IRS updates tax gap estimates; new data points the way toward enhancing taxpayer service, compliance efforts

IRS updates tax gap estimates; new data points the way toward enhancing taxpayer service, compliance efforts

IR-2022-192, October 28, 2022

WASHINGTON — The Internal Revenue Service today released a new set of tax gap estimates on tax years 2014 through 2016 showing the estimated gross tax gap increased to $496 billion, a rise of over $58 billion from the prior estimate.

The gross tax gap is the difference between estimated ‘true’ tax liability for a given period and the amount of tax that is paid on time. As discussed below, it is important to note that the tax gap estimates cannot fully account for all types of evasion.

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