IRS Needs More Than Audits to Find Tax Cheats, Former Chief Says

May 11, 2021, 9:33 PM

The U.S. Internal Revenue Service needs additional tools beyond audits to find individuals and businesses that are underpaying their federal tax bills, a former commissioner of the agency told a congressional panel on Tuesday.

“Simply scaling up what the IRS does today will not produce the desired results,” Charles Rossotti said at a Senate Finance subcommittee hearing. “As important as audits are, currently, all of IRS audit activity only recovers about 2.5% of the tax gap.”

Rossotti, who was IRS commissioner from 1997-2002, said the agency requires more information about bank account flows for high-income taxpayers and upgraded computer systems ...

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