IRS Strategic Plan Addresses the Tax Gap and Focuses on Service and Enforcement over the Next Five Years

The IRS just released its strategic plan for fiscal years 2009-2013. The plan outlines how the agency will improve service to taxpayers and enforcement of the law over the next five years.

According to IRS Commissioner Douglas H. Shulman, the agency’s first goal is to make voluntary compliance easier in an effort to maintain the fairest and most effective system of voluntary compliance in the world.

In other words, their goal is to increase the enforcement of tax law and ensure that all Americans pay their full tax liability. This is no surprise. With the current economic slump, tax revenue is down and government spending is up, so it only makes sense that tax enforcement and collection efforts will be increasing.

According to the IRS, nearly 84 percent of all taxes are paid on time by taxpayers reporting freely and voluntarily.

This means that 16% of of the taxpaying public have tax problems.  And in this recession,  we can expect that percentage to increase significantly.

The report also looks at the nation’s sizeable the tax gap – estimated at a net of $290 billion a year, after IRS enforcement actions that bring in $55-60 billion.

The IRS declares that they owe it  “to all the citizens who … pay their taxes to be vigorous in pursuing individuals who are not paying what they owe.” At the same time, the plan indicates that “the IRS cannot audit its way to full compliance” and that a multi-pronged approach is required.

Bottom line: If you can’t afford to pay your taxes or have unfiled tax returns, it’s more important than ever to know your options for tax relief! My best advice is to file your 2008 tax return as well as any prior delinquent tax returns as soon as possible to avoid the wrath of the IRS.

Download the full report here: IRS Strategic Plan, Fiscal Years 2009-2013

** If you owe back taxes and need income tax relief, our specialized staff of attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site  for a free tax relief consultation or call us at 866-IRS-PROBLEMS.

More Tax Help, IRS News and Tax Relief Tips:

  1. Obama Proposes Doubling Tax Law Enforcement Budget and Seeks $400 Million Funding Boost for IRS Enforcement Activities
  2. No Income Tax Rate Increase Until 2011 But Expect Increased IRS Audits of Tax Returns in Near Future
  3. IRS Asserts Position on Tax Protesters: Sanctions Imposed for Advancing and Maintaining a Frivolous Argument
  4. Income Tax Relief Advice for the 35 Million Taxpayers Currently in Trouble with the IRS
  5. Treasury Proposes Multilateral Agreement for Offshore Compliance

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One Response to “IRS Strategic Plan Addresses the Tax Gap and Focuses on Service and Enforcement over the Next Five Years”

  1. Tax Help for Those “Guilty Till Proven Innocent”: Learn How New Tax Laws and IRS Enforcement Initiatives Could Affect You | Tax Relief Tips from the Experts at Tax Resolution University Says:

    [...] “suspicious” and potentially guilty of tax evasion.

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