HOUSTON, Feb. 8, 2012 (GLOBE NEWSWIRE) -- TaxMasters, Inc. (OTC:TAXS), a nationwide provider of tax services including a full suite of compliance and repayment services, today cited a recent IRS report showing that the gross tax gap estimates for tax year 2006 was $450 billion compared to $345 billion in 2001. The U.S. tax gap is defined as the amount of tax liability faced by taxpayers that is not paid on time.
TaxMaster's analysis predicted a 2006 tax gap of $449.4 billion in April 2011, essentially matching the actual $450 billion reported. The company calculated the tax gap by converting the 2001 gap to a percentage of GDP, then applying that same percentage to later years. This shows that the tax gap remained constant as a percentage of GDP meaning that as the GDP grows, so will the tax gap according to this model and historically, from 1947 until 2011 the United States' average quarterly GDP growth was 3.28 percent. According to the TaxMasters Tax Gap model, the market for tax year 2010 is $491.7 billion.
"What our analysis shows is that regardless of IRS's efforts to close the tax gap, it continues to grow at a rate that we predicted. The GDP is continuously growing and as the GDP grows, so does the tax gap, hence the need by Americans for tax representation services. This means that our market is continually growing and we are continuously working to optimize our sales and marketing efforts in order to maximize our market share. We are constantly working to develop effective training for our technical staff to maximize the results achieved on behalf of our clients," commented CEO of TaxMasters, Patrick Cox.
About TaxMasters, Inc.
TaxMasters, Inc. is the first publicly traded tax representation firm in the United States. Started by Patrick R. Cox in 2001, TaxMasters offers a full suite of compliance and repayment services to taxpayers across the country facing seemingly insurmountable tax problems and substantial federal tax debt. Tax services from TaxMasters include IRS consultations, tax return preparation, settlement analysis, and assistance with IRS automated collections, Revenue Officer involvement and collection due process.
For more information about TaxMasters, Inc. and its commitment to help taxpayers in the United States solve tax problems, please visit www.txmstr.com.
Forward-Looking Statements
Any forward-looking statements, as defined in the Securities Exchange Act of 1934, in this release (often identified by such words as "believes," "expects," "beginning," "intended," "planned") regarding future expectations, objectives, and plans for TaxMasters, Inc. are based on opinions and estimates of management at the time the statement was made. Various known and unknown factors may cause actual results to be materially different from the expected outcomes. TaxMasters, Inc. does not, as a matter of policy, update or revise forward-looking statements. Actual results may vary materially.