Obama Budget Proposal Starts to Address the Tax Gap and Bolster IRS Compliance

I’ve blogged before about how closing the tax gap could help fund deficit reduction activities. And the White House is definitely searching for new tax revenues. Plans are underway to create a task force that will be looking to end corporate loopholes and bolster IRS enforcement.

The Wall Street Journal reports:

Mr. Obama’s budget proposal began the process of addressing problems such as the tax gap, the difference between taxes owed and taxes collected. “The question is whether we can be even more aggressive” in those areas, Mr. Orszag said in an interview late Tuesday. The task force will be run through a White House advisory board being headed by former Federal Reserve Chairman Paul Volcker, Mr. Orszag said.

No target for a dollar figure has been set. But the effort theoretically could lead to tens of billions of dollars in additional collections. The tax gap alone is estimated at $300 billion a year, of which more than $100 billion is believed to be collectible, according to IRS statistics.

In 2007, one out of 11 individuals with incomes of $1 million or more faced a tax audit. Tougher enforcement against tax avoidance means that the IRS will be even more aggressive when pursuing tax cheats and businesses avoiding their obligations – and more Americans than ever will be seeking tax relief and IRS help.

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More Tax Help, IRS News and Tax Relief Tips:

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  4. Obama’s Efforts to Eliminate Loopholes and Bolster IRS Compliance Fall Short of Closing Tax Gap
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2 Responses to “Obama Budget Proposal Starts to Address the Tax Gap and Bolster IRS Compliance”

  1. Wealthy Taxpayers Are More Likely to be Audited and Should Know How to Avoid Audit Red Flas | Tax Relief Tips from the Experts at Tax Resolution University Says:

    [...] the White House looking to bolster IRS enforcement, one of the best things you can do to reduce your chances of an IRS audit, is to file and accurate [...]

  2. Obama’s Efforts to Eliminate Loopholes and Bolster IRS Compliance Fall Short of Closing Tax Gap | Tax Relief Tips from the Experts at Tax Resolution University Says:

    [...] Recommendations for bolstering IRS complaince are due in early December, and eight months isn’t nearly enough time to lay the groundwork for big changes. [...]

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