Quality Bookkeeping can represent clients to the state, with given permission. In cases of entity identity issues, licensing issues, sales tax, or creation of entity.
By Nadine Mickey
Recently I’ve been reading, and learning, about the tax processes and came across some interesting information. I’m quoting the text so there can be no mistake that the information is skewed in any manner. Let me also add that this information is based on reports from 2011.
“The total number of federal tax returns filed in 2011 was 234,567,000, of which 143,608,000 were filed by individual taxpayers. The IRS conducted examinations of 1,724,728 returns, and on the basis of these examinations, it recommended additional tax and penalties of $43.6 billion.” Yes, that’s billion.
It’s true that individual returns made up the bulk of those audits, and I quote again, “(1,564,690)”. Those audits resulted in $14.65 billion in total recommended collections. Even though individual audits were a higher percentage than corporate audits, the corporate audits yielded $25.6 billion. Of course corporations are larger, when a mistake on those tax returns is made, it can be much more expensive than individuals.
We all know why the IRS performs audits, they are the collection agency for the Federal Government to keep our country operating and, I might add, to keep us on the straight and narrow but, that is not what this little blog is about. The interesting information is the total of collections, and the differences from 1980 to 2010 and 2011. I would write out the numbers for those that are numbers challenged but, it would literally take up too much room for a little blog.
This is a comparative from 1980 to 2010 and 2011, is net of refunds, and includes personal and business:
The increase from 1980 to 2011 was a staggering $1,479,696,494! That is One Billion, Four Hundred Seventy Nine Million, Six Hundred Ninety Six Thousand, Four Hundred Ninety Four. I’ll try and find current numbers for the next blog for another comparison.
The percentage of the difference is 284.90%. Much of this is due to population growth and other factors that I won’t go in to. It’s understandable that the country needs tax dollars for systems to function accordingly. I certainly won’t go in to the politics of it! That’s another profession altogether.
Doesn’t it make you wonder where all of that money goes though? I believe an accounting of all of that money would yield some very interesting information!