Federal tax gap

Income tax385 billion ($385,000,000,000)

I’m not sure what worries me more: the fact that the IRS was unable to collect approximately $385 billion (15% of the total) of federal taxes in 2006 or that – according to an article by CNN Money – that this is the best data policymakers have to go on regarding the government’s revenue shortfall. The worst part is that this is emafter /emthe more than 60,000 corporate and 1.5 million individual tax return audits the IRS conducts on an annual basis.   Continue reading