The Resource Tax gap : actions that could improve rental real estate reporting compliance : report to the Committee on Finance, U.S. Senate, [GAO contact, James White]

Tax gap : actions that could improve rental real estate reporting compliance : report to the Committee on Finance, U.S. Senate, [GAO contact, James White]

Label
Tax gap : actions that could improve rental real estate reporting compliance : report to the Committee on Finance, U.S. Senate
Title
Tax gap
Title remainder
actions that could improve rental real estate reporting compliance : report to the Committee on Finance, U.S. Senate
Statement of responsibility
[GAO contact, James White]
Title variation
  • Rental real estate reporting compliance
  • Actions that could improve rental real estate reporting compliance
Creator
Contributor
Author
Subject
Genre
Language
eng
Summary
  • As part of its most recent estimate of the tax gap, for tax year 2001, the Internal Revenue Service (IRS) estimated that individuals underreported taxes related to their rental real estate activities by as much as $13 billion. Given the magnitude of underreporting, even small improvements in taxpayer compliance could result in substantial revenue. GAO was asked to provide information on rental real estate reporting compliance. This report (1) provides information on the extent and primary types of taxpayer misreporting of rental real estate activities and (2) identifies challenges IRS faces in ensuring compliance and assesses options for increasing compliance. For estimates of taxpayer misreporting, GAO analyzed a probability sample of examination cases for tax year 2001 from IRS's most recent National Research Program (NRP) study of individual taxpayer compliance. At least an estimated 53 percent of individual taxpayers with rental real estate misreported their rental real estate activities for tax year 2001, resulting in an estimated $12.4 billion of net misreported income. This amount of misreporting is understated because IRS knows it does not detect all misreporting during its NRP examinations and adjusts the amount of misreporting it detects to estimate the tax gap. Also, the rate of misreporting of rental real estate activity was substantially higher than for some other sources of income, such as wages, a disparity that undermines the fairness of the tax system. Misreporting of rental real estate expenses was the most common type of rental real estate misreporting. Limited third-party information reporting for rental real estate activity is among the challenges IRS faces in ensuring compliance for rental real estate reporting. While information reporting, such as financial institutions sending information to IRS about taxpayers' mortgage interest payments, improves compliance, it is not practical to implement and enforce broad, new information reporting
  • Requirements for rental real estate activities. However, improving existing information reporting requirements is one of various options that could improve compliance. For example, based on current law, whether rental real estate property owners must file information returns for certain expenses they incur depends on whether the owners' rental activities are considered a trade or business, but the law does not define how to make this determination. Another approach to improving compliance is to require taxpayers to report additional detail about their rental real estate activities on tax returns. For example, requiring taxpayers to report complete property address information, which GAO found that some taxpayers did not report, could help IRS address misreporting. Requiring additional detail on tax returns could also compel paid tax return preparers, used by about 80 percent of individual taxpayers who report rental real estate activity, to obtain more accurate information from taxpayers. Enhanced IRS guidance, such as on required recordkeeping, and additional IRS outreach to paid preparers and others about rental real estate misreporting could also improve compliance
Member of
Cataloging source
UMI
http://bibfra.me/vocab/lite/collectionName
ProQuest U.S. Congressional Research Digital Collection
http://library.link/vocab/creatorName
White, James
Government publication
federal national government publication
Index
no index present
LC call number
KF49
LC item number
.C59 CMP-2008-GAO-0399 ONLINE
Literary form
non fiction
Nature of contents
  • dictionaries
  • bibliography
http://library.link/vocab/relatedWorkOrContributorName
  • United States
  • United States
Series statement
Committee print
http://library.link/vocab/subjectName
  • Income tax
  • Tax evasion
  • Taxpayer compliance
Label
Tax gap : actions that could improve rental real estate reporting compliance : report to the Committee on Finance, U.S. Senate, [GAO contact, James White]
Instantiates
Publication
Note
  • Committee print
  • Record is based on bibliographic data in ProQuest U.S. Congressional Research Digital Collection. Reuse except for individual research requires license from ProQuest, LLC
Antecedent source
mixed
Bibliography note
Includes bibliographical references
Carrier category
online resource
Carrier category code
cr
Carrier MARC source
rdacarrier
Color
black and white
Content category
text
Content type code
txt
Content type MARC source
rdacontent
Contents
CMP-2008-GAO-0399
Control code
cmp200405052
Dimensions
unknown
Extent
1 online resource (ii, 44 pages)
File format
one file format
Form of item
online
Level of compression
mixed
Media category
computer
Media MARC source
rdamedia
Media type code
c
Other physical details
digital, PDF file
Quality assurance targets
present
Reformatting quality
preservation
Reproduction note
Electronic reproduction.
Specific material designation
remote
System control number
cmp200405052
System details
System requirements: PDF reader software
Label
Tax gap : actions that could improve rental real estate reporting compliance : report to the Committee on Finance, U.S. Senate, [GAO contact, James White]
Publication
Note
  • Committee print
  • Record is based on bibliographic data in ProQuest U.S. Congressional Research Digital Collection. Reuse except for individual research requires license from ProQuest, LLC
Antecedent source
mixed
Bibliography note
Includes bibliographical references
Carrier category
online resource
Carrier category code
cr
Carrier MARC source
rdacarrier
Color
black and white
Content category
text
Content type code
txt
Content type MARC source
rdacontent
Contents
CMP-2008-GAO-0399
Control code
cmp200405052
Dimensions
unknown
Extent
1 online resource (ii, 44 pages)
File format
one file format
Form of item
online
Level of compression
mixed
Media category
computer
Media MARC source
rdamedia
Media type code
c
Other physical details
digital, PDF file
Quality assurance targets
present
Reformatting quality
preservation
Reproduction note
Electronic reproduction.
Specific material designation
remote
System control number
cmp200405052
System details
System requirements: PDF reader software

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