Download or read book Tax Gap and Tax Enforcement written by and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent and projected large federal budget deficits have generated congressional interest in the feasibility of raising revenue by reducing the tax gap. The Internal Revenue Service (IRS) defines the gross tax gap as "the difference between the aggregate tax liability imposed by law for a given tax year and the amount of tax that taxpayers pay voluntarily and timely for that year." "The net gap is the amount of the gross tax gap that remains unpaid after all enforced and other late payments are made for the tax year." For tax (calendar) year 2001, the IRS estimates a gross tax gap of $345 billion, equal to a noncompliance rate of 16.3%. For the same tax year, IRS enforcement activities, coupled with other late payments, recovered about $55 billion of the gross tax gap, resulting in a net tax gap of $290 billion. The estimated gross tax gap of $345 billion consists of underreporting of tax liability ($285 billion), nonfiling of tax returns ($27 billion), and underpayment of taxes ($33 billion). (Taxes on illegal activities are excluded from these estimates.) The $285 billion of underreporting of tax liability has the following components: $197 billion of individual income tax, $54 billion in employment tax, $30 billion in corporate income tax, and $4 billion in estate taxes. The IRS has replaced the Taxpayer Compliance Measurement Program -- a systematic approach for estimating the tax gap -- with the National Research Program (NRP). One of the guiding principles for the NRP is to minimize the compliance burden on those taxpayers selected in the NRP sample. The new methodology of the NRP was applied to the underreporting gap for the individual income tax for tax year 2001. The estimates of the gross tax gap have been heavily publicized; perhaps as a result, some public officials have emphasized better enforcement of tax laws in order to raise revenue. Three factors limit the dollar amount that can be collected by increased enforcement. First, much of the gross tax gap for individual income tax filers is due to types of unreported income that are difficult to detect. Second, some of the detected tax liability cannot be easily collected, particularly from those taxpayers who are currently unable to pay. Third, many detected tax liabilities are so small relative to enforcement costs that it is not cost-effective to pursue collection. From fiscal years 2001 to 2006, greater tax enforcement efforts by the IRS increased enforcement revenue from $33.8 billion to $48.7 billion. The IRS is attempting to reduce the gross tax gap by pursuing a strategy, which has seven components: reduce opportunities for evasion, make a multi-year commitment to research, continue improvements in information technology, improve compliance activities, enhance taxpayer service, reform and simplify the tax law, and coordinate with partners and stakeholders. This report will be updated as issues develop or new legislation is introduced.
Download or read book Bridging the Tax Gap written by Max Sawicky and published by . This book was released on 2005 with total page 160 pages. Available in PDF, EPUB and Kindle. Book excerpt: Offering thorough understanding of the crisis facing federal tax administration and suggesting practical approach to solving issues that have arisen.
Download or read book Why People Pay Taxes written by Joel Slemrod and published by . This book was released on 1992 with total page 361 pages. Available in PDF, EPUB and Kindle. Book excerpt: Experts discuss strategies for curtailing tax evasion
Download or read book Tax Administration IRS Tax Gap Studies written by United States. General Accounting Office and published by . This book was released on 1988 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Causes and Consequences of Income Tax Noncompliance written by Jeffrey A. Dubin and published by Springer Science & Business Media. This book was released on 2011-12-02 with total page 282 pages. Available in PDF, EPUB and Kindle. Book excerpt: Taxpayer compliance is a voluntary activity, and the degree to which the tax system works is affected by taxpayers’ knowledge that it is their moral and legal responsibility to pay their taxes. Taxpayers also recognize that they face a lottery in which not all taxpayer noncompliance will ever be detected. In the United States most individuals comply with the tax law, yet the tax gap has grown significantly over time for individual taxpayers. The US Internal Revenue Service attempts to ensure that the minority of taxpayers who are noncompliant pay their fair share with a variety of enforcement tools and penalties. The Causes and Consequences of Income Tax Noncompliance provides a comprehensive summary of the empirical evidence concerning taxpayer noncompliance and presents innovative research with new results on the role of IRS audit and enforcements activities on compliance with federal and state income tax collection. Other issues examined include to what degree taxpayers respond to the threat of civil and criminal enforcement and the important role of the media on taxpayer compliance. This book offers researchers, students, and tax administrators insight into the allocation of taxpayer compliance enforcement and service resources, and suggests policies that will prevent further increases in the tax gap. The book’s aggregate data analysis methods have practical applications not only to taxpayer compliance but also to other forms of economic behavior, such as welfare fraud.
