Tax Gap

This is the spread between what the IRS collects and what it thinks it should be collecting. The IRS reported the tax gap is now estimated to be $496 billion because of omitting income, underreporting income, overstating deductions and credits, and simply failing to make tax payments. What does this mean? With the increase in IRS staffing due to $80 billion in multi-year funding, expect to see a rise in audits. Will small businesses become prime targets? #IdeaoftheDay