A House Oversight Subcommittee held a hearing on IRS efforts to close the tax gap and prevent identity theft.
The Subcommittee on Government Organization, Efficiency and Financial Management examined the causes of the tax gap and recommendations to increase compliance and minimize problems.
The most recent IRS estimate shows that there is a $385 billion difference between the amount of federal taxes owed and the amount IRS ultimately collects.
The Government Accountability Office has recommended that the IRS expand to third-party information reporting, reasoning that taxpayers are more likely to report their income accurately when the information is reported by a third party directly to IRS.
Witnesses include IRS Deputy Commissioner Steven Miller, IRS National Taxpayer Advocate Nina Olson, Treasury Department Inspector General for Tax Administration Russell George and Government Accountability Office Strategic Issues Director James White.