Wednesday, August 8, 2007

IRS drops carrot for the stick to improve effectiveness

"In 2001, the IRS reported a $345 billion tax gap...To close the tax gap, the IRS spent 13 percent more on enforcement in 2006 than in 2004"

"To further minimize the tax gap, the proposed 2008 IRS operating budget of 11.6 billion earmarks 63 percent of the overall budget for collection enforcement."

"Increased IRS enforcement also translates to more civil and criminal actions against taxpayers trying to cheat the sytem. In 2006, the IRS reports that it initiated 3,907 investigations resulting in 2,319 criminal complaints and indictments and 2,019 convictions. That's a conversion rate of 82 percent. The average prison time per conviction and sentencing was just over two years"


Complete article can be found here:
http://www.sun-sentinel.com/news/opinion/sfl-irscol07forumnbaug07,0,953556.story

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