How Much Money Did the IRS Collect in 2006?

8/14/2019 How Much Money Did the IRS Collect in 2006?

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How much money did the IRS collect in 2006?

Keep in mind that the IRS reports their statistics based upon the Federal Fiscal Year, which runs from

October 1 - September 30.

For FY2006 (October 1, 2005 - September 30, 2006) the IRS collected $2,518,680,230,000 (2.5

Trillion-ish)

Tax collection statistics

Summary of Collections before Refunds by Type ofReturn, Fiscal Year 2006

Type of Return Number of ReturnsGross Collections

to the nearest million US$

Individual Income Tax 133,917,068 1,236,259,000,000

Employment Taxes 31,182,071 814,819,000,000

Corporate Income Tax 2,453,741 380,925,000,000

Excise Taxes 942,145 57,990,000,000

Estate Tax 58,279 26,717,000,000

Gift Tax 255,651 1,970,000,000

Total 168,808,955 2,518,680,000,000

During Fiscal Year (FY) 2006, the IRS collected more than $2.2 trillion in tax net of refunds, about 44

percent of which was attributable to the individual income tax. This is partially due to the nature of the

individual income tax category; containing taxes collected from working class, small business, self

employed, and capital gains. Of the Individual Income Tax, the top 5% of income earners pay

60% of this amount


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Recently, the IRS has altered its policies. The current Service plus Enforcement equals Compliance

motto has led to more investigations of abusive tax schemes.

As of 2007, the agency estimates it is owed $300 billion more than it collects.[11]

CriticismThe fact is, that ALL of the money collected by the IRS goes to Private Banks to service loans to the

govt. 100% all the income tax you give goes to the pockets of private bankers. A grand illusion is

most Americans believe all the income tax goes to pay for the running of the country. NOT>>

The money to run the govt, comes from private banking institutions, who loan money to the govt. Its

absurd. Its a huge ponzi scheme. Trumps Madoff.

So the answer to the question "How much does the IRS collect each year?" is that it doesn't matter.

Its ALL thievery. No matter if its 100 million or $1000 billion, its robbery, plain and simple.

Until this robbery is stopped, it will be very difficult for America to be free again.(General answer by some person on internet)

Duties and Powers

The IRS is responsible for enforcing the Internal Revenue Code (U.S.C.A. tit. 26), which codifies all

U.S. tax laws. Basic IRS activities include serving and educating taxpayers; determining, assessing,

and collecting taxes; investigating individuals and organizations that violate tax laws;

determining pension plan qualifications and exempt organization status; and issuing rulings and

regulations to supplement the Internal Revenue Code.

Historically, Congress has given the IRS unique and wide-ranging powers for administering the U.S.

tax system and enforcing its laws. For example, while in a criminal proceeding the government has the

burden to prove that the defendant is guilty beyond a reasonable doubt, in a tax proceeding the

burden is on the taxpayer to prove that he or she does not owe the amount claimed by the IRS. The

IRS also has the power to impose civil penalties for any of a number of violations of tax law. These

penalties are seldom employed, however, and with respect to penalties, the IRS bears the burden of

proving that the penalty is justified.

The IRS has the power to collect large amounts of information on U.S. citizens, companies, and other

institutions. The most obvious example of this power is that each year all taxpayers must file tax

returns containing detailed financial and personal information. Many organizations are also required tonotify the IRS of any payments they make to individuals; the IRS receives approximately 1 billion of

these third-party reports annually. The IRS also has the legal authority to order banks, employers,

and other institutions to provide information about a taxpayer without having to obtain a warrant from

a judge; other law enforcement agencies, such as the Federal Bureau of Investigation and local police

forces, must obtain a warrant in such situations.

Another crucial power of the IRS is the ability to withhold taxes automatically from employee

paychecks. The IRS was given this authority in 1943, when Congress passed legislation requiring


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employers to withhold from employees' paychecks the income taxes owed to the government. This

withholding requirement was one of several actions taken by the government to increase revenue so

that it could meet the huge financial requirements for fighting World War II. Today, automatic

withholding accounts for the majority of tax dollars paid to the government, with only a small portion

sent in with tax returns by April 15, the IRS's annual tax deadline. Automatic withholding is important

to the government because it enables it to receive a steady stream of tax revenue. It is also useful for

enforcing voluntary compliance from taxpayers, because the individual's tax burden seems

Article regarding powers of IRS n guidance for general American

In 1988, real estate tycoon Leona Helmsley faced a prison term for defrauding the U.S.government of $1 million in personal income taxes. Most of the time, the IRS does not have to putanyone in jail for failure to pay; a notice of intent to lien or to seize property sure gets everyonesattention.

The IRS may seize your wages, bank accounts, IRAs, 401(k)s and real estate. The tax codedescribes a right to seize a taxpayers right, title, and interest in goods or properties, which of

course is a very broad grant of power. If the IRS is intent on attaching a lien to your property, theywill file with the county recorder where the real estate is located.

Once you receive notice of a possible lien or seizure, you need to act immediately. You have only10 days to respond. If you believe that the IRS claims are wrong, then you need to file the mostappropriately named IRS form of all time: Form 911 - the taxpayer assistance form, or thecollection appeal form - 9423. Even in the midst of a huge power grant to the IRS, you are entitledto protection of your constitutional rights, and you also may file a due process claim if you choose(Form 12153).

For some qualified good news, there are strict standards about how much (or how little) of yourmoney is immune to IRS liens. Federal law requires that no one be forced into homelessness,abject poverty, or an inability to support his or her children because of tax debt. On the otherhand, the amount of money shielded from an IRS lien is not very high. You can see these specificamounts by visiting:

There are also limits on what the IRS is willing to seize based on practical considerations. Forexample, filing bankruptcy usually will halt most types of foreclosures for a certain period oftime. Similarly, homestead exemptions protect at least some equity in a primary residence. Butpersonal items that are owned free and clear, or property with high equity like vacation or secondhomes, are especially at risk. Prior to seizure, the IRS will consider your transactions and transfersof assets that have occurred within the last year. The possibility that you may be hiding assets byminimal sale prices may expose all participating parties to investigation, penalties, and perhapseven criminal charges.

Computer technologies have led to increased interdependence between state and federal budgettransfers. The IRS often will submit to certain agreements to honor state tax debts against federaltax refunds. Now there is the Federal Payment Levy Program (FPLP), which allows the IRS toattach certain disbursals, otherwise due to taxpayers, from the U.S. Treasury. If a taxpayer isowed a check for federal retirement benefits, as a federal contractor, for some federal salaries,and even for some social security benefits, the payment may be intercepted by the IRS.


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Ultimately, the power utilized by the IRS via computer tracking and the ability to find your assetsmakes it a very smart idea for you to look for relief to your tax troubles, such as by way of apayment plan.

Before accepting any IRS decision to withhold a lien or to settle a tax debt, you must understandyour basic rights and the terms of your agreement. For example, many liens follow from audits of

personal records, and penalties almost always are added to any negative findings of tax liabilities.Audits often uncover the most innocent of errors, and you have a right to ask that these penaltiesbe removed. Furthermore, the penalties of your agreement may be worse than the lien.

If you are being pressured too heavily by the IRS, you are not alone. There are tax advocatesavailable in every state to hear cases of undue hardship. You can find an advocate by calling 1-877-777-4778.

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How Much Money Did the IRS Collect in 2006?