IRS Reports Tax Gap of $300 Billion > NetSparsh - Viral Content you Love & Share

Home
>
Tax
>
IRS Reports Tax Gap of $300 Billion

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:

Los Angeles Times
Ryan says tax overhaul will include a bracket aimed at the wealthy
Los Angeles Times
House Speaker Paul D. Ryan said Friday that the Republican tax overhaul will include a fourth bracket for the wealthiest Americans to ensure that high earners don't benefit more than the middle class. The bracket would be “designed to make sure we don ...
Ryan: Tax plan will include higher bracket on the richPolitico
House GOP to Keep Higher Tax Rate on Wealthy, Ryan SaysBloomberg
Q&A: The plan to overhaul the US tax systemPress Herald
The Hill -CBS News -NBCNews.com
all 122 news articles »

New York Times
Republicans Passed a Budget Bill. What Does That Mean for Tax Overhaul?
New York Times
The vote sets the stage for what could be a wild ride of tax debate over the next few months, which Republican leaders hope will end with President Trump signing a bill into law by Christmas. The big question is whether their ambitions can survive a ...
Trump pledges biggest tax cuts ever as Senate paves wayPBS NewsHour
Trump's Tax Plan Takes a Big Step Forward, But What Comes Next Won't Be EasyBloomberg
Trump tax cuts: A 'win' for the GOP, a disaster for the rest of usBaltimore Sun
Yahoo Finance -Chicago Tribune -USA TODAY
all 374 news articles »

New York Times
Senate passes budget blueprint, key to Trump tax effort
Reuters
WASHINGTON (Reuters) - President Donald Trump's drive to overhaul the U.S. tax code cleared a critical hurdle on Thursday when the Senate approved a budget blueprint for the 2018 fiscal year that will pave the way for Republicans to pursue a tax-cut ...
Senate Approves Budget Plan That Smooths Path Toward Tax CutNew York Times
Senate approves budget kick-starting GOP tax reform effortCNN
Senate Democrats fail in first attempt to save state and local tax deductionLos Angeles Times
Washington Post -CNNMoney -Bloomberg
all 2,391 news articles »

The New Yorker
A White House Fairy Tale About the Trump Tax Plan
The New Yorker
Last week, the White House Council of Economic Advisers put out a paper claiming that Donald Trump's tax plan would raise average household income by at least four thousand dollars a year. Kevin Hassett, the chairman of the Council, and Larry Summers, ...
Trump's economists say a corporate tax cut will raise wages by $4000. It doesn't add up.Vox
White House Push to Help Workers Through Corporate Tax Cut Draws SkepticismNew York Times
Americans would see up to a $9000 raise if US cuts corporate taxes, says Trump economic advisorCNBC
Chicago Tribune -Business Insider -Bloomberg
all 164 news articles »

The Hill
Republicans Consider Sharp Cut in 401(k) Contribution Limits
New York Times
WASHINGTON — House Republicans are considering a plan to sharply reduce the amount of income American workers can save in tax-deferred retirement accounts as part of a broad effort to rewrite the tax code, according to lobbyists, tax consultants and ...
Financial industry worried GOP tax plan will change 401(k)sThe Hill

all 17 news articles »

TheBlaze.com
Wounded and disabled, this veteran is burdened by loan forgiveness taxes
TheBlaze.com
So between federal and state taxes, interest and penalties, he owes about $70,000 that he can't pay. He tried to work a state job when his military service ended. But he couldn't maintain that employment because of struggles with concentration and memory.
Student debt forgiven, but wounded vet gets $62K tax billUSA TODAY
Wounded veteran sees student debt forgiven but $62K tax billWTOP

all 5 news articles »

MLive.com
Sushi restaurant pleads guilty to stealing sales taxes collected on meals
MLive.com
Sushi Samurai on Orchard Lake Road, owned by Christina and Dong Hyun Chang, entered guilty pleas in Oakland County Circuit Court on 64 felony charges relates to embezzling sales taxes and underreporting income, according to Attorney General Bill ...
Oakland Co. eatery pleads guilty to tax chargesThe Detroit News
Fishy accounting snags owners of Sushi Samurai in Orchard LakeDetroit Free Press

all 5 news articles »

Chicago Tribune
Illinois math: Higher taxes, fewer employers
Chicago Tribune
Cook County's penny-per-ounce soda tax was the worst beverage idea since New Coke. Actually, the soda tax was worse than New Coke, because people love pop enough to forgive the Coca-Cola Co.'s transgression. They don't feel the same warmth ...

and more »

Seattle Times
Planes vs. trains and a tussle over property taxes in Port of Seattle race
Seattle Times
Among the differences between Creighton and Calkins are how to handle Chris Hansen's proposal for an NBA arena in Sodo; the best way to plan for future growth at booming Seattle-Tacoma International Airport; and how to levy Port taxes on local property ...

New York Post
Senate votes to eliminate state and local tax deductions
New York Post
WASHINGTON – Senate Republicans voted Thursday in favor of eliminating the state and local tax deduction used by some 44 million Americans. By a 52-47 vote, the Senate passed an amendment to repeal the long-standing provision that allows Americans ...
Trump's Tax Plan: What Happens NextNBCNews.com
NJ, Pa. GOP push tax overhaul, with one key reservation — property tax deductionsWHYY
Republicans are celebrating tax cuts that are still a long way from becoming realityWashington Post
New York Magazine
all 22 news articles »

Google News

IRS Reports Tax Gap of $300 Billion

Tax Tax