April 28,2016

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Wyden Calls for Crackdown on Corporate Tax Gap

WASHINGTON Senate Finance Committee Ranking Member Ron Wyden, D-Ore. today urgently reinforced that the Internal Revenue Service (IRS) needs to put a system in place to identify the sources of corporate tax avoidance, evasion and noncompliance.   

Wyden’s direction builds on the release of information by the IRS today pointing to an average annual gross tax gap of $458 billion for 2008 - 2010, up from $450 billion in 2006.   The IRS report also highlights that the corporate tax gap hit an annual gross average of $44 billion across these years.  

“It is absolutely unacceptable that the country has lost more than $400 billion dollars over the past ten years from corporations dodging their tax payments,” said Wyden. “This is money that could be put to good use shoring up critical programs such as Medicare. It’s time the IRS put an effective tracking and auditing system in place to locate this lost money.”

Wyden wrote a letter to IRS Commissioner John Koskinen last February, in advance of budget hearings with U.S. Department of the Treasury and IRS, calling for IRS action to track the corporate tax gap.

The letter can be found here. The response from the IRS can be found here