Trending claims

In spring congressional appearances, IRS CEO Mr. Bisignano expressed skepticism about the tax gap methodology and stated a desire to focus on realistically collectible taxes.

Retired IRS analyst Alan Plumley said the agency's methodology means the annual headline tax gap figure is not particularly meaningful.

The IRS estimates the tax gap by extrapolating noncompliance rates from a statistical sample of intensive audits to the general taxpayer population.

During the Biden administration, the IRS began providing annual tax gap updates, changing from its previous practice of releasing them every few years.

Retired IRS analyst Alan Plumley stated that random audits are now considered a luxury, whereas they were previously viewed as a necessity.

Mr. Bisignano is the first chief executive officer of the IRS and is also the commissioner of the Social Security Administration.

The IRS's 2022 tax gap estimate is based on noncompliance rates from tax filings between 2014 and 2016.

The IRS stated that 85% of owed taxes were paid voluntarily and on time in 2022.

Republicans later clawed back much of the additional $80 billion in IRS funding.

The IRS has found that income with third-party verification is rarely underreported, while income without it often goes unreported.

In 2021, then-IRS leader Charles P. Rettig speculated the tax gap could be $1 trillion a year while calling for a larger budget.

In 2022, Democrats approved an additional $80 billion in funding for the IRS.

The majority of the IRS tax gap results from individuals underreporting their income on filed tax returns.

IRS leader Frank Bisignano announced in an email that Vincent LaPadula, who joined from JPMorgan Chase, will lead the agency's work on the tax gap.

Last year, President Trump fired the head of the Bureau of Labor Statistics and called the labor market data 'rigged'.

IRS leader Frank Bisignano stated that tax enforcement revenue is increasing this year and does not depend on the number of auditors.

Natasha Sarin was a Treasury official during the Biden administration and has written extensively about the tax gap.

An IRS spokesman stated the agency is updating its tax gap calculation methodologies and will release the figure when it is ready.

The Pentagon declined to provide the Congressional Budget Office with information on the cost of the war in Iran.

The Trump administration reduced the IRS workforce by roughly a quarter and cut its budget.