GAO: Information Reporting for Charitable Cash Contributions Won't Close Tax Gap

Well, duh:

Individual taxpayers who misreport charitable cash contributions they deduct on their tax returns contribute to the tax gap. ... One approach that tends to result in high levels of taxpayer compliance is information reporting to IRS by third parties on taxpayer transactions. GAO was asked to (1) provide information on characteristics of individual taxpayer misreporting of charitable cash contributions, (2) provide information on actions that IRS takes to address misreporting, and (3) evaluate potential benefits and challenges associated with requiring information reporting for charitable cash contributions. ... In email comments on a draft of this report, IRS agreed with GAO's overall conclusion that requiring information reporting for charitable cash contributions may not be an effective way to improve compliance.

The IRS continues with its bright idea that to close the tax gap, it's better to harass the compliant rather than go after the non-compliant.

Your faith in the IRS continues to grow, doesn't it?

(Via, once again, TaxProf Blog. What would I do without that guy?)