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![irs tax audit definition irs audit Biden increase tax compliance costs and tax enforcement tax gap discussion IRS commissioner](https://taxfoundation.org/wp-content/uploads/2021/08/increasing-tax-compliance-costs-tax-gap-discussion-income-tax-filing-refund-e1630076429782-300x200.jpeg)
![IRS budget increase IRS technology modernization and IRS funding for IRS e-filing electronic tax filing](https://taxfoundation.org/wp-content/uploads/2022/08/IRS-budget-increase-IRS-technology-modernization-and-IRS-funding-for-e-filing-min-e1661538290807-300x200.jpeg)
IRS Is Raising More with Less, But New Funding Misses the Mark
The Inflation Reduction Act focused more on enforcement and hiring more auditors rather than programs that make it easier for taxpayers to comply with the code and the IRS to administer it.
6 min read![Tax compliance costs of IRS regulations tax complexity and tax simplification Chaotic IRS filing season shows flaws in IRS benefits distribution, IRS tax credit administration, IRS budget, and 2022 tax season with filing taxes Summary of the Latest Federal Income Tax Data, 2022 Update 2022 federal income tax data](https://taxfoundation.org/wp-content/uploads/2022/01/tax-filing-calculator-e1642614911929-300x200.jpeg)
The Tax Compliance Costs of IRS Regulations
In a pattern that has become all too common in recent decades, the newly enacted Inflation Reduction Act (IRA) added yet another layer of complexity to an already complex and burdensome federal tax code.
9 min read![IRS tax enforcement provisions to increase IRS budget and IRS funding See more on IRS expansion and Inflation Reduction Act IRS details](https://taxfoundation.org/wp-content/uploads/2022/08/IRS-tax-enforcement-and-administration-e1660748636255-300x200.jpeg)
How to Think About IRS Tax Enforcement Provisions in the Inflation Reduction Act
The Inflation Reduction Act increases the IRS’s budget by roughly $80 billion over 10 years. The money is broken into four main categories—enforcement, operations support, business system modernization, and taxpayer services—as well as a few other small items such as an exploratory study on the potential of a free-file system.
6 min read![Who bears the burden of corporate taxes? Learn more about who bears the burden of the corporate income tax (who actually pays corporate taxes) and the corporate tax burden](https://taxfoundation.org/wp-content/uploads/2021/05/linkedin-In-Stream_Wide___manufacturing_factory_worker_optimized-e1621373838916-300x158.jpg)
Who Gets Hit by the Inflation Reduction Act Book Minimum Tax?
In dollar terms, the industries that would account for the largest book minimum tax liabilities are manufacturing, at $73.2 billion, followed by finance, insurance, and management at $46.9 billion.
6 min read![Inflation Reduction Act book minimum tax Inflation Reduction Act accelerated depreciation change in corporate tax liablities, book tax, or corporate minimum tax congressional budget office cbo Eliminating the alternative minimum tax eliminating the AMT inflation indexing, inflation adjusting state tax codes, traditional CPI, index brackets for inflation, index for inflation](https://taxfoundation.org/wp-content/uploads/2018/06/Pass-Through-Deduction-Calculator-300x225.jpg)
Minimum Book Tax: Flawed Revenue Source, Penalizes Pro-Growth Cost Recovery
While exempting accelerated depreciation from the book minimum tax would reduce some of the economic harm of the tax, there remain many unresolved problems within the design and structure of the tax that make it a poorly chosen revenue option.
3 min read![Do tax increases reduce inflation. See higher taxes inflation policies and cause for inflation amid looming recession](https://taxfoundation.org/wp-content/uploads/2022/07/dc-us-capitol-building-e1658857063614-300x204.jpeg)
Push for Higher Taxes Is Misguided During a Time of Inflation and Looming Recession
Some 40 years ago, the U.S. dealt with high inflation and slow economic growth. Then as now, the solution is a long-term focus on stronger economic growth and sustainable federal budgets.
5 min read![Inflation Reduction Act book minimum tax Inflation Reduction Act accelerated depreciation change in corporate tax liablities, book tax, or corporate minimum tax congressional budget office cbo Eliminating the alternative minimum tax eliminating the AMT inflation indexing, inflation adjusting state tax codes, traditional CPI, index brackets for inflation, index for inflation](https://taxfoundation.org/wp-content/uploads/2019/10/economic-analysis-e1572294890385-300x201.jpeg)
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Tax Filing Season: Options for Improvement
Efforts to improve the taxpayer experience should focus on the IRS’s operations and include structural improvements to the tax code.
4 min read![Tax compliance costs of IRS regulations tax complexity and tax simplification Chaotic IRS filing season shows flaws in IRS benefits distribution, IRS tax credit administration, IRS budget, and 2022 tax season with filing taxes Summary of the Latest Federal Income Tax Data, 2022 Update 2022 federal income tax data](https://taxfoundation.org/wp-content/uploads/2022/01/tax-filing-calculator-e1642614911929-300x200.jpeg)
Chaotic IRS Filing Season Shows the Perils of Running Social Policy Through the Tax Code
As the deadline for tax filing nears, the IRS faces scrutiny for its backlog of returns, inaccessible taxpayer service, and delays in issuing certain refunds.
