Comments on: 2001 Tax Shortfall was $345 Billion http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html personal finance blog with anecdotes, advice and commentary. Sun, 12 Feb 2012 22:21:00 +0000 hourly 1 By: jim http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html/comment-page-1#comment-4210 jim Mon, 20 Feb 2006 16:00:00 +0000 http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html#comment-4210 CK - Very true, a lot of people miss deductions because they simply don't know. I wonder how many people itemize when they should use standard deductions and vice versa. I've read taxguru.net before and it's very good, I recommend it too for everyone. CK – Very true, a lot of people miss deductions because they simply don’t know. I wonder how many people itemize when they should use standard deductions and vice versa.

I’ve read taxguru.net before and it’s very good, I recommend it too for everyone.

]]> By: CK http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html/comment-page-1#comment-4207 CK Mon, 20 Feb 2006 15:20:03 +0000 http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html#comment-4207 What about the millions of deductions people miss every year? The tax code makes it very easy to overpay, you have to essentially search for deductions (and credits) you are entitled to. As far as taxes go I enjoy reading the blog http://www.taxguru.net/ I'm not affliated in anyway just passing along a suggestion like I would with a good book. What about the millions of deductions people miss every year? The tax code makes it very easy to overpay, you have to essentially search for deductions (and credits) you are entitled to. As far as taxes go I enjoy reading the blog http://www.taxguru.net/ I’m not affliated in anyway just passing along a suggestion like I would with a good book.

]]> By: Mikey http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html/comment-page-1#comment-4156 Mikey Fri, 17 Feb 2006 22:35:57 +0000 http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html#comment-4156 It seems like mostly business income was underreported, not suprisingly, although I would think its quite hard to come up with how much iwasn't collected. It seems like mostly business income was underreported, not suprisingly, although I would think its quite hard to come up with how much iwasn’t collected.

]]> By: jim http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html/comment-page-1#comment-4154 jim Fri, 17 Feb 2006 21:49:39 +0000 http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html#comment-4154 I was under the impression that the IRS reported those numbers. I was under the impression that the IRS reported those numbers.

]]> By: Anon http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html/comment-page-1#comment-4153 Anon Fri, 17 Feb 2006 21:43:46 +0000 http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html#comment-4153 It seems unlikely that they are not able to collect something as obvious at W-2 data. Indeed, according to this chart: http://www.irs.gov/pub/irs-news/tax\_gap\_figures.pdf "Wages, salaries, and tips" makes up only $10B of the $345B gap. The largest number in that chart is "Nonfarm proprietor income", which sounds like something that might have a high fudge factor. In fact, the data itself is based on a sample of only 46,000 returns, which were fully audited. While I am a firm believer in statistical analysis, I also believe it is somewhat dishonest for CNN to report the gap as both an estimate and reality. It seems unlikely that they are not able to collect something as obvious at W-2 data. Indeed, according to this chart:

http://www.irs.gov/pub/irs-news/tax\_gap\_figures.pdf

“Wages, salaries, and tips” makes up only $10B of the $345B gap. The largest number in that chart is “Nonfarm proprietor income”, which sounds like something that might have a high fudge factor.

In fact, the data itself is based on a sample of only 46,000 returns, which were fully audited. While I am a firm believer in statistical analysis, I also believe it is somewhat dishonest for CNN to report the gap as both an estimate and reality.

]]> By: jim http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html/comment-page-1#comment-4147 jim Fri, 17 Feb 2006 19:20:45 +0000 http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html#comment-4147 Plus, the government isn't your enemy in this case, the people who didn't pay their taxes are. The governemnt will keep spending and spending and your kids will be the ones who end up paying for the debt. They don't want you to feel bad for the government, they don't care what you feel, they just want you to know that tax cheats are stealing from you and yours. Plus, the government isn’t your enemy in this case, the people who didn’t pay their taxes are. The governemnt will keep spending and spending and your kids will be the ones who end up paying for the debt. They don’t want you to feel bad for the government, they don’t care what you feel, they just want you to know that tax cheats are stealing from you and yours.

]]> By: jim http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html/comment-page-1#comment-4146 jim Fri, 17 Feb 2006 19:19:44 +0000 http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html#comment-4146 1099 and W2 information is sent to the government and to you. Also, even if you're not 1099'd (you made less than $600), that money is still deducted from that company's income as an expense so any disparity there is obvious too. If they summed up all the money companies paid out in salaries/commissions/etc. and then how much income was reported, do the math, then they can come up with a rough estimate of how much is underreported. 1099 and W2 information is sent to the government and to you. Also, even if you’re not 1099′d (you made less than $600), that money is still deducted from that company’s income as an expense so any disparity there is obvious too.

If they summed up all the money companies paid out in salaries/commissions/etc. and then how much income was reported, do the math, then they can come up with a rough estimate of how much is underreported.

]]> By: Anon http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html/comment-page-1#comment-4138 Anon Fri, 17 Feb 2006 16:36:21 +0000 http://www.bargaineering.com/articles/2001-tax-shortfall-was-345-billion.html#comment-4138 How exactly do they know how much income was underreported? They don't, of course; they are just making it up. And we are supposed to feel bad? How exactly do they know how much income was underreported? They don’t, of course; they are just making it up. And we are supposed to feel bad?

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