“The IRS isn’t typically considered a tech-savvy or advanced organization. Some of its core IT systems, like the Individual Master File, measure their age in decades, and other applications still rely on the COBOL programming language. However, when it comes to tracking and flagging high-income earners who fail to file tax returns, it’s not technology that’s limiting enforcement — it’s a lack of people and priorities.”
“Every year, more than eight million Americans skip out on their filing obligations, resulting in approximately $39 billion in lost revenue every tax season — part of a yearly $441 billion “tax gap” between the dollars IRS could collect and what it actually does. According to a new report from Department of Treasury auditors, the IRS has failed to prioritize a program that uses existing software and staff to pursue high-income earners, and during some years the agency put a “pause” on the work entirely.” Read the full article here.
Source: Old tech can help IRS catch wealthy tax cheats – By Derek B. Johnson, June 1, 2020. FCW.