Wendesday November 2, 2022 – The IRS has recalculated the guesses they made in 2014 – 2016. And, to one’s surprise – the estimates were raised.
The estimates are made up of people who do not file taxes; underreporting, or taxes that are understated on returns that are filed timely; and underpayment, or taxes reported, but not paid, on time.
The outgoing Commissioner Charles Rettig said, “The increase in the tax gap estimates reflects that the IRS needs to do more, both in improving taxpayer service as well as working to improve tax compliance.”
The estimates for the most recent tax reporting year, 2020, vary widely, for $250 Billion to $1 Trillion, depending on who and why the number is being reported.
Attorney Steven A. Leahy looks at the latest estimates on Today’s Tax Talk.