Expert: John L. Tidwell - 11/3/2009

Question
How does the state department of taxation keep track of rental income from a single property, other then what is reported by the property lessor?

Answer
Gary:

Each state receives electronic feeds from the IRS on certain lines of individual, corporate, and partnership tax returns.  The information the states receives can be used by the states to verify the information they receive from the tax payer is correct.  However, in the end, the tax system does not work unless all tax payers are truthful.

John