Saturday Jan 07, 201212:39 AM GMT
IRS says Americans underpaid taxes by $385bn in 2006
Sat Jan 7, 2012 12:38AM
Share | Email | Print

The Internal Revenue Service estimates that U.S. companies and individuals failed to pay $385 billion in taxes they owed in 2006, an increase from $290 billion five years earlier.


The agency said the rate of compliance remained almost unchanged at 85.5 percent, down slightly from 86.3 percent in 2001. The IRS announcement today is the first update to the so-called tax gap estimate in five years. The gap grew because the income base expanded between 2001 and 2006, the agency said.


“Despite what seems to be increasing complexity, Americans' compliance remained steady,” Frank Keith, an IRS spokesman, said in a telephone interview today.


The U.S. recorded a $248.2 billion budget deficit in 2006, according to the White House Office of Management and Budget. If the IRS had collected all of the taxes owed that year, the U.S. could have had a surplus of as much as $136.8 billion.


The estimate is a comprehensive measure of the taxes the U.S. is owed and includes income taxes, the estate tax, employment and excise taxes.


The IRS uses computer models to estimate the amount owed by individuals and businesses who don't pay their taxes or don't pay their full tax bill. The agency said it is getting better at estimating the tax gap in part because of better data on small corporations.


The biggest chunk of money that goes uncollected -- $235 billion -- comes from individuals, the IRS said. Of that, $122 billion is estimated to be taxes owed on business income that would be reported on an individual return.


The IRS estimated that $67 billion in corporate income tax wasn't collected in 2006. Most of that -- $48 billion -- was from large corporations with more than $10 million in assets, the agency said. Bloomberg




More than 1,400 millionaires paid no U.S. income taxes in 2009, according to an August 2011 report from the Internal Revenue Service. Huffington Post


Twenty five percent of all American millionaires pay a smaller percentage of their income taxes than millions of middle class households. Huffington Post


The top 400 earners in the U.S. paid an average tax rate of only 18 percent. Bloomberg


Billionaires aren't the only ones that use loopholes to pay lower taxes. Thirty of America's most profitable corporations used rules like the "active financing exception" -- allowing corporations to sidestep paying taxes on overseas profits if they were derived by "actively financing" some activity or deal -- to pay less than zero in income taxes. Center for Tax Justice


280 most profitable U.S. corporations sheltered half their profits from taxes between 2008 and 2010. Citizens for Tax Justice 



Add Comment Click Here
  • Latest News
  • Top Hits
© Copyright 2010 Press TV. All rights reserved.