Top 1% of high-income households in the US fail to report 20% of their income, a new paper reveals

[Yo_Mama_Been_Loggin]

The top 1% of the highest-earning American households fail to report around 21% of their income, according to new research by the Internal Revenue Service (IRS) and academic economists.

This is a far larger percentage than the IRS's methods had previously assumed, according the working paper published Sunday and first reported on by the Wall Street Journal.

Out of the 21% of unreported tax, around 6 percentage points are linked to sophisticated tax evasion that is rarely detected in random audits, the paper, by researchers at the IRS as well as schools including the London School of Economics, Carnegie Mellon, and the University of California at Berkeley, said.

These high-income households avoid paying tax through a number of ways, researchers found, adding to a bevvy of recent insight into wealth secrecy and tax avoidance. One strategy is using tax havens, where super rich individuals keep money in offshore accounts. Such evasion "increases the top 1% income share" in the US, the paper said.

https://www.msn.com/en-us/money/taxes/the-top-1percent-of-high-income-households-in-the-us-fail-to-report-20percent-of-their-income-a-new-paper-reveals/ar-BB1eQ3ax?li=BBnb7Kz

[Midnight Writer]

1. If we want to eliminate fraud, waste, and abuse in our tax system, we need to beef up the IRS.

[SWBTATTReg]

2. I believe this. And the politicians deliberately short staffed the IRS so they wouldn't have the

resources to go after tax cheats. If I were Biden, I would greatly expand the IRS enforcement agency to audit more returns, provide a more faster and rapid means of checking claimed return incomes and/or expenses, illegal tax havens (shipping income via these tax havens is illegal but it doesn't stop people from doing it). Employ more CPAs and/or accountants, auditors, etc.