Tax Administration: Impact of Compliance and Collection Program Declines on Taxpayers

Many view the IRS compliance & collection programs (CCP) -- such as audits to determine whether taxpayers have accurately reported the amount of taxes that they owe & collection follow-up with taxpayers who have not paid what is owed -- as critical for maintaining the public's confidence in our tax system. But declines in CCP have been dramatic. From FY 1996-2000, the number of individual tax returns audited by IRS declined by over 60%. Further, IRS was unable to pursue many delinq. taxpayers. This report: describes the changes since 1996 in IRS CCP, & the factors contributing to the changes; determines how the program changes have affected taxpayers; & determines how IRS addressed the program changes in its strategic assessments. Also includes a 17-page report, Tax Deductions: Further Estimates of Taxpayers Who May Have Overpaid Federal Taxes by Not Itemizing.ÓJames R. White is the author of 'Tax Administration: Impact of Compliance and Collection Program Declines on Taxpayers' with ISBN 9780756728335 and ISBN 0756728339.