The Tax Gap - are you the 86%?

by Rocco Romano 27. January 2012 10:35
Every 5 years the IRS releases updated Tax Gap estimates, and it has just published the findings for 2006, the most recent year for which figures were analyzed. The Tax Gap statistic measures compliance by comparing total tax liabilities to total tax receipts (including with enforcement collections and late payments). It also identifies some primary reasons for non compliance in that particular reporting year (non-filing, underreporting, and underpayment were the top 3). As far as a trend, not much changed over the last two years that were analyzed. The "net tax gap" for 2006 was 85.5% compliance; in 2001 it was 86.3%.What did that mean for Treasury receipts? In 2006, the unrealized 14.5% equates to $385 billion dollars. Just remember, the tax group at Urish Popeck have the specialized skills to help to keep you and your business in compliance - while minimizing the taxes you owe. Minimizing taxes doesn't contribute to the Tax Gap - it just saves you money. For more information regarding the new tax gap estimates released by the IRS, please read their Article: IRS Releases New Tax Gap Estimates.
Categories: Tax