Download or read book Tax Administration 2021 Comparative Information on OECD and other Advanced and Emerging Economies written by OECD and published by OECD Publishing. This book was released on 2021-09-15 with total page 355 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report is the ninth edition of the OECD's Tax Administration Series. It provides internationally comparative data on aspects of tax systems and their administration in 59 advanced and emerging economies.
Download or read book Tax compliance better compliance data and longterm goals would support a more strategic IRS approach to reducing the tax gap report to the Committee on Finance U S Senate written by and published by DIANE Publishing. This book was released on with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Tax Gap written by U.s. Government Accountability Office and published by Createspace Independent Publishing Platform. This book was released on 2017-08-05 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: " Heightened attention to federal deficits has increased pressure on IRS to reduce the tax gap-the difference between taxes owed and taxes paid on time-and better enforce taxpayer compliance. Resource limitations and concern over taxpayer burden, however, prevent IRS from auditing more than a small fraction of individual income tax returns filed. How IRS allocates these limited resources demands careful consideration. As requested, this report (1) describes how IRS allocates resources across individual taxpayer compliance enforcement programs and across types of taxpayers within each program; (2) estimates the direct revenue return on investment for the individual taxpayer enforcement programs and the extent of variation across those programs and across types of taxpayers; and (3) determines the potential for gains from shifting resources from lower-yielding programs and types of taxpayers to higher-yielding ones. To accomplish these objectives GAO analyzed IRS data on 2007 and 2008 tax returns, reviewed IRS documentation, and interviewed appropriate IRS officials. "
Download or read book Tax Gap written by United States. General Accounting Office and published by . This book was released on 1994 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Tax Gap and Tax Enforcement written by James M. Bickley and published by . This book was released on 2008 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Tax Compliance written by United States Government Accountability Office and published by Createspace Independent Publishing Platform. This book was released on 2017-09-15 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: The tax gap-the difference between the tax amounts taxpayers pay voluntarily and on time and what they should pay under the law-has been a long-standing problem in spite of many efforts to reduce it. Most recently, the Internal Revenue Service (IRS) estimated a gross tax gap for tax year 2001 of $345 billion and estimated it would recover $55 billion of this gap, resulting in a net tax gap of $290 billion. When some taxpayers fail to comply, the burden of funding the nation's commitments falls more heavily on compliant taxpayers. Reducing the tax gap would help improve the nation's fiscal stability. For example, each 1 percent reduction in the net tax gap would likely yield $3 billion annually. GAO was asked to discuss the tax gap and various approaches to reduce it. This testimony discusses the need for taking multiple approaches and to what extent the tax gap could be reduced through three overall approaches- simplifying or reforming the tax system, providing IRS with additional enforcement tools, and devoting additional resources to enforcement. This statement is based on prior GAO work.
Download or read book The Revenue Administration Gap Analysis Program written by International Monetary and published by International Monetary Fund. This book was released on 2021-08-27 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is generally difficult to measure revenue not collected due to noncompliance, but a growing number of countries now regularly produce and publish estimated revenue losses. Good tax gap analysis enables the detection of changes in taxpayer behavior by consistent estimates over time. This Technical Note sets out the theoretical concepts for personal income tax (PIT) gap estimation, the different measurement approaches available, and their implications for the scope and presentation of statistics. The note also focuses on the practical steps for measuring the PIT gap by establishing a random audit program to collect data, and how to scale findings from the sample to the population.
Download or read book Taxpayer Compliance Volume 1 written by Jeffrey A. Roth and published by University of Pennsylvania Press. This book was released on 1989-06-29 with total page 426 pages. Available in PDF, EPUB and Kindle. Book excerpt: Drawing on multiple disciplines with a significant interest in taxpayer compliance, Volume I critically reviews previous research on the subject, reaches conclusions and recommends future research programs to fill gaps in knowledge.
