Please ensure Javascript is enabled for purposes of website accessibility
December 6, 2022

The IRS Seems Surprised That the Tax Gap Isn’t a Lot Worse

Your efforts to keep the increase in the tax gap under $100 billion is greatly appreciated.

The Internal Revenue Service estimates that U.S. companies and individuals failed to pay $385 billion in taxes they owed in 2006, an increase from $290 billion five years earlier. The agency said the rate of compliance remained almost unchanged at 85.5 percent, down slightly from 86.3 percent in 2001. The IRS announcement today is the first update to the so- called tax gap estimate in five years. The gap grew because the income base expanded between 2001 and 2006, the agency said. “Despite what seems to be increasing complexity, Americans’ compliance remained steady,” Frank Keith, an IRS spokesman, said in a telephone interview today.

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Related articles

Exposure Drafts: A Very Taxing Thanksgiving

Listen to Oh My Fraud, a podcast by Caleb Newquist and Greg Kyte, and get free CPE through Earmark. And Exposure Drafts holiday cards are now available for purchase through Rubook Creative. Latest Accounting Jobs–Apply Now: Remote Audit Professionals, all levels Remote Posted 4 mins ago Tax Accountant, Advisory, CPA or EA Remote Posted 4 mins ago Tax […]

The Widening of the Tax Gap is the IRS’s Fault, Says the IRS

Accounting Today reported on Friday: The estimated gross U.S. tax gap increased to $496 billion annually for tax years 2014 through 2016, a rise of over $58 billion from the prior estimate — and the Internal Revenue Service estimates the gross tax gap will rise to $540 billion for 2017-2019. “The increase in the tax […]