Listening to NPR this morning…apparently the tax gap is now almost $300 billion, yes billion. This gap, of course, is the difference between what is owed by tax payers and what is collected.
The head of the IRS mentioned that they are now focusing more on enforcement…but seemed to imply that they have limited resources.
I guess an obvious question for me is…why don’t they hire a LOT more investigators.
Yeah they are increasing funding…but why not a lot more?
Hell 10% of that tax gap would fund a lot more investigators…hardware etc… Up to a point, it would seem that any more money invested in investigators would be more than made up by increased collections. I’m sure that there is a point of diminishing returns, but I have a hard time believing that the IRS is near that point.
Or am I wrong?
Is this a PR issue…with a perception of too many investigators being a political liability?