Narrowing the Tax Gap - Internal Revenue Service缩小差距，国内税收服务税.pptVIP

Narrowing the Tax Gap James B. Mackie III Director, Revenue Estimating Division Office of Tax Analysis U.S. Treasury Disclaimer Any views or opinions are my own and do not necessarily reflect the official views of the U.S. Treasury. Bottom Line The tax gap is a serious multi-dimensional problem. The tax gap can be reduced but not eliminated. The Administration is committed to working with Congress to reduce the tax gap without unduly burdening compliant taxpayers. The Treasury has proposed a multi-pronged approach to reducing the tax gap and has made specific Budget proposals consistent with this strategy. Some budget proposals have been enacted. Tax Gap Background What is the Tax Gap? Gross tax gap. The difference between the amount of tax that taxpayers should pay under the tax law and the amount they actually pay on time. Estimate of $345 billion in tax year 2001, 83.7% voluntary compliance rate. Net tax gap. Gross tax gap less taxes that were paid voluntarily but late and recoveries from IRS enforcement activities. Estimate of $290 billion in tax year 2001, 86.3% net compliance rate Sources of the Tax Gap Caused by many kinds of errors and omissions. Intentional evasion and unintentional errors both contribute to the tax gap. Tax complexity leads to unintentional errors and creates opportunities for intentional evasion. Better taxpayer service can reduce unintentional errors. Can’t tell how much of the gap is from unintentional errors. Over 80% of the gross tax gap is from underreporting of income. Over 40% is underreporting of net business income (individual income tax and self-employment tax). About 10% of the gross tax gap is from underpayment of tax and about 10% from nonfiling. Information Reporting and Withholding Noncompliance is highest among taxpayers whose income is not subject to third party information reporting or withholding. Withholding. Wages are underreported by 1%. Information reporting. Interest income, dividends, social security