Institute on Taxation and Economic Policy (ITEP)

Deficit

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Large and Growing Tax Gap Underscores the Need to Adequately Fund the IRS

• By Jon Whiten

New figures released show the difference between what Americans paid and owed in taxes grew to $688 billion in 2021, a significant jump from previous estimates. This new data underscores that last year’s boost to IRS funding under the Inflation Reduction Act was absolutely necessary and should be protected by lawmakers.