Tackling the underreporting of incomes and ensuring tax compliance by wealthy individuals and corporations are two of the “major management challenges” the IRS is facing in fiscal year 2025, according to the Treasury Inspector General for Tax Administration (TIGTA).
A key responsibility of the IRS is to ensure that taxpayers comply with the Internal Revenue Code since small declines in compliance can “cost the country billions of dollars in lost revenue,” the watchdog said in an Oct. 15 report. Out of the $696 billion tax gap—when paid taxes are less than what’s owed—in tax year 2022, underreporting alone accounted for $539 billion, TIGTA said….