Abstract
The tax gap attributable to individual taxpayers was estimated to be $70 billion in 1988 the date of the last complete Taxpayer Compliance Measurement Program (TCMP) audit. Recent estimates of the tax gap are based on the audits of 46,000 individual income tax returns from 2001 conducted as part of the National Research Program (NRP). The NRP reported a noncompliance rate of 16.3% of true tax liability, 80% of which was due to under-reported income.
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Notes
- 1.
See “IRS Updates Tax Gap,” IR-2006-28, February 14, 2006.
- 2.
The tax gap attributable to individual taxpayers was estimated to be $70 billion in 1988 the date of the last complete Taxpayer Compliance Measurement Program (TCMP) audit. Recent estimates of the tax gap are based on the audits of 46,000 individual income tax returns from 2001 conducted as part of the National Research Program (NRP). The NRP reported a noncompliance rate of 16.3% of true tax liability, 80% of which was due to under-reported income.
- 3.
The original research was sponsored in part by the IRS under the project: IRS Criminal Investigation Research—Empirical Analysis of the Impact of CI Activities on Taxpayer Compliance, TIRNO-00-D-0039. The IRS CI project was itself a response to a review of the IRS CI Division by Judge William Webster. Chapters 7 and 8 are based in part on this research.
- 4.
Chapter 5 significantly relies on DGW (1990).
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Dubin, J.A. (2012). Introduction. In: The Causes and Consequences of Income Tax Noncompliance. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-0907-7_1
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DOI: https://doi.org/10.1007/978-1-4419-0907-7_1
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