Kevin Adams & Associates | 31330 Schoolcraft Road Livonia, MI 48150

The IRS relies heavily on its computer system to select tax returns for audit. Each return received by an IRS Service Center is statistically scored to determine its audit potential. The system is known as the Discriminate Function System (DIF). The IRS utilizes several different examination techniques to determine the accuracy of tax returns. At an IRS Service Center, computers are utilized to verify the computations shown on each return. The Service Center also conducts correspondence audits by initiating letters to taxpayers requiring verification of deductions and/or exemptions shown on a return. Office audits, conducted by non-accountant IRS representatives, are conducted in local offices. Field examinations are conducted by Revenue Agents on more complex Form 1040 returns. Revenue Agents are college degreed accountants.

File your return anyway!  The IRS will detect a non-filing based upon computer matches.  If a taxpayer has filed tax returns in the past and then a return is not filed for the next tax period, that taxpayer is identified as a "stop filer". If information documents (such as W-2s and 1099s received by the IRS) reflect reportable income and no return has been filed then that taxpayer is identified as a "non filer". The IRS uses both a "non-filer program"  and a "stop filer program" to discover return delinquencies.
Normally the IRS will initiate a non-filing check 15 months after a Form 1040 (Individual Income Tax Return) is due from a "non-filer".   In the case of business taxes and payroll taxes, such as Form 941 returns, a delinquency check begins 8 to 9 weeks after the due date of a return.
Normally the IRS will attempt to secure returns from "non filers"  by sending notices from the Service Center requesting that returns be filed. If the taxpayer fails to file despite the computerized notices, the IRS may follow up in several different ways. It may prepare tax returns for the taxpayer based upon information documents it has received from others. It may attempt to contact the taxpayer by telephone or it may assign the matter to a Revenue Officer for field investigation.

Real and personal property owned as a joint tenants passes to the surviving co-owners without going through probate. Other types of benefits, such as life insurance or annuities payable directly to a named beneficiary bypass probate. Money from IRAs, Keoghs, and 401(k) accounts transfer automatically, outside probate, to the persons named as beneficiaries. Bank accounts that are set up as payable-on-death account (POD for short) or an "in trust for" account with a named beneficiary also pass to that beneficiary without probate. If a Living Trust holds legal title to property, that also passes to the beneficiaries without probate. (The Trust is a legal entity which survives you after your death.)