Examiners may discover additional nonfilers during the examination. For example, garden centers purchase their plants from nurseries. After reviewing the checks per payee, check IDRS to determine if a return was filed for a certain payee on which you have information. This could also apply to workers who were not treated as employees. In cases where the employer did not withhold taxes and issue either a Form W-2 or Form 1099, the worker may have failed to report the income.
Some employees only work for cash.
If the taxpayer can provide such workers' names, you may find that a return was not filed. The only unique characteristic noted during this project regarding collectibility was the seasonal nature of most garden supply businesses. This page intentionally left blank.