Gap between U.S. income taxes owed and paid is set to keep growing, the IRS says

[BumRushDaShow]

Source: NPR/AP

October 13, 2023 1:14 AM ET


NEW YORK — The amount of tax money owed but not paid to the IRS is set to keep growing, according to projections published by the federal tax collection agency on Thursday.

For tax years 2021 and 2020, the latest to receive such IRS estimates, the projected gross "tax gap" soared to $688 billion and $601 billion, respectively. That marks a significant jump compared to years past — with gross tax gap projections standing at $550 billion for 2017-2019 and $496 billion for 2014-2016.

One of the IRS's biggest challenges is making sure that people actually pay their taxes. While agency data shows that the vast majority of Americans pay their taxes voluntarily and on time, hundreds of billions of dollars in unpaid taxes pile up each year — and tax gap estimates keep getting bigger.

IRS Commissioner Danny Werfel said that the rising tax gap estimates "underscores the importance" of more compliance efforts. Part of the $80 billion the IRS received from the Biden administration's Inflation Reduction Act is being used for that purpose. "We are adding focus and resources to areas of compliance concern, including high-income and high-wealth individuals, partnerships and corporations," Werfel said in a statement. "These steps are urgent in many ways, including adding more fairness to the tax system, protecting those who pay their taxes and working to combat the tax gap."

Read more: https://www.npr.org/2023/10/13/1205663467/income-tax-gap-keep-growing

[SouthernDem4ever]

1. That's what you get from 40 years of voting for tax dodgers and tax evaders

To repuglicans, it's a sport.

[twodogsbarking]

2. Give me back what I paid for 50+ years. They didn't pay, why should I.

[Lonestarblue]

3. Republicans want to cut this $80 billion out of the budget so the IRS has no resources to come

after them and their big donors. People like the Kochs and the tech gurus pay billions to buy Congress instead of paying taxes to the government that helps support their businesses and provide the infrastructure like electricity, water, and roads. I’m sick of millionaires and billionaires who expect a free ride because they’re rich. Who is more capable of paying for the roads their workers travel on to get to work—the workers whose wages have increased only recently or the super wealthy who have been grabbing more wealth for decades?

[DENVERPOPS]

7. We indeed

have the best government money can "buy"..........

[Chainfire]

4. All of that shortage must be from minimum wage employees hiring lawyers to beat the system.

We should jail them all.

[Farmer-Rick]

5. That gap isn't caused by the middle class

Not paying their taxes. The IRS jumps on any middle class person who dares to make a mistake or takes bad advice by the IRS itself.

I know of so many people who made the mistake of thinking they understood their taxes, when they really didn't and got hit with an audit.

I know of my grandfather who never went past the 8th grade and barely made $30,000 (equivalent today....it was actually only $10,000 a year, but that looks like hyperbole). He got audited every year like clockwork.

The IRS has all your information if you are a middle class person. They know what you owe and are hot to pass out fines if you fail to figure it out. But not so much the filthy-rich.

The filthy-rich get away with all the IRS tax avoidance scams. From the article:

"We are adding focus and resources to areas of compliance concern, including high-income and high-wealth individuals, partnerships and corporations,"

That's where the IRS fails to do its job.

[Historic NY]

6. No wonder the Republicans were against funding the IRS...

it means less and less money from their fat cat supporters. When you look at the billions that could sort out the budget deficit its amazing