The Internal Revenue Service fails to collect over $600 billion in taxes owed each year, more than 90% of all taxes paid by individual taxpayers. In two articles published in Tax Notes, we propose a program for directly addressing a large part of this tax gap with a combination of new information reporting and more effective use of currently available technology. This website provides the details of that proposal and provides ongoing support to getting these ideas implemented.
Recover $1.4 trillion in federal tax from those who are not paying what they owe, before raising taxes on those who are paying.
Shrink the Tax Gap is a practical proposal to reduce the tax gap, gaining $1.4 trillion in the first ten years, while making it easier for all taxpayers to interact with the IRS.
What is the Tax Gap and how big is it?
What's being done to shrink the Tax Gap?
Proposal of tax reforms to shrink the Tax Gap.
What is the Tax Gap and how big is it?
The Tax Gap is all the taxes that are due, but not paid.
It is almost as much as the government spends for all domestic programs such as roads and bridges medical research, education, and law enforcement.
It is more than ALL the income taxes paid by 90% of individual taxpayers.
What's being done to shrink the Tax Gap?
Less than nothing.
The Tax Gap is getting bigger year after year. The IRS is getting smaller.