Billions in Taxes Go Unpaid. Under Trump, the I.R.S. Won’t Say How Much.
The absence of the annual estimate on the tax gap could make it more difficult to assess whether more taxes are going unpaid since President Trump took office.
The Internal Revenue Service's decision not to release its annual estimate of the tax gap, which represents the difference between the amount of taxes owed and the amount actually paid, has raised concerns about transparency and accountability. The tax gap is a crucial metric for understanding the effectiveness of tax enforcement and identifying areas where the IRS can improve its collection efforts.
The IRS has provided these estimates since 1996, but the most recent data available is from 2014, showing a tax gap of approximately $441 billion. The lack of updated information could make it challenging to evaluate whether the tax gap has widened or narrowed under President Trump's administration. This is particularly significant given the Tax Cuts and Jobs Act, which was passed in 2017 and made substantial changes to the tax code.
As the IRS continues to implement new tax policies and procedures, it's essential to monitor the tax gap to ensure that the agency is effectively collecting the taxes owed to the government. Taxpayers and policymakers alike should watch for future updates on the tax gap and any changes to the IRS's enforcement strategies. Additionally, the IRS's decision to withhold this information may face scrutiny from lawmakers and watchdog groups, who may push for greater transparency and accountability from the agency.
Originally reported by nytimes.com. MyNews adds analysis for general news readers.