Homage to Information Returns‪.‬

I. INTRODUCTION One of the most important administrative features of the nation's tax system involves the issuance of information returns (such as Form W-2s and Form 1099s). Most studies indicate that such returns are pivotal in causing taxpayers to be forthright in their reporting practices. These same studies indicate that in the absence of such returns, taxpayer compliance plummets. (1) To close the tax gap--the difference between what taxpayers owe and what they actually pay (2)--Congress should ask itself the following question: without causing undue administrative burdens, can Congress expand the issuance of the information returns to encompass an even broader array of taxable events and transactions?