IRS Crackdown On High Income Nonfilers And 1099 Earners

The IRS is in an active nationwide crackdown on high income nonfilers and 1099 earners, and the window to fix it quietly is closing fast for anyone who thinks the system has forgotten about them. Every week, tens of thousands of new compliance letters go out to people who thought their missing returns and side hustle income were safely buried in the past. If that sounds uncomfortably close to your situation, this is exactly when Steve Perry, EA steps in and starts taking the heat off you.

If a high earner has unfiled returns or underreported 1099 income, the IRS already has their number because every W2, 1099, and payment platform report is sitting on the IRS systems waiting to be matched. Those who move first still have strategic options like voluntary disclosure, negotiated payment plans, and penalty relief, but those who wait are the ones who end up facing liens, levies, and in extreme cases criminal exposure. This is where Steve Perry, EA at Books, Taxes & More positions clients between the chaos of IRS enforcement and a controlled, step by step recovery plan.

If someone has received a CP59 nonfiler notice, a compliance alert, or a letter tied to high income nonfiling, that is not random mail; it is the front end of an enforcement pipeline that grows more aggressive with every missed response. Acting before the IRS escalates is the difference between negotiating from strength and begging for mercy after liens hit a home, business accounts, or professional reputation. This is exactly why many high-income taxpayers, and 1099 earners bring in Steve Perry, EA early, before the IRS finishes building its file.

The new IRS crackdown

The current IRS nonfiler push is a sustained campaign funded by recent enforcement dollars specifically aimed at wealthy individuals and complex returns. The agency has identified a large pool of high income nonfilers going back several years and is actively working those cases rather than letting them quietly age out. For high earners who assumed they were too small or too old of a target, that assumption is now dangerous.

Each week, the IRS is mailing large batches of CP59 and related notices, starting with taxpayers in higher income brackets. These letters are often triggered when the IRS sees third party income reports like W2s, 1099s, and platform payment data but no tax returns to match them, meaning the IRS has the raw numbers in hand long before a taxpayer ever responds.

The same enforcement wave is spilling over into the gig and platform economy, where lower reporting thresholds for Form 1099K pull many more freelancers, online sellers, and side hustlers into clear view. As thresholds drop and platforms report more transactions, 1099 workers who once flew under the radar are finding that unreported income is now flagged systematically.

How long before things get ugly

When the IRS sends a nonfiler compliance alert or CP59 notice, recipients typically have only a short window to file, respond, or explain before the file moves to tougher enforcement. Ignoring these notices shifts the case to collections, audit, or in extreme situations criminal investigation, and high-income taxpayers who stay silent quickly lose leverage they once had.

If no response comes in, the IRS can prepare a Substitute for Return using only third-party income, leaving out legitimate deductions, credits, and business expenses, and that inflated bill becomes the basis for penalties, interest, and aggressive collection actions. As balances grow, the IRS can file federal tax liens, levy wages, and drain bank accounts, with repeated nonfiling and obvious willfulness opening the door to criminal tax charges in egregious cases.

Steve’s step by step triage

The first move in any high income nonfiler cleanup is information, not guesswork. Steve starts by obtaining IRS wage and income transcripts and account transcripts for each unfiled year, so the plan is based on what the IRS already knows rather than what the client fears. With those in hand, he maps out missing returns, income sources, prior notices, and any substitute returns, giving a clear picture of the true size and urgency of the problem.

Next, Steve works with the client to reconstruct records, gather bank statements, and track down 1099s, K1s, and books needed to create accurate, defensible returns. Once the facts are clear, he helps choose the right strategy: voluntary disclosure where appropriate, rapid filing of all missing years, addressing substitutes for returns, and building reasonable cause narratives when the facts genuinely support penalty relief.

For clients with both W2 and large 1099 streams, Steve anticipates the questions an IRS examiner or revenue officer is likely to ask, so the paperwork tells a coherent story instead of a panicked one. When balances are large, he structures payment arrangements and negotiates to keep liens and levies from crippling businesses and personal finances, turning a freefall into a controlled, predictable process.

A calm fighter in your corner

High income nonfilers and 1099 earners do not just need returns filed; they need an advocate who steps between them and the IRS and stays calm when everyone else is panicking. Steve Perry brings deep technical tax knowledge and real-world experience dealing with complex compliance cases, revenue officers, and high dollar notices, without judgment about how long the problem has been building. Clients describe the shift from terror to relief once someone who knows the IRS playbook takes over.

The IRS has made clear that this enforcement climate is not a short-term blitz, and every week of delay means more letters, more cases opened, and fewer chances to resolve things quietly. For anyone feeling that knot in their stomach over unfiled returns, unreported 1099 income, or a letter hidden in a drawer, now is the moment to act while the best options are still on the table.

To start putting this behind you, call Steve Perry, EA at Books, Taxes & More at (678) 717-9818 or email [email protected] today. For professionals who prefer to connect online, you can also Message Steve directly on LinkedIn at www.linkedin.com/in/steveperrybtm and take the first step toward getting out of the IRS crosshairs for good.