This paper studies tax evasion at the top of the U.S. income distribution using IRS micro-data from (i) random audits …, (ii) targeted enforcement activities, and (iii) operational audits. Drawing on this unique combination of data, we … demonstrate empirically that random audits underestimate tax evasion at the top of the income distribution. Specifically, random …

authorities may detect their evasion in audits that use the new information reports. Using a variety of research designs, we find …