The Treasury Department projects that there will be a $7 trillion tax gap over the next decade and is hoping to reduce that through increased funding for the Internal Revenue Service.
Deputy Assistant Secretary for Tax Policy Mark Mazur testified before a House Ways and Means subcommittee that the IRS estimated there was a $381 billion net tax gap between 2011 and 2013.
“If we take those numbers and extrapolate them to today, assuming that the estimated tax gap grows with the economy, the estimated tax gap would be around $580 billion for 2019,” Mazur told lawmakers. “Over the coming decade, if we use the same sort of estimates, the gross tax gap is projected to total $7 trillion — obviously, that is a lot of money.”
Mazur said that, in part, the “large and growing” tax gap