Tax gap.

in irs •  last year 

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We are on pace for a $7 trillion gap over the next decade in the difference between taxes paid and taxes owed. Imagine it like if everyone paid exactly the amount of taxes they owed according to the current tax law.

~81% of this gap is from people underreporting income/overclaiming deductions and credits.

Given the difficulty in estimating underreporting among wealthy taxpayers, this is likely an underestimate of the true tax gap.

Estimates are derived from the National Research Program, which is the audit the IRS does of a randomly selected pool of taxpayers to understand tax compliance.

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How is the IRS OWED that money?