Taxpayers Show Strong Support For Compliance, Claims IRS

by Leroy Baker, Tax-News.com, New York

09 March 2006

American taxpayer support for overall compliance has reached an all-time high, according to an annual survey commissioned by the Internal Revenue Service Oversight Board.

The 2005 IRS Oversight Board Taxpayer Attitude Survey, conducted by NOP World, showed that 88% of taxpayers feel that it is “not at all” acceptable to cheat on your income taxes - the highest level recorded since tracking began in 1999.

Attitudinal support for compliance also remains strong, with nearly three out of four people questioned agreeing that it is everyone’s civic duty to pay their fair share of taxes (72%).

Support for turning in tax cheaters also surpassed last year’s record high, with nearly one of every three taxpayers (30%) agreeing that it is everyone’s personal responsibility to report people who cheat on their taxes, a six point increase from 2004 and 11 points from 2003.

Moreover, the survey found that over eight out of ten taxpayers (82%) say that their own personal integrity has the greatest influence on whether or not they report and pay their taxes honestly – double the number who cite any other factor.

IRS Oversight Board Chairman Raymond T. Wagner, Jr. observed that: “There seems to be many more taxpayers who believe it’s important to follow the rules and pay what’s owed than there are those who feel it is okay to get a free ride – that’s great news."

He added that: "And while most taxpayers continue to feel strongly that the IRS should target large corporations and high-income individuals who cheat on their taxes, they also believe it is important to ensure compliance from other groups, such as small businesses and lower income taxpayers.

The study also found widespread support for additional IRS funding for both assistance and enforcement. Sixty-seven percent of taxpayers believe the IRS should receive extra funding for taxpayer assistance and 63 percent favor additional funding for enforcement.

Mr Wagner continued: “What these numbers tell us again this year is that the American people want balance in their tax administration system. While they want the IRS to actively pursue tax cheating, they also value the important services the IRS offers to help them comply with a very complex Tax Code."

He concluded: "We believe that one of our most important responsibilities is to ensure that the IRS provides this critical balance between enforcement and customer service."

Recommended