ShrinkTheTaxGap_Hero_2021_v2

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

"Shrink The Tax Gap” represents the most practical, balanced, and potentially effective proposal for improving tax compliance developed in recent years."
Stuart BrownIRS Chief Counsel (1994-2001), Deputy Chief of Staff of the Congressional Joint Committee on Taxation (1989-91)
"The proposals are nuanced and thoughtful, cognizant of recent of trends affecting the IRS and informed by his professional experience in tax administration."
Bill GaleCo-Director, Urban-Brookings Tax Policy Center; Miller Chair, Brookings Institution
"Shrink the Tax Gap is a straightforward, actionable proposal that improves the fairness of our tax system and addresses the Federal Government’s need for additional revenues. In today’s digital economy, it is an idea whose time has come and deserves broad bipartisan political support."
Andrés GluskiPresident and CEO, The AES Corporation
"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."
William W. LewisFormer Senior Partner, McKinsey & Co., Former Acting US Secretary of Energy
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Recent News and Events



See all News and Events

Taxgirl Podcast Interview with Charles Rossotti
Kelly Erb (Taxgirl) - 2/16/21
Listen to Podcast
Treasury Deputy Calls for Information Reporting to Close Tax Gap
Bloomberg Tax - 1/29/21
Read More
Make Tax System Fairer, Easier for Taxpayers While Collecting $1.4 Trillion Owed But Not Paid
Bloomberg Tax Op Ed by Charles Rossotti & Fred Goldberg - 2/17/21
Read Article
Rossotti tax plan narrows gap without raising taxes
Baltimore Sun - Commentary - Alexander Boyle - 1/15/20
Read Commentary
$574 billion in taxes weren't paid in 2019. Here's how to shrink the gap
Fortune Commentary*Taxes - 1/30/2021
Full Article
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Here is our proposal to shrink the Tax Gap and make it easier for tax payers to deal with the IRS.

Reform Proposal

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