In a new program launched this year, the IRS is cross-checking taxpayers' reported incomes with their credit-card records.
So if you took a luxury world tour in a year you drew a modest income and left a trail on plastic, be prepared to defend your tax return. Through these credit-card checks, the IRS hopes to snag, among others, unscrupulous filers of Schedule C, used by taxpayers reporting profits and losses from businesses.
All in all, Schedule C filers are estimated to report just 57% of their income, leaving some $68 billion in unpaid taxes each year.
