The Internal Revenue Service (IRS) recently released new estimates for tax years 2011, 2012, and 2013, revealing a relatively steady tax gap of about 84 percent since 2008 between the true federal tax liability and the amount of tax that was paid on time. For the period 2011 through 2013, this translated to approximately $441 billion per year.
“Voluntary compliance is the bedrock of our tax system, and it’s important it is holding steady,” said IRS Commissioner Chuck Rettig. “The vast majority of taxpayers strive to pay what they owe on time. Those who do not pay their fair share ultimately shift the tax burden to those people who properly meet their tax obligations. The IRS will continue to direct our resources to help educate taxpayers about the tax requirements under the law while also focusing on pursuing those who skirt their responsibilities.”
To read the full IRS press release on the tax gap, click here. For assistance with your federal tax compliance matter, contact one of our attorneys today.