Sunday, January 28, 2007
The IRS made steady progress last year towards “transforming itself into a modern institution that provides efficient and effective tax administration services to America’s taxpayers,” according to the IRS Oversight Board’s 2006 Annual Report. However, “the IRS must still meet a number of challenges before it can achieve the vision of a 21st Century tax administration agency described in the IRS Restructuring and Reform Act of 1998.” ...
The Board found that the IRS is pressing forward to meet its strategic goals and credits the agency for delivering some noteworthy gains in the past year, such as an increase in enforcement activity and stable customer service levels. According to a survey commissioned by the Board in 2006, taxpayers also increasingly recognize that the IRS provides good quality service through a variety of channels, such as its web site, toll-free telephone lines and Taxpayer Assistance Centers. The Board commends the IRS for these hard-won gains.
However, the Oversight Board’s foremost concern remains the tax gap – the difference between what taxpayers legally owe and what is actually collected. The IRS’ most recent estimate for the annual net tax gap is $290 billion, based on 2001 tax returns: