213 OTHER INFORMATION (UNAUDITED)

Corporate Income Tax Liability for Tax Year 2018

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 ................................................................ 55,884 ................................ 11,595................................ 20.7%.....................................

$1 under $500................................................................ 7,829 ................................ 1,569 ................................ 20.0%..................................

$500 under $1,000 ................................................................ 4,829 ................................ 956 ................................ 19.8% ...........................

$1,000 under $5,000 ................................................................ 17,223 ................................ 3,496 ................................ 20.3% ........................

$5,000 under $10,000................................10,086 ................................................................ 2,016 ................................ 20.0% .......................

$10,000 under $25,000................................19,143 ................................................................ 3,805 ................................ 19.9% .....................

$25,000 under $50,000................................14,385 ................................................................ 2,812 ................................ 19.5% .....................

$50,000 under $100,000................................ 16,854 ................................................................ 3,294 ................................ 19.5% ...................

$100,000 under $250,000 ................................ 25,808................................................................ 4,773 ................................ 18.5% .................

$250,000 under $500,000 ................................ 26,192................................................................ 4,679 ................................ 17.9% .................

$500,000 under $2,500,000 ................................ 126,275................................20,836 ................................................................ 16.5% ..............

$2,500,000 or more ................................1,632,171 ................................................................ 184,856 ................................ 11.3% ..........................

 Total ................................................................ 1,956,679 ................................ 244,687 ...........................................................................

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 $4.5 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. For additional information on the tax gap, refer to Treasury’s financial statements.

1

Individual amounts may not add to totals due to rounding.