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Can state use their computer to spy on my sales report with the tax id number from Wholesalers?

Is it possible that my state can use their computer to log in to my tax id numbers, pull up my history sales from the wholesale company that has my tax id numbers on file, report to the IRS and the IRS then send me a letter to force me to tell how much I earned in profit?

Public Comments

1. In a heartbeat. It gets worse. Say that you report income of $40k but live the lifestyle of someone who earns $1 million. The IRS will reverse engineer the numbers conservatively and assume that you're making about $1.5 million and simply send you a bill for the tax on that income. It will be up to YOU to prove otherwise.