The recent release of the IRS’s 2019 Annual Fiscal Report and Strategic Plan outlines the strategic priorities and initiatives of the Internal Revenue Service through 2022. Through this plan, the IRS has shared its vision of enhancing the taxpayer experience with its broad community of American taxpayers. The plan clearly outlines six distinct strategic goals that will serve as the roadmap for translating their vision into practice for all American taxpayers. The experts at Optima Tax Relief reviews how one of the key pillars of the plan is related to the current tax gap, and why mitigating the tax gap is a top priority for the IRS.
The second goal of the Strategic Plan is to protect the integrity of the tax system by encouraging compliance through administering and enforcing the tax code. Because our tax system is based on voluntary compliance, the tax gap is closely monitored and measured by the IRS. Even with the IRS’s robust processes for tax enforcement, through this goal, the IRS will continue to identify and implement innovative methods for identifying – and ultimately resolving – noncompliance contributing to the tax gap. Through leveraging behavioral insights, the goal of the IRS is to design and implement programs to encourage voluntary compliance.
The latest tax gap estimate released by the IRS in 2019 identified the updated tax gap at $441 billion and projects that approximately $60 billion of the tax gap will eventually be paid by non-compliant taxpayers, resulting in a net tax gap of $381 billion.
The six strategic goals outlined in the 2019-2022 plan outline the IRS’s strategic priorities and will serve as the guiding principles to move the IRS forward over the coming years. Click here to read the full IRS 2018-2022 Strategic Plan.