Payment Problem

The tax gap, the sum of failed payments through non-filing, underreporting and underpayments, is rising. In 2020, it is estimated to be $601 billion and in 2021, $688 billion. During the 2017-2019 period, the gap averaged $550 billion and $496 billion for the 2014-2016 period. For CY2021 the IRS expects to bring in $63 billion through late payments and enforcement, reducing the 2021 net tax gap to $625 billion.