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Originally Posted by INSIDIOUS
Did you read it? Who do you think they are that file " individual tax returns reporting no gross income". Not even 'net income'. Gross. These are not peeps who got creative with deducting the yacht and lake home against salary. These are the long term unemployed, no longer even counted in unemployment statistics anymore because UI ran out long ago. The only reason they have to file is probably to deal with things like the penalties while liquidating their retirement accounts to survive and manage the demise. Otherwise why even file? No where did it say they didn't pay taxes. Not sure if penalties on early withdrawal are subject to the standard deduction.
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Did you read it, should be did you read into it. While they did audit a higher percentage showing zero income they did not say due to those liquidating IRA's or the such. What more than likely is the cause of the audit is someone showing zero income, and banks reporting to the IRS large cash deposits into their personal bank accounts. So how the audit starts is how did you make all of these deposits of over $5,000.00 without any income? There will not be any audits scheduled for those showing zero income without some ammunition.