AICPA Tax Insider

Hundreds of billions of tax dollars go uncollected each year at the federal and state levels. Legislators and tax administrators are pursuing ways to understand the reasons better and to implement techniques for reducing the tax gap. Here are some ways that property transactions of individuals can contribute to the tax gap and what strategies Congress and the IRS might pursue to address the problem.

The annual federal tax gap is estimated to be about $345 billion. States also… more

States lose significant amounts of revenue annually because many individuals and businesses fail to pay their use tax. In response, states are increasing collection efforts that may catch some taxpayers and their preparers by surprise. California lawmakers found that many paid tax preparers ignore client-use tax obligations. Penalties and interest are potentially due when this tax is not paid. Practitioners who aren’t already helping clients to be use tax compliant should take steps now to address this matter.