The IRS has issued a new “tax gap” projection for tax years 2020 and 2021. It shows the projected gross tax gap increased to $688 billion in tax year 2021, a “significant jump from previous estimates,” according to the IRS. The gap is estimated to decrease by $63 billion on 2021 returns when accounting for late payments and enforcement activity. The gross tax gap is defined as the difference between estimated “true” tax liability for a given period and the amount of tax that’s actually paid to the IRS on time. This marks the first year it’s been provided for single tax years and also marks the beginning of tax gap updates on an annual basis. For additional information: https://bit.ly/3PXnepq
Our Blog 