Tax cheats come clean

[bpwallace49]

....

.12,000 tax cheats come clean under IRS program

By STEPHEN OHLEMACHER - Associated Press |

 

WASHINGTON (AP) — About 12,000 tax cheats have come clean under a program that offered reduced penalties and no jail time to people who voluntarily disclosed assets they were hiding overseas, the Internal Revenue Service announced Thursday.

 

Those people have so far paid $500 million in back taxes and interest. IRS Commissioner Doug Shulman said he expects the cases to yield substantially more money from penalties that have yet to be paid.

 

The voluntary disclosure program, which ran from February to last week, is part of a larger effort by the IRS to crack down on tax dodgers who hide assets in overseas accounts. The agency stepped up its efforts in 2009, when Swiss banking giant UBS AG agreed to pay a $780 million fine and turn over details on thousands of accounts suspected of holding undeclared assets from American customers.

 

Since then, the IRS has opened new enforcement offices overseas, beefed up staffing and expanded cooperation with foreign governments. A similar disclosure program in 2009 has so far netted $2.2 billion in back taxes, penalties and fines, from people with accounts in 140 countries, Shulman said.

 

Between the two disclosure programs, a total of 30,000 tax cheats have come clean.

 

"The world has clearly changed," Shulman said. "We have pierced international bank secrecy laws, and we're making a serious dent in offshore tax evasion."

 

The IRS has long had a policy that certain tax evaders who come forward can usually avoid jail time as long as they agree to pay back taxes, interest and hefty penalties. Drug dealers and money launderers need not apply. But if the money was earned legally, tax evaders can usually avoid criminal prosecution.

 

Fewer than 100 people apply for the program in a typical year, in part because the penalties can far exceed the value of the hidden account, depending on how long the account holder has evaded U.S. taxes.

 

The latest disclosure program offered reduced penalties, but it was no free walk. Taxpayers were required to pay up to eight years of back taxes and a penalty of up to 25 percent of the highest annual amount in the overseas account from 2003 through 2010.

 

The disclosure programs have also provided the IRS with information about banks and advisers who have assisted people with offshore tax evasion. Shulman said the agency will use the information to continue its enforcement efforts.

 

"Unlike a few years ago, it's very clear now that there's a real price to be paid for people who think they can hide offshore and not pay their taxes," he said.

 

2.2 billion in 2 years?

[yo mama]

2.2 billion in 2 years?

Anyone notice how citizens face criminal prosecution if they don't pay US tax on their foreign earnings, but corporations don't have to pay US tax on foreign earnings kept offshore, let alone face criminal charges?

[bpwallace49]

Anyone notice how citizens face criminal prosecution if they don't pay US tax on their foreign earnings, but corporations don't have to pay US tax on foreign earnings kept offshore, let alone face criminal charges?

 

Since corporations are now "people", maybe that will change?

 

And I wonder if that scumbag Charlie Rangel is in that number?

[Ursa Majoris]

Since corporations are now "people", maybe that will change?

They are only people when they want to be. At other times, they aren't.

[CowboyGal2011]

Around 100,000 federal employees owe the U.S. roughly $1 billion in back taxes and one Republican lawmaker thinks they should pay up or lose their jobs.

[Perchoutofwater]

Anyone notice how citizens face criminal prosecution if they don't pay US tax on their foreign earnings, but corporations don't have to pay US tax on foreign earnings kept offshore, let alone face criminal charges?

 

Corporations should have the same tax obligations as individuals IMO. You will get no argument from me there.

Edited September 16, 2011 by Perchoutofwater

[yo mama]

Corporations should have the same tax obligations as individuals IMO. You will get no argument from me there.

The only people who disagree are those profiting from the loophole, and those who buy into the fantasy that such corporate give aways are "job creators." But there's no need to point partisan fingers at the GOP leadership - there's chivesbaggery enough to go around!

 

For example, GE earned $14,200,000,000 in profits in 2010, but for the second year in a row paid absolutely no US corporate income taxes. GE supported President Obama’s 2008 presidential campaign. The company’s CEO, Jeffrey Immelt, was reward by getting hired on as the Obama administration's chairman of the President’s Council on Jobs and Competitiveness. Well, that's seems natural... considering GE laid off 21,000 American workers and closed 20 factories under Immelt's leadership, and about half GE's workforce is now located outside of the US.

 

GE is also the world’s largest industrial corporation and leads all corporations in spending on lobbying Washington for favorable legislation and policies.

 

The solution? Torches and pitchforks, people. Torches and pitchforks.

[Ursa Majoris]

The solution? Torches and pitchforks, people. Torches and pitchforks.

It won't be long now.

[yo mama]

It won't be long now.

I wish. The government has done a stunning job of dividing the country on irrelevant social topics - we're too lazy and distracted to exert the kind of force that's actually needed.

[Ursa Majoris]

I wish. The government has done a stunning job of dividing the country on irrelevant social topics - we're too lazy and distracted to exert the kind of force that's actually needed.

Karl Rove claims that tactic as his own but divide and conquer has been around for a long time.