This report comes at the start of a new budget cycle after the IRS was given too little money to accomplish its mission of enforcing the nation's tax laws and collecting federal revenues in 2007. Because of insufficient resources and inefficient (and sometimes dangerous) policies at the IRS, over $300 billion in federal income taxes goes uncollected every year. It's time for Congress to step up:

Congress has given considerable lip service to doing something about the tax gap for years but has done little to actually give the IRS the tools to make significant progress in closing it. Despite this fact, Congress has demanded the IRS close the tax gap without making more resources available for the agency to do so. Thus, the IRS has been forced to make difficult choices as to how to use the limited resources it has been allocated. As a result, at the very least, the tax gap remains a large problem, and most experts believe it has probably increased in size as the IRS has largely scaled back tax law enforcement over the last ten years.

We believe its time for Congress and the IRS to get their collective acts together and make some long-overdue changes to the IRS' budget and tax enforcement policies. This report gives some first steps in how this can happen.

Bridging the Tax Gap: The Case for Increasing the IRS Budget
OMB Watch Press Release for Report