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Shrink the Tax Gap

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Building the IRS of the Future, Part 3 – Taxpayer Service

We continue with our series on our proposal to transform the Internal Revenue Service, one that facilitates voluntary compliance, bolstered with additional information on currently opaque income. This week we focus on taxpayer service. Over the last few months, at Congressional hearings, in the media, and likely in speaking with your friends, you have heardContinue reading “Building the IRS of the Future, Part 3 – Taxpayer Service”

Legislation is Essential to Successfully Shrinking the Tax Gap

The program that we have proposed to Shrink the Tax Gap is a 10-year effort that will require major funding, though the payoff is huge, both financially and in terms of tax fairness. Historically, the IRS has been funded year-to-year, even for their major systems modernization programs. This has led to declining year-over-year budgets forContinue reading “Legislation is Essential to Successfully Shrinking the Tax Gap”

Help Taxpayers File Accurate Returns, But Audit When They Don’t

In the previous two Blog posts, we discussed the need for additional taxpayer information and the more effective use of modern technology. Another key to shrinking the Tax Gap is how the IRS uses those additional capabilities. There are two essential aspects to this: Providing top-notch taxpayer services, and Auditing only when the likelihood ofContinue reading “Help Taxpayers File Accurate Returns, But Audit When They Don’t”

Effective Deployment of Modern Technology is Key to Shrinking the Tax Gap

The technology needed to Shrink the Tax Gap is available today. In fact, the IRS already has much of it in house. However, in part because the IRS’s current core processing systems are so old they can’t take advantage of modern technology, like machine learning, and in part because of budget reductions and workload increasesContinue reading “Effective Deployment of Modern Technology is Key to Shrinking the Tax Gap”

How Big is the Tax Gap?

The tax gap is almost $600 billion PER YEAR: money due the government under the tax code that is not paid and never collected.  Just missing. Most of us can’t image a number that big so here’s another way of looking at it. It is more than ALL the income taxes paid by 90% of individualContinue reading “How Big is the Tax Gap?”

What Is the Tax Gap?

The Tax Gap is all the money that is legally due under the tax law but is not collected each year. That is almost $600 billion per year. No business would accept such an enormous loss, but each year the loss grows because the government fails to do enough to collect it. The Tax GapContinue reading “What Is the Tax Gap?”


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