Record-Breaking $688 Billion Tax Gap

In a stunning, and worrying, revelation, the Internal Revenue Service
(IRS) has dropped a fiscal bombshell, exposing an astonishing $688 billion tax
gap for the 2021 tax year.

That’s a hefty chunk of change that the IRS can’t account for, marking
the largest tax shortfall on record. But wait, it gets even more outrageous. The
tax gap has swelled by a whopping $192 billion compared to estimates for 2014
to 2016 and a staggering $138 billion when stacked against estimates for 2017
to 2019. Ouch!

Where’s all the money hiding, you ask? Well, approximately $542 billion
of that $688 billion total is due to sly, underreported income. The rest? Well,
it’s a cocktail of evasion tactics: people who neglected to file their returns
on time or as required ($77 billion) and others who did file but conveniently
“forgot” to pay their tax bills in full or on time ($68 billion).

The IRS is taking “urgent” steps to address a record shortfall of $688 billion in taxes owed from 2021. https://t.co/xTWK87hr83

— Denver7 News (@DenverChannel) October 14, 2023

But hold on. We’re not factoring in the late payments
Payments

One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl

One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl
Read this Term and the IRS‘s
vigilant enforcement actions, which are anticipated to churn out an extra $63
billion for the 2021 tax year. This gives us a net tax gap of $625
billion, just in case your calculator melted.