With state and local tax revenues falling by the largest percentage in 50 years, state and local agencies are stepping up their income, sales/ use and property tax audit activities to close at least part of the tax gap.

Please click on the link below to read how 42 states have experienced drops in their tax revenue – and the current fiscal year looks equally bleak.

In light of increased audits and possible legislative tax increases, taxpayers should review the variety of ways to reduce their state and local tax bite and make sure that they only pay their statutory fair share

http://www.cpa2biz.com/AST/AICPA_CPA2BiZ_Nav/Top/Browse/Newsletters.jsp

Also read about proposed IRS collection procedures to close the $350 billion federal tax gap.

http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2009/CorpTax/Federal_Tax_Gap.jsp

Tags: Budget Deficits, Enterprise Zone, IRS Audits, state audits, state taxes, stimulus, Tax Credits, Tax Gap, Tax Stimulus

This entry was posted on Friday, September 25th, 2009 at 8:30 am and is filed under Tax - General, Tax - State & Federal Hiring and Equipment Credits. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.