United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office General Government Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1994-12-28 monographic deposited born digital 35 p. GA 1.13:GGD-95-59 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-95-59 P0b002ee18039fd15 f:gg95059 DGPO 2010-08-12 2011-03-28 GAOREPORTS-GGD-95-59 machine generated eng fdlp REPORT GAOREPORTS-GGD-95-59 GGD-95-59 Tax administration Noncompliance Tax nonpayment Tax evasion Contractors Income taxes Service industry Tax law IRS Taxpayer Compliance Measurement Program TCMP Letter Report GGD This report provides information on the tax gap for sole proprietors--that is, self-employed persons. The gross income tax gap refers to the difference between the amount of income taxes owed and the amount voluntarily paid. GAO pegs the tax gap at $21 billion for 9.2 million nonfarm sole proprietors who claimed no cost of goods sold on their returns. GAO estimates the tax gap at $25.1 billion for 10.3 million nonfarm sole proprietors whose reported cost of goods sold, as a percentage of gross receipts, were at or below the average reported by all sole proprietors in the same industry. GAO estimates the tax gaps at $30.3 billion for 11.5 million nonfarm sole proprietors who were primarily service providers. This group includes all the sole proprietors covered in the second group. Of this $30.3 billion tax gap, IRS also estimated that between $2 billion and $3.5 billion was associated with potentially misclassified workers. These estimates included only service providers who received all their self-employment income from one business. The $3.5 billion figure included all such service providers. The $2 billion figure included only those receiving $20,000 or more from one payer. https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-95-59/html/GAOREPORTS-GGD-95-59.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-95-59/pdf/GAOREPORTS-GGD-95-59.pdf GAO/GGD-95-59 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-95-59 Letter Report GAO/GGD-95-59; Tax Administration: Estimates of the Tax Gap for Service Providers; Tax administration Noncompliance Tax nonpayment Tax evasion Contractors Income taxes Service industry Tax law IRS Taxpayer Compliance Measurement Program TCMP