Welcome to TaxBlawg, a resource from Chamberlain Hrdlicka for news and analysis of current legal issues facing tax practitioners. Although blawg.com identifies nearly 1,400 active “blawgs,” including 20+ blawgs related to taxation and estate planning, the needs of tax professionals have received surprisingly little attention.
The Wall Street Journal's Tax Blog gives “tips and advice for filers,” and Paul Caron’s legendary TaxProf Blog is an excellent clearinghouse for academic and policy-oriented news. Yet, tax practitioners still lack a dedicated resource to call their own. For those intrepid souls, we offer TaxBlawg, a forum of tax talk for tax pros.
Chamberlain Hrdlicka Blawgs
In February 2010, the IRS began a study to estimate the tax gap for underreported employment taxes and determine compliance rates for business taxpayers, the first study of its kind since 1984. The National Research Project intended to be a comprehensive review of 6,000 taxpayers over a three year period. The goal was data collection to find ways to reduce noncompliance and chip away at the current $345 billion tax gap of which underreported employment taxes account for $54 billion, almost one-fifth of the total of underreported liability.
On July 7, 2011, the Treasury Inspector General for Tax Administration released a report that concludes that the sample size used by the IRS to determine the tax gap for employment taxes will likely not be sufficient to measure compliance. TIGTA recommended that the IRS outline its strategy for updating employment tax gap estimates, focus its resources on the areas with the most noncompliance, calculate the percentage not covered by the study, and determine whether that population should be included in the next similar employment return study. The IRS agreed with all the recommendations