Does the IRS get copies/electronic filings of all W2's and 1099's and compare them with what you claimed on your returns?
by 
Anonymous
ANSWERS: 2
-
Yes, they get copies. Whether or not they compare them is up to them, and is probably a bit unreliable. But you should prepare your return with the presumption that they will be compared.
-
YES, they do get copies and YES they do compare them! It does take about 18 months before the match process happens; if you mismatch, you will get a CP2000 from the IRS which will access the additonal tax, interest, and penalties. The IRS will then tell your State about the unreported income.
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC