Lawmaker Vows To Press IRS To Narrow US 'Tax Gap'
WASHINGTON -(Dow Jones)- Senate Finance Committee Chairman Max Baucus, D-
Mont., said Wednesday he will continue to press the U.S. Treasury Department and
the Internal Revenue Service to step up efforts to collect up to $345 billion a
year of unpaid taxes.
The lawmaker's comments came in response to a new Treasury Department report
on closing the so-called "tax gap" created by unpaid taxes. While Baucus said
the report shows the IRS is working to improve tax administration and compliance
in the short-term, he urged it to detail specific long-term measures to improve
tax compliance and reduce the amount of lost tax revenues.
"With an ongoing economic recession, these billions of dollars in lost tax
revenue could help relieve undue tax burdens paid by honest families, and
contribute to long-term economic stability," Baucus said in a statement. He
said he will continue to press the Treasury Department and the IRS on the issue
and seek legislation to facilitate tax compliance and eliminate opportunities "
to underreport taxes or set up offshore tax schemes."
Baucus first sought input from the Treasury Department in early 2006 on
closing the tax gap, and requested an updated plan in May during a confirmation
hearing for Treasury Deputy Secretary Neal Wolin. He praised Wolin for
responding quickly, but complained that the plan he produced "lacks specifics on
long-term goals on improving the voluntary compliance rate and reducing the size
of the tax gap."
The IRS estimates current taxes paid account for 83.7% of taxes owed, a level
Baucus wants to see increase to 90% by 2017.
-By Judith Burns, Dow Jones Newswires, 202-862-6692; Judith.Burns@dowjones.com
(END) Dow Jones Newswires
07-08-091715ET
Copyright (c) 2009 Dow Jones & Company, Inc.
|