In spite of efforts by the Internal Revenue Service to improve taxpayer compliance, the rate at which taxpayers pay their taxes voluntarily and on time has ranged from roughly 81 percent to about 84 percent over the past three decades, according to Michael Brostek, the director of tax issues for the Strategic Issues Team at the Government Accountability Office.The tax gap, measured by figures from the National Research Program's audit data from 2001 to 2004, is the difference between the amounts taxpayers pay voluntarily and on time, and what they should pay under the law.
In an appearance before the Senate Finance Committee Subcommittee on Taxation and IRS Oversight, Brostek noted that each 1 percent reduction in the net tax gap would yield $3 billion annually in additional tax revenue.
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