[ad_1]
Monday, March 13, 2023
Multibillion-Greenback Tax Questions
James Alm (Tulane; Google Scholar), Jay A. Soled (Rutgers; Google Scholar) & Kathleen DeLaney Thomas (North Carolina; Google Scholar), Multibillion-Greenback Tax Questions, 84 Ohio St. L.J. __ (2023):
Tax compliance in the US traditionally hovers within the 80 p.c vary, costing the nation roughly half a trillion {dollars} yearly in uncollected tax income. To foster higher tax compliance, the Inner Income Service (IRS) ought to make use of no matter instruments are at its disposal. Customary deterrence concept argues that growing the audit price and imposing stiffer penalties would foster higher tax compliance.
There are political headwinds, nevertheless, that strongly recommend that these approaches usually are not at present viable. As a substitute, there’s a low-cost methodology that would yield higher tax compliance. Drawing on latest and compelling social science analysis, the IRS ought to ask extra information-revealing questions on tax returns. By partaking on this necessary train of strategic inquiries, twin advantages are more likely to emerge: taxpayers could be extra more likely to report truthfully to keep away from acts of fee (e.g., mendacity); and the IRS could be in a greater strategic place as a result of it could possess extra, related data on taxpayer actions.
https://taxprof.typepad.com/taxprof_blog/2023/03/multibillion-dollar-tax-questions.html
[ad_2]