The Society of American Florists (SAF) is working with small-business groups to ensure that any Internal Revenue Service (IRS) proposals to address the tax gap are not unfair to small business. The tax gap is the difference between what the federal government is owed and what it collects, and the amount is disputed. Some say it is as high as $345 billion, while others say it is $290 million.
Last month, the House Ways and Means Committee held a hearing on the issue. The administration’s budget for 2008 includes a provision to make new regulations that could affect many SAF members. Congress is pressuring the IRS to do better than the collection rate of 86 percent in order to find the funds they want and reduce the deficit. The IRS believes that much of the uncollected taxes are due to underreported business income from small firms.
The following proposals concern small businesses:
SAF has joined the Coalition for Fairness in Tax Compliance, which is dedicated to working with the administration and Congress, to help improve tax compliance in a less intrusive and burdensome way.