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UC Law Journal

Abstract

In 2001, the IRS estimated the gross tax gap was approximately $345 billion dollars. Each dollar not collected represents lost revenue for the federal government, the collection of which would be contributed to federally-funded public works. Within the tax gap, underreporting of individual income represented over half of uncollected revenue. Among that group of noncompliant taxpayers, most are generally not subject to third-party reporting and are therefore capable of choosing to file or to evade. This Note discusses the impact of high-profile tax prosecutions on social norms and values as an avenue to address and encourage voluntary compliance.

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