Self-Employed NonfHers, Post-Audit, Tax Year

proprietors failed to file an individual income tax return. Of these, an estimated 1.5 million returns were secured through enforcement efforts. Approxi-mately 68 percent owed tax and their average total income was $15,000. However, based on a line-by-line examina-tion of a sample of these returns, an estimated 82 percent owed tax and the average total income was nearly $21,000. The most frequent occupation of self-erhployed nonfilers was handlers, equipment cleaners and laborers, followed by construction trades.. Because the self-employed have sources of income not subject to "information reporting " (and tax withholding), there is a concern that those who fail to file an income tax return may escape detection [1]. Even when their returns are secured, it is difficult to determine how accurate the