Politicians are in constant debate over how to decrease the budget deficit: raise taxes or cut them?

Tax researchers often cite a more politically-neutral third option: reduce the “tax gap.”

The tax gap is simply the difference between taxes owed and taxes paid.

Former Treasury Secretary Larry Summers and University of Pennsylvania law professor Natasha Sarin, argue that the United States Government can increase revenue by more than one trillion dollars. They can do this by enforcing and collecting taxes people already owe but have yet to pay.

The IRS estimates that between 2011 and 2013, it failed to properly collect over $380 billion dollars from taxpayers. When adjusted for inflation and income growth, these researchers estimate that from 2020 to 2029 the government will miss out on nearly $7.5 trillion. Unless the IRS increases tax enforcement.


The IRS is Taking Action

As we have recently discussed on this blog, the IRS faces serious challenges. Summers and Sarin argue that a modest funding increase for the IRS’ Compliance and Collections departments can significantly raise revenue without wading into the politically fraught debate over passing new tax legislation. 

This past year, the local IRS Office in Marietta, GA appears to have acknowledged this problem and hired dozens of additional Revenue Officers to collect on tax debts. We have seen a significant increase in local tax enforcement as a result. Don’t be a victim of the tax gap!

If the IRS has contacted you about an audit (Compliance) or back tax debt (Collections), you can contact us at this link for help.

The Tax Attorneys To Call First

Taxes are complex, but need not be stressful. Britt and Burroughs are Atlanta tax attorneys that offer a personalized approach to your tax concerns. Contact us at our local Marietta, Georgia office at 770-427-1776.