5 min read![Biden tax compliance plan to improve IRS funding and tax enforcement to improve tax collection](https://taxfoundation.org/wp-content/uploads/2021/08/Increasing-IRS-tax-enforcement-and-improving-tax-collection.-Learn-more-about-Biden-IRS-enforcement-and-funding-proposals-and-potential-tax-compliance-costs-for-taxpayers-e1629310385172-300x200.jpeg)
![tax fairness economic growth and funding government investments Creating Opportunity Through a Fairer Tax System Tax Foundation Finance Committee hearing](https://taxfoundation.org/wp-content/uploads/2021/04/tax-fairness-economic-growth-and-funding-government-investments.-capitol-300x157.jpeg)
10 Tax Reforms for Growth and Opportunity
By reducing the tax code’s current barriers to investment and saving and simplifying its complex rules, lawmakers would greatly enhance the ability of Americans to pursue new ideas, create more opportunities, and build financial security for themselves and their families.
40 min read![Worldwide investment at risk as business tax reform critical to capital investment costs expire and phase out Child Tax Credit changes and Child Tax credit reform options States should follow federal lead in postponing tax day](https://taxfoundation.org/wp-content/uploads/2020/03/linkedin-In-Stream_Wide___time-clock-tax-filing-compliance-e1584991459818-300x158.jpg)
Business Tax Refunds Must Be Provided Quickly During Future Downturns
A new report finds many businesses have yet to receive tax refunds that they are due from pandemic-related emergency relief. Future business tax relief must be provided in a timely manner during the next downturn, because delayed tax relief is not much better than no relief at all.
2 min read![2022 tax filing season IRS backlog federal deductibility Biden increase tax compliance costs and tax enforcement tax gap discussion IRS commissioner](https://taxfoundation.org/wp-content/uploads/2021/08/increasing_tax_compliance_costs_tax_gap_discussion_income_tax_filing_refund_optimized-e1630077994476-300x200.jpeg)
Bumpy Tax Filing Season Ahead Due to IRS Backlog and Pandemic Tax Relief
The National Taxpayer Advocate argued the IRS telephone service “was the worst it has ever been” in 2021, with an answer rate of about 11 percent.
4 min read![](https://taxfoundation.org/wp-content/uploads/2021/10/Louisiana-tax-reform-e1634834768922-300x225.jpeg)
Louisiana Voters Have Chance to Simplify Taxes and Lower Burdens
Passage of Louisiana Amendments 1 and 2, which are aimed at the sales tax and individual and corporate income taxes, respectively, would substantially simplify the Pelican State’s tax code and provide tax relief in both the short and long term.
8 min read![2021 filing season coronavirus relief legislation Earned Income Tax Credit reforms, EITC reforms, EITC reform, Earned Income Tax Credit Reform, improper payments, improper payments, taxpayer advocate](https://taxfoundation.org/wp-content/uploads/2019/07/tax-filing-individual-income-300x200.jpeg)
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![2022 tax filing season IRS backlog federal deductibility Biden increase tax compliance costs and tax enforcement tax gap discussion IRS commissioner](https://taxfoundation.org/wp-content/uploads/2021/08/increasing_tax_compliance_costs_tax_gap_discussion_income_tax_filing_refund_optimized-e1630077994476-300x200.jpeg)
5 Things to Consider in the Tax Gap Discussion
Increasing tax compliance is a major part of the Biden administration proposal to raise revenue for physical and social infrastructure. Reducing the tax gap—the difference between taxes owed and taxes paid—is a good way to raise revenue, but it doesn’t come without trade-offs, and it’s important to go about it in the right way.
3 min read![Biden tax compliance plan to improve IRS funding and tax enforcement to improve tax collection](https://taxfoundation.org/wp-content/uploads/2021/08/Increasing-IRS-tax-enforcement-and-improving-tax-collection.-Learn-more-about-Biden-IRS-enforcement-and-funding-proposals-and-potential-tax-compliance-costs-for-taxpayers-e1629310385172-300x200.jpeg)
Considering Trade-offs to Improving Tax Collections
Recent Biden administration proposals rely heavily on revenue from better IRS tax collections to fund spending initiatives. The American Families Plan uses several avenues to reduce the tax gap (or the difference between taxes paid and taxes owed), from increasing the IRS’s tax enforcement budget to improving information technology and expanding reporting requirements.
4 min read![return-free filing, return-free tax filing 2018 tax data, effects of the Tax Cuts and Jobs Act, 2018 tax return data, federal tax reform impact](https://taxfoundation.org/wp-content/uploads/2019/07/tax-compliance-1040-costs-e1562946587566-300x200.jpeg)
Return-Free Filing: A Better Fit for a Better Tax Code
Return-free filing could reduce compliance costs for many taxpayers, but would only be as good as the system it is administrating.
4 min read