Tax Administration:

Estimates of the Tax Gap for Service Providers

GGD-95-59: Published: Dec 28, 1994. Publicly Released: Dec 28, 1994.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO provided information about the income tax gap for self-employed individuals for tax year 1992, focusing on: (1) nonfarm sole proprietors who provided services; and (2) service providers who may have been misclassified as self-employed.

GAO found that: (1) the Internal Revenue Service (IRS) considered about 9.2 million to 11.5 million nonfarm sole proprietors as potential service providers for tax year 1988; (2) IRS estimated that the income tax gap for nonfarm service providers ranged from $21 billion and $30.3 billion for 1992, which was 56 to 81 percent of the total tax gap for all nonfarm sole proprietors who filed a return; (3) informal suppliers accounted for the largest single portion of the income tax gap for sole proprietors; (4) between 0.2 million and 1.6 million of the 11.5 million service providers may have been misclassified employees; and (5) between $2 billion and $3.5 billion was associated with potentially misclassified workers.

May 18, 2017

May 17, 2017

Apr 27, 2017

Apr 26, 2017

Mar 8, 2017

Jan 31, 2017

Jan 27, 2017

Jan 9, 2017

Sep 13, 2016

Sep 6, 2016

Looking for more? Browse all our products here