IRS Reports $385 Billion Not Paid By Taxpayers

IRS 385 Billion – The IRS reports that Americans declined to pay $385 billion in taxes that were due in 2006.

This figure was a shocking increase from the $290B that was unpaid from 2001. The federal agency’s estimation for the rate of compliance was close to a constant 85.5 percent, which was slightly down from the 2001 rate of 86.3 percent.

The agency found that the difference increased due to the income base expanding between 2001 and 2006. The Office of Management and Budget at the White House the country reported a $248.2 billion budget deficit in 2006.

There would have been a $136.8B surplus for the US had all the taxpayers paid their estate, income, excise and employment taxes.

To figure out an estimate of how much businesses and individuals owe from not paying on their taxes the they use computer models. They feel that due to having more information on small corporations, better tax gap estimates are being made.

In 2006 an estimated $67B in corporate income tax were not collected. Around $48 billion of that amount were from large corporations with over $10 million in assets, according to the agency.

Compliance is at its highest in areas where withholding or information reporting is required according to the IRS.

Estimates conclude by the Internal Revenue Service show that individuals and companies in the US failed to pay $385B in taxes owed in 2006.

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