IRS Releases Updated Tax Gap Estimates

The IRS released a new set of tax gap estimates on tax years 2014 through 2016 showing the estimated gross tax gap increased to $496 billion, a rise of more than $58 billion from the prior estimate.

Underreporting income remains the main contributor to the gap at nearly $400 billion of the $496 billion total. Income from digital assets and crypto currency are identified as areas of noncompliance. The IRS uses this information to direct its compliance resources.

Click here to read the IRS information page.

The full 36-page report can be found here.