or missing identification numbers on income and wage statements with existing tax accounts, potentially costing the U.S. Treasury billions in lost revenue, charged a Treasury Department watchdog.

The Treasury Inspector General for Tax Administration audited the IRS's progress in cutting down on the volume of mismatched names and ID numbers found on forms like the 1099 MISC and W-2. TIGTA noted that in tax years 2001 to 2004, the IRS received approximately 48 million miscellaneous income and wage statements, reporting $931 billion in income, which it was unable to use in determining if the recipients filed tax returns and reported the income. The majority involved non-employee compensation, such as for independent contractors.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access