One sixth of Americans will contribute to tax gap for 2010 tax year

On Monday, April 18, at 11:50 pm EDT, the U.S. tax filing deadline passed and estimates show that over 16 percent of Americans will have failed to file their 2010 federal tax returns, report their full income, or pay their full 2010 tax liability, costing the federal government upwards of $490 billion in revenue for the 2010 tax year.

"During a time of contentious fiscal debate in Washington, D.C. over the mounting deficit and needed funding for our country, it is not only the legal obligation of taxpayers but perhaps their most important patriotic duty to pay the IRS the money they legally owe," said Patrick Cox, CEO of TaxMasters, a publicly-traded tax compliance and repayment services provider.

Cox adds, "Although tax filing can be a stressful and time-consuming process, taxpayers need to remember that their returns support our soldiers fighting overseas, pay for police and fire programs in our communities, and provide us with the clean water and utilities we often take for granted. By choosing not to pay taxes and comply with IRS guidelines, these free riders are costing us all."

TaxMasters advises those who have missed the April 18th deadline to contact a local CPA or tax representative to help prepare your returns and promptly file with the correct deductions and statements, in order to help avoid any further penalties or interest. If you have not filed in three or more years, or are being contacted directly by an IRS collection agency for significant amounts owed, TaxMasters recommends seeking professional help from a tax representation firm.

"If you choose to take on the IRS independently, they will assume you know all of your options and hold you accountable for whatever you agree to. A tax representative can ask the questions and execute on options you might not be aware of," says Cox. "The best strategy is to get your files in order months before the filing deadline and stay in compliance with the IRS, to help not only your own financial future, but the well being of the country."
 

You may like these other stories...

Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the mudslide in Oso, Washington. The loss of human life was...
Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...
IRS chief: New rule on the way for tax-exempt groupsIRS Commissioner John Koskinen told the USA Today on Monday that the agency will likely rewrite a proposed rule regulating the political activities of nonprofit groups to...

Upcoming CPE Webinars

Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.