Title page
Contents
Summary 2
Key Elements of the Tax Gap 5
Analysis 7
Distribution of the Tax Gap by Source of Income 8
Distribution of the Tax Gap by Income Level 9
Policy Options for Reducing the Federal Tax Gap 10
Expand Existing Enforcement Mechanisms 10
Audits (Examinations) 10
Math Error Authority 12
Information Reporting 13
Simplify the Tax Code 16
Strengthen Regulations on Tax Preparers 17
Conclusion 18
Appendix. How the IRS Estimates the Tax Gap 19
Author Information 22
Disclaimer 22
Figure 1. Sources of Underreporting Tax Gap 6
Figure 2. Estimated Share of Income Unreported, By Visibility of Income 8