Passed in 2022, the Inflation Reduction Act includes $80 billion in increased funding for the Internal Revenue Service (IRS), much of which is intended for increased enforcement and audits. The "tax gap" is the difference between taxes paid and taxes owed by law. The Department of the Treasury estimates a "gross tax gap" of nearly $700 billion. 

NSBA fully supports efforts to collect legally owed tax revenues, but not at the undue expense and privacy of honest, hard-working entrepreneurs. 

Any IRS proposals that focus new resources only on enforcement should be rejected. Tax simplification and education is the most effective and equitable way to improve compliance and to reduce the tax gap.

Urge your lawmakers TODAY to support common-sense ways to close the tax-gap.