Recent Patterns in IRS Enforcement
As discussed in Chap. 2, the tax gap remains a significant concern to policymakers who would prefer the gap be close both because of fairness to the vast majority of taxpayers who voluntarily pay their taxes in full and as a means to deter further tax cheating and raise tax revenues. The primary purpose of this chapter is to discuss the two principal forms of IRS enforcement: Auditing and Criminal Enforcement. A central purpose of the empirical studies reported in later chapters is to develop an understanding of the linkage between enforcement and levels of taxpayers’ noncompliance. We begin with a discussion of the role of IRS audits.