AP

IRS: Growing gap between US income taxes owed and paid

Oct 28, 2022, 1:05 PM | Updated: 1:33 pm

WASHINGTON (AP) — The amount of income tax money owed but not paid to the IRS is projected to grow, the agency said Friday.

For tax years 2014 through 2016, the estimated gross “tax gap” rose to $496 billion a year, an increase of more than $58 billion from prior estimates. IRS data released Friday projects that for 2017 to 2019, the estimated average gross tax gap will be $540 billion per year.

Ensuring that people actually pay their taxes is one of the tax collection agency’s biggest challenges.

“The vast majority of taxpayers strive to pay what they owe on time,” IRS Commissioner Chuck Rettig said in a statement. “Those who do not pay their fair share ultimately shift the tax burden to those people who do, which fuels the tax gap.”

He said the agency will, among other things, focus on “those who avoid their legal responsibilities.”

Biden administration officials have said that part of the money from a recent $80 billion infusion for the IRS from the so-called Inflation Reduction Act will be used to help audit high-income earners who do not pay their full tax liability.

Treasury Secretary Janet Yellen said at a Maryland IRS field office in September that the tax gap is estimated to be $7 trillion in full over the next decade.

“And since the IRS has lacked the resources to effectively audit high earners — whose audits are more complex and take more time — these high earners are responsible for a disproportionate share of unpaid taxes,” she said.

Republicans have claimed the IRS will be targeting the taxes of working-class Americans with armed auditing agents. Those claims are misleading.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Global technology outage causes chaos on Friday morning...

Associated Press

Faulty software update causes havoc worldwide for airlines, hospitals and governments

A global technology outage grounded flights, knocked banks and hospital systems offline and media outlets off air on Friday morning.

1 day ago

Republican presidential candidate former President Donald Trump arrives during the second day of th...

Associated Press

Donald Trump celebrated by former rivals at Republican National Convention

Former president Donald Trump was celebrated at the Republican National Convention by former rivals, including Nikki Haley and Ron DeSantis.

4 days ago

FILE - Members of the Henderson Fire Department load Deb Billet, 66, into an ambulance before trans...

Associated Press

Things to know about heat deaths as a dangerously hot summer shapes up in the western US

A dangerously hot summer is shaping up in the U.S. West, with heat suspected in dozens of recent deaths.

7 days ago

FILE - Dr. Ruth Westheimer participates in the "Ask Dr. Ruth" panel during the Hulu presentation at...

Associated Press

Dr. Ruth Westheimer, the sex therapist who became a pop icon, has died

Dr. Ruth Westheimer, the sex therapist who became a pop icon, media star and best-selling author, has died.

7 days ago

Biden proposes rule to protect 36 million workers from extreme heat...

Associated Press

Biden proposes new rule to protect 36 million workers from extreme heat

President Joe Biden on Tuesday proposed a new rule to address excessive heat in the workplace, warning — as tens of millions of people in the U.S. are under heat advisories — that high temperatures are the country's leading weather-related killer.

18 days ago

FILE - Rori Chang, of Glendale, Ariz., walks with her dog Ava as they leave the Maricopa Country An...

Associated Press

Here are ways that can help ease dogs’ July Fourth dread

Those with furry, four-legged family members will be searching for solutions to the Fourth of July anxiety that fireworks bring.

19 days ago

Sponsored Articles

...

Condor Airlines

Condor Airlines can get you smoothly from Phoenix to Frankfurt on new A330-900neo airplane

Adventure Awaits! And there's no better way to experience the vacation of your dreams than traveling with Condor Airlines.

...

DESERT INSTITUTE FOR SPINE CARE

Desert Institute for Spine Care is the place for weekend warriors to fix their back pain

Spring has sprung and nothing is better than March in Arizona. The temperatures are perfect and with the beautiful weather, Arizona has become a hotbed for hikers, runners, golfers, pickleball players and all types of weekend warriors.

...

COLLINS COMFORT MASTERS

Here are 5 things Arizona residents need to know about their HVAC system

It's warming back up in the Valley, which means it's time to think about your air conditioning system's preparedness for summer.

IRS: Growing gap between US income taxes owed and paid