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I.R.S. Tax Gap Data Delayed Under Trump

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The Trump administration halted publication of the I.R.S. annual tax gap estimate, which measures uncollected taxes. This delay masks the fiscal impact of reduced audit capacity after the agency lost roughly a quarter of its workforce and budget cuts. The I.R.S. last released a $700 billion estimate for 2022 but has not issued a 2023 figure, despite promising updates. New I.R.S. chief Frank Bisignano questions the metric, favoring an “addressable tax gap” approach and emphasizing smarter enforcement using AI and analytics. Critics, including former Treasury official Natasha Sarin, warn that without current data, policymakers cannot gauge the damage from the agency’s downsizing. The absence of the report continues a broader Trump‑era pattern of limiting or altering federal data collection, echoing actions at the Pentagon and Bureau of Labor Statistics.

An I.R.S. spokesman said methodology updates are underway and the figure will be released when ready. Bisignano noted revenue from enforcement is rising this year and does not rely on auditor counts. He appointed Vincent La Padula from JPMorgan Chase to lead the agency’s tax‑gap work. The delayed 2023 estimate would not yet reflect the administration’s downsizing, but its absence hampers assessment of whether more taxes are going unpaid under Trump.

Historically, the tax gap has been used to argue for increased I.R.S. resources. In 2021, former I.R.S. Commissioner Charles P. Rettig, a Trump appointee, projected a $1 trillion annual gap, calling for a larger budget. Bipartisan interest in bolstering the agency waned amid the ongoing data suppression.