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    Income the IRS track for individuals from third party source

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    With modern technology the IRS is now able to easily and conveniently determine much of our financial data from third party sources. In terms of income, what income does the IRS track for individuals? And, how does the IRS track how much money you made last year?

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    The types of income that can be tracked by the IRS are those which are reported to them in several formats. W-2s are obvious, but in addition, the reporting from Form 1099s is used in the IRS's matching program.

    Forms 1099 are used by financial enterprises to report interest and dividend income in addition to gross proceeds from sales of stocks and bonds. Although the ...

    Solution Summary

    The solution explains the types of income sources available to the IRS including an explanation of the forms used and the data contained on the forms.