The Nation - News from Oct. 3, 1986

More than 3 million taxpayers who failed to report part of their 1984 income can expect to hear from the Internal Revenue Service within the next two weeks. The IRS found 3.2 million under-reporters when its computers matched 1984 tax returns against income-reporting forms, such as 1099 forms on which banks list interest paid and W-2s on which wages are reported. And this year, for the first time, notices to taxpayers who did not report part of their interest and dividends will automatically include a negligence penalty, which is 5% of the additional tax owed plus half the interest on the additional income.