IRS FOCUS ON NON-FILERS IS STEP IN RIGHT DIRECTION

Finding a solution to the federal government's financial distress is no simple endeavor. There are simple contributions that can be made to the entire project, however. One idea seems inarguable: All citizens who owe tax money to the federal government should pay up. The Internal Revenue Service announced an effort last week to bring wayward citizens back into the taxpaying fold. We are encouraged by this action and hope it meets with success.

Don't be mistaken on this point: If all American non-filers paid the taxes they owe, the red ink in Washington would still only be reduced by about 25 percent. The federal budget deficit is the result of government spending too much money, not that a group of ne'er-do-wells isn't paying. However, the IRS estimates that 10 million Americans fail to participate in the tax system. If they did so, the nation's $333 billion budget deficit could be trimmed by $82 billion. Every little bit helps. (With some inflation added to Everett Dirksen's classic line, a billion here and a billion there, and pretty soon you're talking about some real money.)

Without doubt, some of the non-filers have as their long-range intention to bamboozle the government. Other reasons for non-compliance vary, from business failure to divorce. Some people fail to file one year and are then afraid to come back into the system. Whatever the reason, tax bills owed should be paid out of fairness to all involved in the system. The government has a vested interest in rounding up non-filers, not for the sake of punishing them, but to settle accounts and encourage long-term compliance.

The IRS has launched a nationwide drive to help non-filers settle their tax problems. It is not an amnesty program (all taxes are still due), rather an informational effort to assist those who may have strayed from their responsibilities. Nationwide, more than 2,000 IRS agents are being shifted from their regular duties to attend to this effort. A toll-free Taxpayer Service number has been established: 1-800-829-1040. The IRS has reason to be optimistic about response to its efforts: When the special assistance period was announced last week, the toll-free number got so active that callers began getting busy signals. Keep trying, the caller are urged.

We believe the IRS (which has a local office, in the Federal Building at 339 Broadway) is on the right track with this program. Not only is it sending the proper signal that non-filers will be welcomed back to the tax system on relatively easy terms, but the agency is also making it known that non-compliance is unacceptable and will be pursued. In business terms, the government is right to look after its accounts receivable. Now, if Congress would only begin to watch the expenditure side of the ledger.