TaxAdministrationIRS plans to close the $345bn tax gap

IRS plans to close the $345bn tax gap

The Internal Revenue Service is planning new strategies to narrow the tax gap of $345bn, but has met with significant challenges.

The US Internal Revenue Service is developing fresh strategies to crack down
on the estimated $345bn tax gap, but significant challenges still remain
according to a recent report.

The Treasury Department’s Inspectorate General has claimed that strategies to
reduce the tax gap put forward in August last year, dubbed the seven-pronged
approach are encouraging but depend on too many vairables according to
WebCPA.

‘While we are encouraged by the development of a detailed strategy to reduce
the tax gap, long-term success will depend on the IRS’s ability to address
several risk factors, some of which are beyond its control,’ said TIGTA
Inspector General J. Russell George in a statement.

The seven-pronged approach includes improving electronic filing capabilities,
simplifying the law to reduce unintentional errors and improving examination
collection and document-matching activities.

Further reading:

Treasury
Inspector General for Tax Administrations report

IRS Works on
Reducing Tax Gap

Plan
to reduce tax gap revised, expanded

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