Executive Summary
In fiscal year 2005, Federal receipts totaled over $2.2 trillion. More than 95 percent of net receipts were collected by the Internal Revenue Service (IRS) through its administration of the income, transfer and excise tax provisions of the Internal Revenue Code. The vast majority of these receipts is collected through our voluntary compliance system, under which taxpayers report and pay their taxes with no direct enforcement and minimal interaction with the government. The overall compliance rate achieved under this system is quite high. In 2001, the compliance rate was over 86 percent, after including late payments and recoveries from IRS enforcement activities. Nevertheless, an unacceptably large amount of the tax that should be paid every year is not, requiring compliant taxpayers to make up for the shortfall and giving rise to the “tax gap.” Click Here.

Now that this year’s tax-filing deadline has passed, if you’re like most people, you probably want to stuff those papers in a box and put the whole business out of mind. But it’s never too early to start your tax-minimizing strategy for 2007. Click Here.

LOS ANGELES (MarketWatch) — In November alone the IRS issued more than 15 notices, revenue procedures and revenue rulings. Do you have any idea how many of these changes affect you and your finances? Click Here.

WASHINGTON: According to research conducted by the Internal Revenue Service, businesses that pay their taxes using the Electronic Federal Tax Payment System (EFTPS) have significantly fewer IRS penalties assessed. Click Here.

Compiled by FTA from various sources. Click Here.