The IRS Wage and Investment Division handles roughly ninety million tax returns for individual and married taxpayers. The IRS Wage and Investment Division primarily works with taxpayers that fall under a particular tax profile. Taxpayers that receive W-2 wages, who are employees, and who pay their taxes through withholdings generally fall within the profile that the IRS Wage and Investment Division is responsible for helping. Most taxpayers who contact this division do not do so more than once a year. Finally, many taxpayers associated with the IRS Wage and Investment Division will receive a refund as a result of excess withholdings. The IRS collects third party information from these taxpayers in the form of W2s filed by their employers and information taken from banks, brokerage houses, and other third parties.
When it comes to administration and ensuring compliance, the IRS Wage and Investment Division’s primary purpose to ensure that returns are prepared correctly. The main tool used by the division to check this is by matching the information contained on an individual taxpayer’s return with that information that is provided by third parties. The division also rechecks taxpayer returns to ensure that credits and deductions have been properly claimed and that income information has been properly reported to the IRS. Any misstatements to the Wage and Investment Division are handled through a CP-2000 letter, which notifies the taxpayer that the information provided on the return does not match the information that the IRS has on file as well as listing any changes that the IRS proposes to make to an individual return.
The IRS Wage and Investment Division headquarters office provides strategic and operational direction, which includes managing internal support processes. “The Headquarters Operations and functional operations work together to manage the full cycle of interaction with W&I customers. They have the authority, responsibility, and expertise to oversee current operations and improve business practices and strategies.” 
Our best stuff: secrets, tax saving tools, and tax defense strategies from the braintrust at Brotman Law.
These ten big ideas will change the way you think about your taxes and your business.
Find the articles and videos you need to make the right tax decisions in the learning center.
It is not just about what we do, but who we are, why we do it, and how that benefits you.
Meet with us to outline your strategy. No further obligation, 100% money-back guarantee.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, I must inform you that any U.S. federal tax advice contained in this website is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter contained in this website.