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110555 1 (1979-10-11)

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UNITED STATES GENERAL ACCOUNTING OFFICE
        WASHINGTON, D.C. 20548


110555


FOR RELEASE ON DELIVERY
Expected at 10 a.m. EDT
Thursday, October 11, 1979


           STATEMENT OF

RICHARD L. FOGEL, ASSOCIATE DIRECTOR

    GENERAL GOVERNMENT DIVISION

            BEFORE THE

     SUBCOMMITTEE ON OVERSIGHT

 HOUSE COMMITTEE ON WAYS AND MEANS

 ON THECFORTS OF IRS' CRIMINAL

 INVESTIGATION DIVISION TO DETECT

      AND DETER UNDERREPORTE R5


Mr. Chairman and Members of the Subcommittee:

     Our testimony today deals with what IRS' Criminal

Investigation Division needs to do to enhance its ability

to detect and deter those persons who underreport their

income for tax purposes--a serious national problem. In

its August 31, 1979 report on unreported income, IRS esti-

mated that, during tax year 1976, at least $135 billion in

income went unreported and that, as a result, some $26 bil-

lion in potential tax revenues to the Government went uncol-

lected. Those are staggering estimates, yet they probably

are understated.

     IRS' study focused only on individual taxpayers and

certain types of illegal income. Had IRS sought to estimate


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