Multi-Agent Simulation of Taxpayer Reporting Compliance. Kim M. Bloomquist U.S. Internal Revenue Service. Disclaimer The views expressed here are those of the author and should not be interpreted as those of the U.S. Internal Revenue Service (IRS). Outline.
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Kim M. Bloomquist
U.S. Internal Revenue Service
The views expressed here are those of the author and should not be interpreted as those of the U.S. Internal Revenue Service (IRS).
2,129 Tax Preparers
RegionIRCM Architecture(Agent Hierarchy)
Change Amount ($1000)
Imputation of Pension Income
ZoneReference Groups in ITCM
Paid Preparer Scenario
Paid Preparer Illegal Tax Scheme Starting in Zone 11
Total Tax on reported income & after offsets
SOI = $521.3 million
Tax calculator = $519.9 million
Difference = $1.4 million (0.27%)
Tax Calculator Loop
Issue AUR Notices
Process Stop Filers
Update Learning Behavior
Update Tax Agency Audit Targeting
Generate Tables & Charts
Running a Simulation:Top-Level View
50% Increase and 50% Decrease in Number of Audits Performed
A=100% random audits, prob. audited taxpayer increases compliance=0.50 & decrease=0.50 ; B=A except 5% random audits, minimum 5 audits per audit class, maximum 10% coverage; C=B except 100% taxpayers increase compliance; D=C except prob. taxpayer increases compliance=0.50 if a reference group member is audited (prob. no change=0.50), reference group size=3.