IRS Claims that US “Tax Gap” Continues to Grow
The IRS has just released a report stating that the tax gap in the United States is continuing to grow. The tax gap is the difference between the total amount of taxes that the government is owed and the amount that it actually collects. According to the latest estimates, the tax gap for tax years 2014 through 2016 is $496 billion, which is $58 billion higher than the previous estimate of $438 billion.
This increase in the tax gap is largely due to issues such as non-filing by taxpayers, underreporting of income, and underpayment of taxes. It’s important to note that the IRS is likely to ramp up its collection efforts in order to try and close this gap. So, if you’re behind on your taxes or have yet to file, now might be a good time to get your affairs in order and avoid any potential issues with the IRS down the line.
