Taxpayers owe $385 billion in 2006 taxes: IRS

Taxpayers owe $385 billion in 2006 taxes: IRS
Image source: Pixabay

Taxpayers owe $385 billion in 2006 taxes: IRSWASHINGTON (Reuters) – U.S. taxpayers owe an estimated $385 billion in unpaid taxes for 2006, up about a third from the “tax gap” five years before, the Internal Revenue Service (IRS) said.

Despite the wider shortfall between 2001 and 2006, voluntary compliance remained steady at about 83 percent for both years, the agency said on Friday in its five-year update on the amount of taxes that are never paid.

“On a relative basis, the tax gap is largely in line with the growth in total tax liabilities,” the IRS said in a statement.

Michael Zimmerman’s Prentice Capital had an excellent year

David MarcusPrentice Capital's Long/ Short Equity Fund was up 26% net for the fourth quarter, bringing its full-year return to 53.6% for 2020. In his fourth-quarter letter to investors, which was reviewed by ValueWalk, Michael Zimmerman said the development of COVID-19 vaccines, continued easy money and clarity in the election drove a risk-on environment. Q4 2020 Read More

“In addition, some growth in the tax gap estimate is attributed to better data and improved estimation methods.”

The gross tax gap, or the amount that was not paid on time, was estimated at $450 billion in 2006, up from $345 billion in 2001.

The net tax gap, or the amount that was never paid, was $385 billion in 2006, compared with $290 billion five years before, the tax agency said.

No posts to display