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:: Placer Mining Industry - Chapter 6 - Non-Filers
Through
examination
of DNR
documentation
and
research
of the
information
available
through
internal
resources,
the
identity
and
filing
status
of an
individual
can be
ascertained.
Investigation
of these
records
will
allow
for
determination
of
compliance
by this
population.
Affidavits
of
Annual
Labor on
file
with DNR
are a
good
place to
start.
The
documents
will
reveal
the
owner of
a claim
and the
current
address.
It is
the
owner's
responsibility
that the
Division
of
Mining
have a
current
address.
The
Affidavit
further
reports
the
names
and
current
addresses
of the
persons
who
actually
performed
the
work.
When
examining
the DNR
documents,
the
names
and
addresses
of the
individuals
on the
report
should
be noted
and
subsequently
verified
through
IDRS for
their
filing
status.
If
research
reveals
that an
individual
has
failed
to file
a
return,
contact
should
be made
and they
should
be
encouraged
to come
into
compliance.
An IRP
document
should
be
obtained
and
checked
for
information
regarding
wages or
non-employee
compensation.
Employers
can then
be
contacted
for
copies
of
documents
or any
other
information
concerning
the
individual
which
would be
helpful
in
supporting
an
income
issue.
The DNR
files
can also
be
examined
for
activity
regarding
this
individual.
This
includes
any
property
transfers,
production
reports,
etc.
The
Affidavit
of
Annual
Labor
gives
the
names of
individuals
who
actually
worked
the
claim in
any
given
year. It
does not
detail
the
capacity
of the
laborer,
that is,
as an
employee
or an
independent
contractor.
If the
SSN or
the EIN
can be
ascertained
for the
owner, a
PMFOLS
(summary)
can be
run to
determine
if Forms
W-2 or
1099
have
been
filed.
If it is
found
that
information
documents
have
been
filed, a
PMFOLD
(detail)
can then
be run
to
further
define
what has
been
filed.
If it is
found
that an
individual
laborer
has not
filed an
income
tax
return
but
information
reports
were
filed,
the
information
should
be
obtained
to
properly
document
the
file.
Initially,
this
information
should
be
sought
from the
individual
who
actually
filed
the
form. If
the
documents
are not
obtainable,
an
explanation
as to
why and
what
procedures
were
taken to
procure
a copy
should
be
included
in the
file.
Upon
confirmation
of an
individual's
non-filer
status,
an IRP
document
should
be
ordered.
An IRP
document
will be
considered
evidence
of
income,
as it is
an
internal
IRS
document
whose
source
and
authenticity
is
within
the
Service's
ability
to
confirm.
However,
copies
of
actual
documents
are
preferable
over
internal
documentation.
The
Bureau
of Labor
Statistics
(BLS)
for
non-filers
should
be
considered
when a
taxpayer
can be
located
but is
uncooperative.
The BLS
statistics
can be
used, if
it
appears
that a
taxpayer
is
gainfully
employed
or
self-employed,
based
upon the
individual's
standard
of
living.
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