Released on = April 24, 2007, 5:42 am

Press Release Author = Walt Lecter/Carlton Hedges & Associates

Industry = Financial

Press Release Summary = Carlton Hedges & Associates have completed a review of an
Internal Revenue Service (IRS) research project and have outlined 14 opportunities
for IRS to identify and collect more unpaid taxes.

Press Release Body = Carlton Hedges & Associates have looked at the National
Research Project that IRS launched to see how many taxpayers underpaid or overpaid
Federal taxes in 2001.

Carlton Hedges & Associates reviewed IRS files to see where the most taxpayers
willfully or mistakenly misreported their tax obligations. Improving reporting in
these areas will help the IRS bring in more of the $345 billion in taxes that go
unpaid each year, a loss known as the tax gap.

According to Carlton Hedges & Associates, areas of individual taxpayer noncompliance
that are promising targets for additional research to improve reporting compliance
include: income/losses from partnerships and S corporations, income/losses from
rental real estate, sole proprietor income/losses, income/losses from farming, other
income - net operating losses, gambling income/losses, capital gains for assets
other than securities, other gains/losses, Earned Income Tax Credit, Additional
Child Tax Credit, deduction for charitable contributions, deduction for medical and
dental expenses, deduction for job expenses and most other deductions, and
exemptions.

These areas are types of tax deductions and exemptions where taxpayer mistakes or
deliberate fraud caused a significant loss - where taxpayers reported the wrong
amounts by more than five percent or by more than $450 each, or where the total
amount of misreporting among all taxpayers in that area topped $3 billion.

Carlton Hedges & Associates findings offer IRS a real opportunity to improve
compliance with our tax laws, just as the Finance Committee has said they should,"
said Walt Lecter, spokes person for Carlton Hedges & Associates. "Better customer
service can help taxpayers avoid the mistakes found most frequently, so honest
Americans can pay their taxes properly and on time. More effective enforcement can
stop those who actively seek to defraud their fellow Americans by willfully
misreporting the deductions and exemptions they're due."

Walt Lecter continued by saying "Taxpayers need to pay what they owe, not a penny
more, not a penny less. The more we can drill down on the reasons for overpayment or
underpayment, the more fairness we can add to the system and the more compliance
we'll achieve. Identifying the tax gap's causes and focusing IRS enforcement on
those causes will shift any undue attention on honest taxpayers, allowing them to
continue complying with the law."

Carlton Hedges & Associates also found that the IRS's overall estimate of the tax
gap, and opportunities to improve compliance with tax laws, would be helped by
better technology and information storage. Paper storage of some files, as opposed
to electronic storage, makes tax data from the National Research Project harder to
assess.

Carlton Hedges & Associates provides financial advisory services to wealthy
individuals and families, select endowments, and corporate clients. Their
independent, fee only, conflict free \"open architecture\" consulting service combines
a blend of independence, tax awareness and extensive intellectual resources. Carlton
Hedges & Associates today is one of the best-recognized open architecture firms
advising clients on their investment portfolios and other wealth management issues.

With expertise in the Investment Banking industry, Carlton Hedges & Associates can
help you meet the challenges of wealth investment. Carlton Hedges & Associates is a
professional financial advisory and venture capital firm with expertise in Mergers
and Acquisitions, Investment Banking, Emerging Growth Companies, and Specialized tax
advisory services. Carlton Hedges & Associates provides powerful solutions for
growing your wealth in a complex market.


Web Site = http://

Contact Details = Walt Lecter
Carlton Hedges & Associates
44 Wall Street
New York
USA
Tel: +1-718-732-2850