Further Research Into Noncompliance Is Needed To Reduce Growing Tax Losses
GGD-82-34
Published: Jul 23, 1982. Publicly Released: Jul 23, 1982.
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Highlights
The federal government is losing billions of dollars in tax revenues annually because individuals are not complying with U.S. tax laws. There is a growing trend toward disregard for the principle of voluntary tax compliance, a trend which the Internal Revenue Service (IRS) estimates increased tax revenue losses from $12 billion in 1976 to at least $20 billion in 1980.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | The Commissioner of Internal Revenue should design, and assign a high priority to, compliance research which will provide data on how and why IRS compliance programs, both collectively and individually, affect peoples' willingness and ability to accurately report taxable income and to otherwise comply with the tax laws. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should design, and assign a high priority to, compliance research which will identify techniques for measuring and analyzing the effects of the compliance programs on both those taxpayers actually contacted and others who might be affected. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should use cost/revenue data to reallocate staff-years from those compliance programs with historically lower average revenue yields to those with much higher yields in order to increase tax revenues from those programs. |
Closed – Not Implemented
IRS contends that the issue is a policy question and considers it in its regular long range planning and budgetary processing and, therefore, no special action is needed.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should develop additional data so that resources can be allocated among all compliance programs to increase, insofar as practicable, overall tax revenue. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should plan and budget within each program to maximize revenue using the best available cost/revenue data. |
Closed – Not Implemented
IRS feels that it is a policy issue which is addressed in its annual planning review process.
|
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Topics
Income taxesProgram evaluationReporting requirementsTax evasionTax nonpaymentTax return auditsVoluntary complianceTaxpayersTax returnsTaxes