Tax Fraud: The Federal Government Loses an Estimated $116 Billion to $304 Billion Annually

What GAO Found GAO estimated that annual federal tax fraud loss is between $116 billion and $304 billion based on data and information from 2018 through 2024. GAO’s estimate is informed by data on Internal Revenue Service (IRS) cases of fraud and potential fraud, potential fraud in the tax gap, and tax evasion from economic activities purposefully hidden from the government (i.e., shadow economy). The estimated range reflects approximately 2 percent to 6 percent of estimated tax owed to the federal government (tax liability) if applied to tax year 2022, the most recent year for which an estima