The Audit Division of the Massachusetts Department of Revenue (“MDOR”) has developed computer programs to locate those taxpayers who have failed to file Massachusetts income tax returns and those who have understated their income.
Has the The Massachusetts Department of Revenue (DOR) notified you that your Massachusetts personal income tax return will be audited? The DOR continues to increase the number of correspondence tax audits it conducts each year.
I have previously written about the process the IRS follows when a taxpayer fails to file their federal tax returns. The IRS prepares tax returns for non-filers based upon information received from third parties, such as employers, banks, and brokerage companies. Taxpayers are given credit for any tax withholding reported by third parties.