• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Social Security's 2032 deadline puts a 22% cut on the table — but Washington has way less room to negotiate than 1983

2

Boomers actually do hold most of the wealth and power. So why do they call it 'whiny' to point that out?

3

Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns

1

Social Security's 2032 deadline puts a 22% cut on the table — but Washington has way less room to negotiate than 1983

2

Boomers actually do hold most of the wealth and power. So why do they call it 'whiny' to point that out?

3

Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns
FinanceTaxes

Here’s How Much Tax Cheats Cost the U.S. Government a Year

By
Chris Matthews
Chris Matthews
Down Arrow Button Icon
By
Chris Matthews
Chris Matthews
Down Arrow Button Icon
April 29, 2016, 8:18 AM ET
US-ARCHITECTURE-IRS BUILING
Photograph by Brendan Smialowski — AFP/Getty Images

Who says crime doesn’t pay?

According to new estimates issued Thursday by the Internal Revenue Service, tax evasion is a pretty lucrative business, costing the federal government on average $458 billion per year between 2008 through 2010. That’s a slight increase from the previous estimate, issued in 2006, of $450 billion. The feds call that dollar figure the “tax gap” and say the rise is the result of better measurement rather than Americans engaging in more tax evasion.

Ultimately, the tax collectors at the I.R.S. think they will recover about $52 billion of that lost revenue, resulting in a net tax gap of $406 billion annually. The service also estimates the voluntary compliance rate, which is a measurement of the total taxes paid relative to total taxes owed. By this measure 81.7% of taxes owed find their way to the I.R.S. on time.

The estimates come at a time when the I.R.S. has been facing budget and staff cuts, which the agency says have impeded its ability to maximize revenue. They also come during a time of heightened public awareness over the issue of tax evasion, with the recent publication of the “Panama Papers,” which are leaked documents from a Panamanian law firm that showed how some wealthy Americans have used offshore companies to hide money from the I.R.S.

About the Author
By Chris Matthews
See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

Trump says a deal has been reached with Iran and orders end to U.S. naval blockade as Hormuz to reopen — ‘Ships of the World, start your engines’
PoliticsIran
Trump says a deal has been reached with Iran and orders end to U.S. naval blockade as Hormuz to reopen — ‘Ships of the World, start your engines’
By Julia Frankel, Abby Sewell, Munir Ahmed, Will Weissert and The Associated PressJune 14, 2026
3 hours ago
Social Security faces steep cuts. These senators want to bet on stocks and $27 trillion in debt to save it—but ‘the gamble does not always pay off’
InvestingSocial Security
Social Security faces steep cuts. These senators want to bet on stocks and $27 trillion in debt to save it—but ‘the gamble does not always pay off’
By Jason MaJune 14, 2026
3 hours ago
Vietnam has bold plans for its economic future. It will need U.S. tech, capital, and speed to make them happen
CommentaryVietnam
Vietnam has bold plans for its economic future. It will need U.S. tech, capital, and speed to make them happen
By Brian McFeeters and Vu Tu ThanhJune 14, 2026
4 hours ago
Iran pushes differing versions of deal as U.S. sticks to timeline
PoliticsIran
Iran pushes differing versions of deal as U.S. sticks to timeline
By Salma El Wardany, Arsalan Shahla and BloombergJune 14, 2026
6 hours ago
Iran proved it can close the Strait of Hormuz, but the U.S. is advertising very loudly that the world’s top superpower can at least punch open a hole
EnergyIran
Iran proved it can close the Strait of Hormuz, but the U.S. is advertising very loudly that the world’s top superpower can at least punch open a hole
By Jason MaJune 14, 2026
7 hours ago
SpaceX surge further boosts Saudi billionaire prince’s fortune
InvestingSaudi Arabia
SpaceX surge further boosts Saudi billionaire prince’s fortune
By Adveith Nair and BloombergJune 14, 2026
9 hours ago

Most Popular

Social Security's 2032 deadline puts a 22% cut on the table — but Washington has way less room to negotiate than 1983
Personal Finance
Social Security's 2032 deadline puts a 22% cut on the table — but Washington has way less room to negotiate than 1983
By John W. Diamond and The ConversationJune 12, 2026
2 days ago
Boomers actually do hold most of the wealth and power. So why do they call it 'whiny' to point that out?
Economy
Boomers actually do hold most of the wealth and power. So why do they call it 'whiny' to point that out?
By Nick LichtenbergJune 14, 2026
14 hours ago
Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns
Real Estate
Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns
By Sydney LakeJune 13, 2026
2 days ago
CEO of $20 billion AI firm Perplexity says the secret to success is ‘sleeping with that fear’ that your competitor will steal your idea
Success
CEO of $20 billion AI firm Perplexity says the secret to success is ‘sleeping with that fear’ that your competitor will steal your idea
By Preston ForeJune 13, 2026
2 days ago
Iran proved it can close the Strait of Hormuz, but the U.S. is advertising very loudly that the world's top superpower can at least punch open a hole
Energy
Iran proved it can close the Strait of Hormuz, but the U.S. is advertising very loudly that the world's top superpower can at least punch open a hole
By Jason MaJune 14, 2026
7 hours ago
'It's not a jailbreak' — Research leading to U.S. export restrictions on top Anthropic models was for defense, cybersecurity CEO says
AI
'It's not a jailbreak' — Research leading to U.S. export restrictions on top Anthropic models was for defense, cybersecurity CEO says
By Jason MaJune 13, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.