Thursday, August 2, 2007

IRS releases report on steps to improve voluntary compliance with tax laws

The Internal Revenue Service today released a report that reviews the agency's strategy to improve voluntary compliance with tax laws and help close the "tax gap."

"Reducing the Federal Tax Gap: A Report on Improving Voluntary Compliance" recognizes the importance of having a multi-year research program that will assist in understanding both the scope of noncompliance and the reasons for it.

The gross tax gap was estimated to be $345 billion in 2001. After enforcement effects and late payments, the number was reduced to a net tax gap of approximately $290 billion, the IRS said.