If you observe potential non-compliance, what is your immediate next step?

• A. Publicly announce the issue to co-workers
• B. Ignore it unless there is a whistle blower
• C. Immediately issue penalties on the spot
• D. Document the observation with evidence, discuss at a high level with the taxpayer if appropriate, and plan for further verification and action per procedures

Answer: (D)

Noting potential non-compliance requires an evidence-based, procedure-driven response. The immediate next step is to document the observation with evidence, gathering records and notes to create an auditable trail. If appropriate, discuss the matter at a high level with the taxpayer to understand their perspective and clarify facts, but keep this conversation focused and non-accusatory. Then develop a plan for further verification and appropriate action in line with established procedures, which may include additional data gathering, supervisory review, and scheduling further verification or enforcement steps as needed. This approach protects the integrity of the process, ensures fairness, and keeps actions consistent with policy. Publicly announcing the issue, ignoring it, or issuing penalties on the spot would violate confidentiality and due process or bypass required steps.