TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Saturday, January 7, 2012

IRS: Tax Gap Widens to $450 Billion

IRS LogoIR-2012-4 (Jan. 6, 2012), IRS Releases New Tax Gap Estimates; Compliance Rates Remain Statistically Unchanged From Previous Study:

The IRS today released a new set of tax gap estimates for tax year 2006. ... The new tax gap estimate represents the first full update of the report in five years, and it shows the nation’s compliance rate is essentially unchanged from the last review covering tax year 2001. .... The following table summarizes the new estimates being released today, as compared to the 2001 estimates, along with the total tax liabilities in each year.


Tax Year 2001

Tax Year 2006

Total Tax Liabilities



Gross Tax Gap

(83.7% compliance)

(83.1% compliance)

Enforcement and Late Payments



Net Tax Gap

(86.3% compliance)

(85.5% compliance)

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