When a person fail to include a financial transaction that was reported by a Source or Reporting Entity in your Return of Income, a computerized method is used to identify the discrepancy. A request for confirmation of the transaction or data supplied by the Source/Reporting Entity is made. By amending its previously filed statements, the Source/Reporting Entity has the option to either validate the information it has supplied or to declare that it has reported incorrectly. if the Source/Reporting Entity validates the information then e-verification will be initatied for the taxpayer.