Corporate Accountability Tax Gap Act of 2005

The Corporate Accountability Tax Gap Act of 2005 (H.R. 1234) would require publicly traded corporations to disclose specific financial information from their tax returns to the public. This includes reporting their actual taxable income, the amount of corporate income tax paid, and explanations for any discrepancies between the profits reported to shareholders and the income reported to the IRS. Additionally, the bill directs the Department of the Treasury to conduct a formal study on the use of corporate tax shelters.

For the average citizen, this legislation aims to increase transparency regarding how much large corporations contribute in taxes compared to their reported earnings. By making this data public, the bill seeks to provide greater oversight of corporate tax practices and identify potential gaps in tax collection. The bill was introduced in March 2005 and referred to the House Committee on Ways and Means, but it did not advance further during that session of Congress.