IRS Says Americans Underpaid Taxes by $385 Billion in 2006
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The Internal Revenue Service estimates that U.S. companies and individuals failed to pay $385 billion in taxes they owed in 2006, an increase from $290 billion five years earlier.
The agency said the rate of compliance remained almost unchanged at 85.5 percent, down slightly from 86.3 percent in 2001. The IRS announcement today is the first update to the so-called tax gap estimate in five years. The gap grew because the income base expanded between 2001 and 2006, the agency said.