Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
IRS Reports Tax Gap of $300 Billion > NetSparsh - Viral Content you Love & Share

IRS Reports Tax Gap of $300 Billion

The Internal Revenue Service is reporting that the difference between what U.S. taxpayers owe and actually pay on time totals more than $300 billion a year. Studying over 46,000 tax returns for individuals revealed the tax gap. These results indicate a failure of 15 to 16 percent of individual tax payers to fully pay their taxes. IRS enforcement activities recovered roughly $55 billion of that total gap, leaving a net tax gap of $257 billion to $298 billion.

The tax gap is comprised of three components -- underreported income, underpayment of taxes and failure to file tax returns at all. 80 percent of gap was due to individuals underreporting their income, while non-filing and underpayment accounted equally for the remaining 20 percent.

The IRS reported that underreporting was mostly linked to understated income, not overstated deductions. The agency also determined that most of the understated income was related to business activities, not wages or investment income.

While these figures may appear shocking, they more or less match the results found in a 1988 study. The numbers are also artificially inflated by individuals that fail to file returns and pay taxes. The IRS is not expected to take any new course of action based on these results.

Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Business Insider

The Supreme Court decision that will put more taxes on internet sales is good news for you
Business Insider
The decision reverses two Supreme Court rulings from decades ago, which said states couldn't require retailers to collect and remit sales taxes if those retailers weren't physically located in the taxing state. In pre-internet times, there was a ...
Your love for Amazon won't be ruined by more sales taxesCNET
Trump celebrates Supreme Court decision that could force his online store to collect more taxesCNBC
A Rough Map To The New World Of Online Sales TaxesPYMNTS.com
New York Times -Washington Post -Ars Technica -Supreme Court
all 2,816 news articles »

Tax ruling could boost local business, chamber president says
Herald Palladium
Michigan passed a law in 2015 that allows the state to collect a sales tax from online retailers who have warehouses and distribution centers in the state, such as Amazon and Overstock. Following the law's enactment, Michigan reported a $60 million ...

and more »

AZCentral.com

Retirement complications: Beware of hidden taxes when the career ends
AZCentral.com
Your taxes in retirement may be a lot more complicated than taxes while you're working. Social Security checks may or may not be taxed, depending on your income. You'll pay federal income taxes on most retirement plan withdrawals, but additional state ...


NewsOK.com

Estimates show potential for e-retail taxes in Oklahoma
NewsOK.com
Robert Dauffenbach, director of the Center for Economic and Management Research at the University of Oklahoma, showed what could be in store for Oklahoma after the Supreme Court ruled states could make laws for the collection of online sales taxes from ...
Sales tax ruling leaves lots of questions for online retailersWLWT Cincinnati

all 18 news articles »

NJ Democrats fight over taxes as budget deadline nears
Sacramento Bee
WRITETHRU. An all-Democrat skirmish over which taxes to raise has New Jersey flirting with a government shutdown. Gov. Phil Murphy, Senate President Steve Sweeney and Assembly Speaker Craig Coughlin have so far failed to find agreement on how to ...

and more »

New York Times

Once Cut, Corporate Income Taxes Are Hard to Restore
New York Times
Wars provided an impetus for tax increases, with major hikes during both world wars and the Korean War. Corporate taxes remained high for more than 30 years, then dropped sharply under President Ronald Reagan and now, again, with President Trump.


Wall Street Journal

The Jersey Tax Spiral Continues
Wall Street Journal
New Jersey's Democrats are in a budget standoff between worse and worser, though it's difficult to tell which proposal is which. Governor Phil Murphy, who defeated the ghost of Chris Christie in last November's election, is pushing for a new ...
NJ shutdown: No progress by Democrats, Phil Murphy in the fight over tax increasesNorthJersey.com

all 150 news articles »

Fox News

Doug Schoen: Democrats face trouble from population losses in high-tax blue states
Fox News
States with high taxes are at risk of losing people, business and money. In fact, conservative economists Arthur Laffer and Stephen Moore argue that up to 1.3 million people will leave California, Connecticut, New Jersey, Minnesota and New York over ...


Chicago Tribune

Former owner of Chicago soccer bar Globe Pub charged with pocketing taxes withheld from employees' paychecks
Chicago Tribune
A former owner of one of Chicago's most popular soccer bars has been indicted on federal income tax charges alleging he failed to turn over nearly $200,000 to the Internal Revenue Service that his business had withheld from his employees' paychecks.


CNNMoney

Etsy sellers confront unknowns after Supreme Court ruling
CNNMoney
The Supreme Court ruled Thursday that states can compel retailers to collect sales taxes even if they don't have a physical presence in the state, effectively paving the way for more taxes on online shopping. The ruling was praised by some in the ...

and more »
Google News

Small Business Tax Credit - Americans with Disabilities Act

Many small businesses complain when confronted with the expense of... Read More

Where to Find Tax Breaks for Your Home Based Business

April 15th looms in front of most people every year... Read More

Organizing Your Taxes

Does this scene sound familiar? It's April 7. You haven't... Read More

Section 179 ? Tax Relief From Depreciation Rules

"Depreciation." For business owners, this word is the one most... Read More

How Likely Are You To Be Audited?

Statistics for IndividualsUnfortunately, the IRS increased its rate of auditing... Read More

Business Tax Deductions

As we enter mid-March, taxpayers begin to become very interested... Read More

Fraudulent Tax Shelters ? KMPG Goes Down Hard

In the largest criminal tax case ever filed, KMPG has... Read More

Tax Tips for Home-Based Business Owners

As tax time approaches, many home-based business owners begin completing... Read More

IRS Obtains More Than 100 Injunctions Against Tax Scheme Promoters

The IRS has obtained civil injunctions against more than 100... Read More

IRS Offer-in-Compromise, Hype or Hope?

"Settle for Pennies on the Dollar! IRS debts settled for... Read More

Amending Procedural Laws for Collection of E-taxation

The electronic transaction ordinance defines the certificated copies in which... Read More

10 Thoughts on Tax Offer in Compromise

Beware of advertisements that claim to settle tax debts for... Read More

Deducting Points On Home Refinances

Deduction of Refinance PointsAny points that you pay in the... Read More

Tax Deduction for Alimony Payments? - Yes!

Over 50% of marriages end in divorce in the United... Read More

What to Do If You Can?t Pay Your Taxes

The end of tax filing extensions is quickly approaching. What... Read More

Electronic Commerce Taxation and Pakistan

Assume a buyer in Pakistan downloads software from the Internet... Read More

Are You An Innocent Victim of These Popular Myths?

Misconceptions, misinterpretations and just plain "untruths" are floating about income... Read More

How to Cut Duty Cost and Increase Profit as an Importer

Import duties continue to be significant elements in the cost... Read More

Employment Taxes ? What Are They?

If you have employees, you are responsible for paying a... Read More

Early Distributions From Retirement Plans

An early distribution from an Individual Retirement Arrangement (IRA) or... Read More

Surprising Truths About Tax Preparers

Choosing the right tax preparer for your business is a... Read More

Identity Theft ? Impacting Your Taxes?

If your identity is stolen, your finances can quickly become... Read More

Gambling Income and Expenses - Tax Requirements

Hit a big one? With more and more gambling establishments,... Read More

How to Donate Your Car to Charity and Get Tax Deduction

Donating your used car to charity is a win-win situation;... Read More

Tax Investigation - What You Need To Do

The knock on the door from a Tax Inspector is... Read More