(NewsNation) — The IRS unveiled Thursday plans to target “non-filers” with a new round of letters, starting with high-income taxpayers who’ve failed to file federal returns since 2017.
The agency will begin sending letters to wealthy non-filers this week. The IRS said about 100,000 cases involve people with income from $400,000 to $1 million and about 25,000 instances stem from those with an income over $1 million.
Although the IRS plans to send about 125,000 notices, the actual number of non-filers involved may be fewer, as many of them failed to file in multiple years.
The letters, known as CP59 noticeswill be sent to 20,000 to 40,000 non-filers weekly, according to the agency. Notices will be sent to those who did not file between tax years 2017 to 2021.
The IRS urges recipients to take “immediate action” to avoid additional notices, higher penalties, and “stronger enforcement measures.”
“If someone hasn’t filed a tax return for previous years, this is the time to review their situation and make it right,” IRS Commissioner Danny Werfel said in a news release. “For those who owe, the risk will just grow over time as will the potential for penalties and interest.”
The failure-to-file penalty is 5% of the amount owed per month, up to 25% of the tax bill, according to the IRS. There’s also an interest-based penalty based on the current interest rate.
The IRS urges non-filers to work with a tax professional to file past-due returns and calculate taxes owed, penalties, and interest.
The agency said the non-filer program has only run “sporadically” since 2016.
Non-filers can learn more about past-due returns here.
