Why the IRS is Ratcheting Up Collection Efforts THE FACTS ABOUT ENFORCEMENT What the IRS is Owed What the IRS is Payed The Tax Gap = $496 billion The Bottom Line Total tax dollars the IRS is owed per year Total amount of tax dollars the IRS receives per year $2.494 trillion $2.038 trillion The difference between what the IRS is owed in taxes and what they are paid • Approximately 20% of total tax dollars the IRS is owed are not being paid Because the IRS is underpaid by nearly half a trillion dollars per year, they are taking swift action to reclaim those tax dollars. The effectiveness of 2018’s penalty notices indicates these numbers will continue to grow, especially since e-filing has made it even easier for the IRS to identify reporting errors. In 2018 alone the IRS distributed 3 million penalty notices resulting in $30.2 billion in recovered income. $496B Gap LEARN MORE: www.sovos.com $2.03T Paid Reasons the tax gap exists: Under-reporting income Over-reporting credits Underpayment of taxes owed Not filing all This could mean steep penalties for your business if you fail to meet the latest regulations. How Sovos Can Help Learn how Sovos helped Nationwide cut penalties by 34% despite the IRS’s increased enforcement.Next >