The IRS’s estimate of the difference between what is likely owed and the lesser amount that is actually paid by taxpayers could be more accurate and comprehensive, the Treasury Inspector General for Tax Administration has said.
It said the "tax gap," which plays a role in agency policy and was estimated at $450 billion in 2006, could be more comprehensive if it included estimates for the informal economy and offshore tax evasion, for example.
The IRS agreed to study the feasibility of developing separate estimates for the informal economy and offshore tax evasion, as well as to study the merits of changing the approaches to estimating corporate tax underreporting.
