For the years 2014 through 2016 alone, the IRS estimates $496 billion in taxes due to the IRS went unreported, or unpaid. This amount is about 85% of the amount of taxes paid voluntarily and on time. Imagine if all taxes were reported and paid.
This astonishing number highlights the need for the IRS to improve tax compliance along with taxpayer services. IRS Commissioner, Chuck Rettig, says the recent funding the IRS will receive will increase services to all taxpayers, and will allow the IRS to focus on high-income/high-wealth non-compliance.
To read more about the tax gap, voluntary tax compliance, and IRS activity to reduce the tax gap, click here.
