Tax Vox Proposal: Hire More IRS Agents to Close Tax Gap

Tax Vox Proposal: Hire More IRS Agents to Close Tax Gap

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Three cheers to Eric Toder of Tax Vox Blog who wrote,

IRS audit resources have never fully recovered – in relation to the workload the IRS faces – from the IRS-bashing of the late 1990s. That’s too bad because IRS internal studies show each dollar spent on an additional examiner brings in on average 4 to 5 dollars of additional revenue. Fortifying enforcement would seem to be a “no-brainer” when we have a tax gap of at least $400 billion. 

Toder acknowledges that some people may think it’s unwise in a recession to take money from delinquent taxpayers that would be otherwise circulated in the economy. But he has an interesting answer:

[N]ew agents wouldn’t become serious revenue raisers until the recession has run its course. In their first year, the IRS estimates, so-called revenue productivity will be very low because experienced auditors will be kept busy training the new examiners. And paying this new cadre will add to the economic stimulus. In a few years, the revenues will come rolling in and the new agents will more than pay for themselves.  

I hereby renew my vow never to favor a tax increase of any kind until two things occur:

1.  The government eliminates or seriously curtails waste; and

2.  It substantially closes the tax gap.

Analogy: What would you do if your 15 year old son asked you to raise his allowance from $50 per month to $100 per month if you knew that he flushed $20 dollars of his monthly stipend down the toilet?

You wouldn’t give it to him.

So why give the federal government a raise for wasting your money?

About Peter Pappas

Peter is a tax attorney and certified public acccountant with over 20 years experience helping taxpayers resolve their IRS and state tax problems.

He has represented thousands of taxpayers who have been experiencing difficulty dealing with the Internal Revenue Service or State tax officials.

He is a member of the American Association of Attorney-Certified Public Accountants, the Florida Bar Association and The Florida Institute of Certified Public Accountants and is admitted to practice before the United States Tax Court, the United States Supreme Court, U.S. District Courts - Middle District of Florida

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