OTHER INFORMATION (UNAUDITED) 210

United States Government

Other Information (Unaudited) for the

Years Ended September 30, 2020, and 2019

Tax Burden

The Internal Revenue Code provides for progressive tax rates, whereby higher earned income is generally subject to

higher tax rates. The following tables present the latest available information on income tax and related income, deductions,

and credit: for individuals by income level, and for corporations by size of assets.

Individual Income Tax Liability for Tax Year 2018

Average

Total Average Income

Number of Income AGI Per Tax per Income

Taxable AGI Tax Return Return Tax as a

Adjusted Gross Income Returns (In millions (In millions (In whole (In whole Percentage

(AGI) (In thousands) of dollars) of dollars) dollars) dollars) of AGI

Under $15,000 .................... 32,618 40,228 591 1,233 18 1.5%

$15,000 under $30,000........ 28,782 640,648 14,894 22,259 517 2.3%

$30,000 under $50,000........ 27,528 1,078,886 49,485 39,192 1,798 4.6%

$50,000 under $100,000...... 35,146 2,507,316 186,826 71,340 5,316 7.5%

$100,000 under $200,000.... 21,146 2,878,203 320,536 136,111 15,158 11.1%

$200,000 under $500,000.... 6,906 1,971,306 327,806 285,448 47,467 16.6%

$500,000 or more................ 1,648 2,526,852 638,611 1,533,284 387,507 25.3%

 Total ............................... 153,774 11,643,439 1,538,749
 211 OTHER INFORMATION (UNAUDITED)

Corporate Income Tax Liability for Tax Year 2017

Percentage of

Income Subject Total Income Tax Income Tax After

Total Assets to Tax After Credits Credits to 

(In thousands of dollars) (In millions of dollars) (In millions of dollars) Taxable Income

Zero Assets ................................ 25,145 7,740 30.8%

$1 under $500............................. 7,611 1,514 19.9%

$500 under $1,000 ...................... 3,784 950 25.1%

$1,000 under $5,000 ................... 13,638 4,011 29.4%

$5,000 under $10,000.................. 8,617 2,727 31.7%

$10,000 under $25,000................ 12,535 4,021 32.1%

$25,000 under $50,000................ 11,831 3,809 32.2%

$50,000 under $100,000.............. 13,496 4,391 32.5%

$100,000 under $250,000............ 21,275 6,652 31.3%

$250,000 under $500,000............ 20,996 6,790 32.3%

$500,000 under $2,500,000 ......... 85,366 25,998 30.5%

$2,500,000 or more ..................... 777,981 196,257 25.2%

 Total ...................................... 1,002,275 264,860

Tax Gap

The gross tax gap is the difference between the amount of tax imposed by law and what taxpayers actually pay on time.

The tax gap provides an estimate of the level of overall noncompliance and voluntary compliance during the relevant tax

periods. Tax gap estimates provide periodic appraisals about the nature and extent of noncompliance for use in formulating

tax administration strategies. Estimating the tax gap is inherently challenging and requires assessing the merits of alternative

methods, assumptions, and data sources. There is no single approach that can be used for estimating all the components of the

tax gap, so multiple methods are used. The most recent estimates covering the Tax Year 2011-2013 timeframe were released

in FY 2019.

The gross tax gap is the amount of a tax liability that is not paid voluntarily and on time. The estimated annual average

gross tax gap is $441.0 billion. The gross tax gap is comprised of three components: non-filing, underreporting, and

underpayment. The estimated gross tax gap for each of these components is $39.0 billion, $352.0 billion, and $50.0 billion,

respectively. The gross tax gap estimates are also segmented by type of tax; individual income tax, corporation income tax,

employment tax, and estate and excise tax. The estimated gross tax gap for each of these types of tax is $314.0 billion, $42.0

billion, $81.0 billion, and $3.0 billion, respectively. 1

The net tax gap is the gross tax gap less tax that subsequently will be paid either late through voluntary payments or

collected through IRS administrative and enforcement activities and is the portion of the gross tax gap that will not be paid. It

is estimated that $60.0 billion of the gross tax gap will eventually be paid resulting in a net tax gap of $381.0 billion. The net

tax gap estimates are also segmented by type of tax; individual income tax, corporation income tax, employment tax, and

estate and excise tax. The estimated net tax gap for each of these types of tax is $271.0 billion, $32.0 billion, $77.0 billion,

and $1.0 billion, respectively.

1 Individual amounts may not add to totals due to rounding.