IRS Reports Huge Gap in Taxes Owed and Paid
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The IRS said unpaid taxes amounted to $345 billion in 2001, traced mostly to individuals underreporting their income.
The statistic refines an estimate released last year that found that taxpayers failed to pay $312 billion to $353 billion in 2001.
The study showed taxpayers more likely to report their income when an employer, banker or other party must separately submit the information to the Internal Revenue Service. The study found only a 1% error rate among individuals reporting wages, salaries or tips.
The error rate proved much higher, however, among individuals reporting income from a business.
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