Information Returns Factor Method Law and Legal Definition
Information returns factor method is a method whereby IRS selects the taxpayer's tax return for audit on the basis of the disagreement found in the W-2 or 1099 forms and the tax return filed by the taxpayer. Every year IRS receives copies of all W-2s and 1099s. From these documents IRS records the social security numbers. Later IRS will match them with the tax returns that are filed. If a taxpayer fails to report all of the income from their forms W-2 or 1099 on their tax return, the IRS will catch this disagreement.
Legal Definition list
- Information Return
- Information Resources
- Information Resource Management
- Information Release
- Information Quality Act
- Information Returns Factor Method
- Information Security
- Information Security Automation Program
- Information Security Requirements
- Information Service
- Information Sharing and Analysis Organization
