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Actions Are Needed to Improve the Completeness, Development, and Review of IRS Tax Gap Estimates

Report Information

Date Issued
Report Number
Report Type
Joint Report
Agency Wide
Yes (agency-wide)
Questioned Costs
Funds for Better Use


Coordinate with IRS business operating divisions to create and implement a formalized strategy to identify, prioritize, and develop estimates for areas of noncompliance that are not currently addressed in the Tax Gap estimates.

Improve the transparency of the Tax Gap estimates in future revisions of the Tax Gap report by including an enhanced discussion of the limitations of the Tax Gap estimates, including the types of taxpayer noncompliance that are not included in the estimates and those types that may not be fully captured.

The Chief Data and Analytics Officer, RAAS, should develop consolidated, written policies and procedures for developing the Tax Gap to help ensure repeatability, timeliness, quality, and continuity of the Tax Gap estimates and improve oversight.

Develop written policies and processes to formalize the internal and external reviews of the Tax Gap estimates.

Reestablish an advisory group to review any updates to the Tax Gap methodology that would significantly affect the estimates.