Shrink the Tax Gap - Significantly reducing the over $574B in annual taxes owed, but not paid

Our Purpose

Make the Federal tax system fair for everyone who pays their taxes

- - Most people pay their taxes
  - Some people don’t
  - That’s not fair

The Problem

$574 Billion PER YEAR in unpaid taxes

- - A minority of taxpayers fail to pay what they legally owe. This unpaid amount – the Tax Gap – is more than all the income tax paid by 90% of individual taxpayers.
  - Most of the Tax Gap is from high income taxpayers not paying what they owe.
  - This is unfair to every compliant taxpayer.
  - Before we raise taxes on those already paying what they owe, we should collect from those who are not paying.

The Solution

A practical plan to shrink the Tax Gap

Our plan raises $1.4 trillion over 10 years without raising taxes on any compliant taxpayer.

This is almost as much as President-Elect Biden’s tax plan would raise from increasing individual income and social security taxes.

Our plan includes three practical steps:
- - - - Use Modern technology to improve service and identify unreported income
        
        Ensure all income is reported to the IRS
        
        Provide IRS resources to collect what we know is owed.

It’s only fair – before raising taxes, we should collect the taxes already on the books.

Look Who Agrees

Leaders from across the political spectrum and business community support this plan.

See all the comments on our proposal

"The tax gap between what Americans already legally owe, and what is actually paid is enormous and getting worse...We don’t need more taxes, we need to just collect what is already on the books. Charles Rossotti, a former IRS Commissioner and tax expert, has proposed a way to correct this problem that merits everyone’s serious consideration."

"This idea is more than fair, politically simple, pays for itself over and over and over again, and stops evasions that are unfair. So it’s good for America. Let’s get it done!"

"Charles Rossotti’s proposal to raise tax revenue by enforcing existing law rather than raising tax rates under new law is absolutely the way to go. It has never made any sense to me why we should raise taxes of people who are paying their fair share rather than collecting tax from those who have not paid their fair share."

"Charles did wonderful things to lift the IRS during his leadership. This proposal is logical and deserves serious consideration. Our IRS systems need to be fit for purpose for the current task."

"This analysis of the tax gap and action plan for narrowing it are critical for enhancing the effectiveness of the IRS and the fairness of the enforcement of our tax laws."

"The tax gap is a longstanding problem that deserves continuing attention. Taking measures to address the tax gap will not only raise needed revenue, but will also enhance taxpayer confidence in the fairness of our tax system that depends upon self-assessment."

"By modernizing the IRS’s 50-year old IT systems and replacing some of the employees the agency has lost due to decades of budget cuts, we could shrink America’s “tax gap” ... Modernizing the IRS’s IT systems would also help the IRS provide better customer service."

Recent News and Events

See all News and Events

The Tax Gap and the Biden Plan to Beef Up the IRS

WSJ Letter to the Editor by former IRS Commissioner Charles Rossotti - 9/10/21

Letter and Original Editorial

The Case for a Robust Attack on the Tax Gap

Natasha Sarin, Deputy Assistant Secretary for Economic Policy - 9/9/21

Read Article

Banks Are Wrong to Fight Proposed New IRS Disclosure Rule

By Charley Ellis & Alex Boyle - Bloomberg Opinion - 9/28/21

Read Op-Ed

IRS Data Security Paper

Shrink the Tax Gap Analysis of IRS Taxpayer Information Security

Read Paper

The banking industry is throwing stones at a key Biden nominee. But it lives in a glass house.

Washington Post Opinion by former Treasury Secretary Lawrence H. Summers - 10/8/21

Read Article

Give IRS the tools it needs to enforce tax rules and catch cheaters

Brookings Op-Ed by William G. Gale, Co-Director Urban-Brookings Tax Policy Center - 9/1/21

Read Editorial

How to get the wealthy to pay the taxes they owe

CNN Business Perspectives Opinion by Jacob J. Lew, former Treasury Secretary - September 30, 2021

Read Article

Here is our proposal to shrink the Tax Gap and make it easier for tax payers to deal with the IRS.

Reform Proposal Presentation

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Our Purpose

Make the Federal tax system fair for everyone who pays their taxes

Most people pay their taxes

Some people don’t

That’s not fair

The Problem

$574 Billion PER YEAR in unpaid taxes

A minority of taxpayers fail to pay what they legally owe. This unpaid amount – the Tax Gap – is more than all the income tax paid by 90% of individual taxpayers.

Most of the Tax Gap is from high income taxpayers not paying what they owe.

This is unfair to every compliant taxpayer.

Before we raise taxes on those already paying what they owe, we should collect from those who are not paying.

The Solution

A practical plan to shrink the Tax Gap

Our plan raises $1.4 trillion over 10 years without raising taxes on any compliant taxpayer.

This is almost as much as President-Elect Biden’s tax plan would raise from increasing individual income and social security taxes.

Our plan includes three practical steps:

Use Modern technology to improve service and identify unreported income

Ensure all income is reported to the IRS

Provide IRS resources to collect what we know is owed.

It’s only fair – before raising taxes, we should collect the taxes already on the books.

Look Who Agrees

Recent News and Events

Here is our proposal to shrink the Tax Gap and make it easier for tax payers to deal with the IRS.

Join Our Email List For Shrink the Tax Gap Updates

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How More Funding Could Create a Less Frustrating IRS