Treasury Inspector General for Tax Administration (TIGTA) – The Large Case Examination Selection Method Consistently Results in High No-Change Rates June 22, 2020. Reference Number: 2020-30-031: “The IRS compiles Tax Gap data to periodically update appraisals of the nature and extent of tax payment noncompliance for use in formulating tax administration strategies. The IRS estimates the average annual gross Tax Gap for Tax Years 2011 through 2013 to be $411 billion. The largest component, $352 billion, is attributable to under reporting of taxes. Large corporation (assets of $10 million or more) tax noncompliance contributes an estimated $26 billion to the average annual under reporting Tax Gap….Of the 10,755 returns, 7,831 returns (73 percent) were systemically selected, i.e., were selected as the primary tax return to be examined. The overall no-change rate for these returns was about 55 percent (4,327 of the 7,831), and the no-change rate was generally high across all activity codes for businesses with assets of $10 million or more (ranging from 44 percent to 61 percent)…”