 Private Sector Data Can Help Close the Tax Gap |
The U.S. General Accountability Office (GAO) released last week a report entitled "IRS Has Modernized Its Business Nonfiler Program but Could Benefit from More Evaluation and Use of Third-Party Data." Like many states, the IRS has trouble estimating and closing the business non-filer tax gap. The GAO study begins to look at how D&B's Tax Compliance Solutions can increase revenue and improve efficiency.
The GAO Report noted, "Private sector data could be useful in identifying active businesses that IRS has not identified as non-filers."
With shrinking resources and more taxpayer and external source data than states can actively manage, tax agencies could benefit from D&B's Tax Compliance Solutions to streamline efforts and improve results.
For more information, contact government@dnb.com
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| U.S. Business Trends Report-October 2010 |
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D&B provides an analysis of and insight from recent failure, bankruptcy and delinquency trends through second quarter on 27 million U.S.-based businesses. The economy continues to recover from the deep recession of 2008/2009. This has led to improved business confidence and trading conditions. However, businesses will continue to face high levels of uncertainty and risk.
Here are some highlights:
Insight 1: Business bankruptcies are still growing but at a slower pace compared to a year ago. Business failures have actually registered a decline in the 12 months ending in June 2010 compared to 12 months ending in June 2009.
Insight 2: Overall U.S. business failure rates have improved in the past 12 months, however; the Transportation, Construction and Manufacturing industries failure rates remain 40%-80% higher than the U.S. average.
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Insight 3: Percentage of delinquent dollars is showing a decline in past three months, and seems to have stabilized over the past year indicating businesses are finding it easier to pay their lenders and suppliers. This is a very important leading indicator. However, the percentages are still much higher than the pre-recession level indicating continuing difficulty.
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Failure Trends by State
States with Highest Failure Rates |
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Due to the continued residential housing instability and the steep drop-off in the hospitality sectors, Nevada and California failure rates still rank among the highest.
States with Lowest Failure Rates
Lower failure rates in Mississippi, Iowa and Louisiana reflect the predominantly stable presence of agriculture in those more rural states.
Click here to read full report on the U.S. Business Trends Report - October 2010.
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