Download or read book The Crisis in Tax Administration written by Henry Aaron and published by Rowman & Littlefield. This book was released on 2004-05-20 with total page 420 pages. Available in PDF, EPUB and Kindle. Book excerpt: People pay taxes for two reasons. On the positive side, most people recognize, even if grudgingly, that payment of tax is a duty of citizenship. On the negative side, they know that the law requires payment, that evasion is a crime, and that willful failure to pay taxes is punishable by fines or imprisonment. The practical questions for tax administration are how to strengthen each of these motives to comply with the law. How much should be spent on enforcement and how should enforcement be organized to promote these objectives and achieve the best results per dollar spent? Over the last few years, the U.S. Congress has restricted spending on tax administration, forcing the Internal Revenue Service to curtail enforcement activities, at the same time, that the number of individual filers has increased, tax rules have become more complex, and more business have become multinational operations. But if too many cases of tax evasion go undetected and unpunished, those who may have grudgingly paid their taxes may soon find it easier to join the scofflaws. These events in combination have created a genuine crisis in tax administration. The chapters in this volume evaluate the capacity of authorities to enforce the tax laws in a modern, global economy and examine the implications of failing to do so. Specific aspects of tax law, including tax shelters, issues relating to small businesses, tax software, role of tax preparers, and the objectives of tax simplification are examined in detail. The volume also builds a conceptual basis for future scholarship, with regard not only to tax administration, but also to such fundamental questions as whether taxpayers respond mostly to economic incentives or are influenced by their experiences with the filing process and what is the proper framework for evaluating the allocation of resources within the IRS.
Download or read book Taxpayer Compliance Volume 1 written by Jeffrey A. Roth and published by University of Pennsylvania Press. This book was released on 2016-11-11 with total page 416 pages. Available in PDF, EPUB and Kindle. Book excerpt: Not everyone complies with the United States Internal Revenue Code. Many individuals and organizations fail to file timely tax returns, assess their tax liability correctly, or pay taxes when due. To improve compliance, tax administrators must choose among alternative strategies, such as increasing evaders' risks of punishment, motivating social norms, and making compliance easier. Concerned with these choices, the IRS asked the National Academy to assess previous research on the determinants of taxpayer compliance and to highlight the most promising areas for future research. The Academy's panel authored the two-volume Taxpayer Compliance. Volume I presents the panel's report, which critically reviews previous research on the subject, reaches conclusions about the findings, and recommends future research programs to fill gaps in knowledge. The report also recommends ways to maintain and develop the intellectual, financial, and data resources devoted to taxpayer compliance research. Volume I presents the panel's report, which critically reviews previous research on the subject, reaches conclusions about the findings and recommends future research programs to fill gaps in knowledge. The report also recommends ways to maintain and develop the intellectual, financial, and data resources devoted to taxpayer compliance research. Taxpayer Compliance will be a valuable reference for tax practitioners and others concerned with noncompliance problems, and for scholars and students of law and sociology, political science, social psychology, and economics.
Download or read book Tax Gap written by James R. White and published by DIANE Publishing. This book was released on 2011-05 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: A taxpayer can control a group of related entities -- such as trusts, corp., or partnerships -- in a network. These networks can serve a variety of legitimate business purposes, but they also can be used in complex tax evasion schemes that are difficult for the IRS to identify. This report: (1) describes what IRS knows about network tax evasion and how well IRS's traditional enforcement programs address it; and (2) assesses IRS's progress in addressing network tax evasion and opportunities, if any, for making further progress. The auditor interviewed relevant experts and agency officials in developing criteria needed to perform the assessment. Includes recommend. Charts and tables. This is a print on demand edition of an important, hard-to-find publication.
Download or read book Tax Gap written by U. s. Government Accountability Office and published by Createspace Independent Pub. This book was released on 2013-03-14 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Internal Revenue Service (IRS) spends most of its enforcement resources on examinations. Correspondence exams of individual tax returns, which target fewer and simpler compliance issues, are significantly less costly on average than the broader and more complex field exams. GAO estimated that the average cost (including overhead) of correspondence exams opened in 2007 and 2008 was $274, compared to an average of $2,278 for field exams. IRS spent almost 20 percent of the $1.6 billion per year that it devoted to exams on returns from taxpayers with positive income of at least $200,000, even though such returns accounted for only 3 percent of the 136 million individual returns filed per year. (Positive income, a measure that IRS uses to classify returns for exam planning purposes, disregards losses that may offset this income). GAO estimated that, for the 2 years of cases reviewed, correspondence exams were significantly more productive in terms of direct revenue produced per dollar of cost than field exams. Both types of exams of taxpayers with positive incomes of at least $200,000 were significantly more productive than exams of lower-income taxpayers. GAO demonstrated how these estimates could be used to inform resource allocation decisions. For example, a hypothetical shift of a small share of resources (about $124 million) from exams of tax returns in less productive groups shown in the figure to exams in the more productive groups could have increased direct revenue by $1 billion over the $5.5 billion per year IRS actually collected (as long as the average ratio of direct revenue to cost for each category of returns did not change). These gains would recur annually, relative to the revenue that IRS would collect if it did not change its resource allocation. This particular resource shift would not reduce exam coverage rates significantly and, therefore, should have little, if any, negative effect on voluntary compliance.
