1. This section provides descriptions of assorted transcripts used internally or externally. It includes some transcript request and certifying transcripts procedures. In general, only transcripts designed for taxpayer use should be sent to taxpayers. It also includes information on the Transcript Delivery System (TDS), which is an automated system that delivers tax account and return information to the user instantly along with an appropriate cover letter (when applicable) or to the taxpayer through the post mail feature.
About 7 million U. S. Taxpayers fail to file required income tax returns each year, while 146 million Americans dutifully file their returns each year. That means that about 5% of the populace fail to meet their obligations to Uncle Sam. As part of its National Research Program the IRS released a study in 2011 of 2006 returns which found that as result of non-filing, the government loses $28 billion per year. Although the IRS makes efforts to force non-filers into compliance, the continuing improvident cutting of the IRS budget allows more taxpayers to duck their filing obligations because the IRS has fewer resources to pursue non-compliant taxpayers.
As a tax controversy lawyer I frequently meet with taxpayers who have failed to file multiple years of returns. Many of those clients ask, “Should I file the return right now, or wait until I have the money to pay it?” The answer is simple: file it as soon as possible!