AICPA Tax Insider

Since the early 1980s, there has been a plethora of recommendations about how to reduce the tax gap. Many changes have been enacted, yet the gap grows. Proposals requiring additional information reporting or withholding are usually overlooked despite evidence that these techniques result in a low tax gap for wage earners. However, a significant information reporting rule was enacted in 2008. Its enactment though, seems to be more a result of its revenue potential than its role in a comprehensive tax gap reduction strategy.

Below, we'll review… more

As far back as 1872, when Montgomery Ward issued its first mail-order catalog, vendors have sold to customers without being physically present in the customer’s state. Although sales taxes have existed since the 1920s, we have no effective system for collecting sales-and-use tax on sales by remote sellers.

Today we’ll look closer at the history of the remote sales tax issue, clarify New York’s law change and note possible solutions.

As a 1965 congressional report noted: “The present system of State taxation as it affects… more

A Department of Labor retirement guide notes: “For many Americans, retiring in this new century is a mystery.” They’re living longer, they’re more personally responsible for their own retirement savings and they have many more savings options than previous generations did, which exacerbate the confusion. In June 2008, a House Ways and Means Subcommittee hearing explored options for expanding IRA participation. This article presents data about the mystery and IRA participation, highlights of the hearing and considerations for reform.

For general information about… more

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.