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Taxes Information |
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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.
MORE RESOURCES: Those who oppose higher taxes and are fed up with record levels of U.S. debt may pine for Ronald Reagan, the patron saint of lower taxes and smaller government. WASHINGTON — Raising taxes on the wealthiest Americans, as President Barack Obama proposes to do, probably wouldn't wreck the moribund U.S. economy, but extending the tax cuts they've enjoyed since 2001 could spur some economic benefit. Taxes go downSeveral letters have complained about property tax increases. However, we are having the opposite experience: Our home's assessed value decreased by about 30 percent, and our taxes will come down almost 20 percent if no budget change is adopted, and 30 percent if the proposed change is adopted. School taxes go up for Palm Beach County residents despite cuts to budget The average area homeowner could pay $127 more in school taxes this year if the Oshkosh Board of Education raises local property taxes to the maximum allowed by the state the school board is expected to discuss its options tonight, but take no official action. DECATUR - Raising taxes is the only way out of the state budgetcrisis, and members of the General Assembly know it. ANALYSIS-Transaction taxes, liquidity and patience A combination of high foreclosures and rising property taxes put the squeeze on homeowners... and local governments. Contributor: David W. Thornton Published: Sep 07, 2010 Levying property taxes to affect housing prices is not the best option given other countries' experiences, according to a researcher from the People's Bank of China. LANCASTER -- The former home of a local hardware store will be on the auction block Friday, paving the way for government officials to collect $88,530 in back taxes. |
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