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Proposed Boost in IRS Funding Again Raises Questions on Tax Gap

Aug. 4, 2022, 6:47 PM

The increase in IRS enforcement funding in the Democrat-brokered reconciliation package has reignited Republican skepticism on what is included in the tax gap—the difference between taxes paid and taxes owed.

“We have asked the Joint Committee of Taxation to tell us where is this tax gap,” Sen. Mike Crapo (R-Idaho) said Wednesday in a news conference about the reconciliation package.

Democrats, including Sen. Elizabeth Warren (D-Mass.) and the Biden administration, have pointed to the tax gap as a main symptom of the IRS’s failure ...