Drudge Retort: The Other Side of the News
Tuesday, June 03, 2014

More than 77,000 foreign banks, investment funds, and other financial institutions have agreed to share information about US account holders with the IRS as part of a crackdown on offshore tax evasion, the Treasury Department announced Monday. Under the law, foreign banks that don't agree to share information with the IRS face steep penalties when doing business in the U.S. The law requires American banks to withhold 30 percent of certain payments to foreign banks that don't participate in the program -- a significant price for access to the world's largest economy. "This success will help us in our goal of stopping tax evasion and narrowing the tax gap," said Robert Stack, deputy assistant treasury secretary for international tax affairs.

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Admin's note: Participants in this discussion must follow the site's moderation policy. Profanity will be filtered. Abusive conduct is not allowed.

I'm thinking are some peoples who are gonna regret ---- with the IRS.

#1 | Posted by donnerboy at 2014-06-03 09:43 PM | Reply | Flag:

Best news involving the IRS since they caught Al Capone.

#2 | Posted by Tor at 2014-06-03 09:44 PM | Reply | Flag: | Funny: 2

Some folks are having a bad night. I sympathize so much.

#3 | Posted by danni at 2014-06-03 10:11 PM | Reply | Flag:

"This success will help us in our goal of stopping tax evasion and narrowing the tax gap," - FTA

How about a goal of just having the collectors pay their own taxes, that would be a good start.

With $3.3 Billion Owed, Should Tax-Delinquent Federal Employees--Including IRS--Be Fired?
www.forbes.com

#4 | Posted by AndreaMackris at 2014-06-03 10:14 PM | Reply | Flag:

"How about a goal of just having the collectors pay their own taxes, that would be a good start. "

How about if we start with those who owe the most? We'll eventually get to those federal employees but first let's concentrate on those who owe the most.

#5 | Posted by danni at 2014-06-03 10:22 PM | Reply | Flag:

So far on this thread, none of the deflection involve tax evasion via-a-vie foreign banks which has been an ongoing program that caught Mitt Romney in it's web several years ago. At the time, not all foreign banks were on board voluntarily. This is just a continuation of the IRS's efforts to stop the flow of using foreign banks to avoid paying taxes

I have a feeling a lot of these tax evaders will fess up voluntarily and accept the amnesty offer (if there is one) rather than see their name published on a list.

#6 | Posted by Twinpac at 2014-06-03 11:51 PM | Reply | Flag:

With $3.3 Billion Owed, Should Tax-Delinquent Federal Employees--Including IRS--Be Fired?
www.forbes.com

#4 | POSTED BY ANDREAMACKRIS AT 2014-06-03 10:14 PM | FLAG:

Sure, if they also take the jobs from all the other tax evaders too. Wouldn't that just be wonderful? And by wonderful, I mean stupid and vindictive.

#7 | Posted by BruceBanner at 2014-06-04 12:28 AM | Reply | Flag: | Funny: 1

Under the law, foreign banks that don't agree to share information with the IRS face steep penalties when doing business in the U.S.

It is hard to imagine this action under a republican administration. Just another reason for republicans to hate Obama.

#8 | Posted by FedUpWithPols at 2014-06-04 07:01 AM | Reply | Flag:

I have a feeling a lot of these tax evaders will fess up voluntarily and accept the amnesty offer (if there is one) rather than see their name published on a list.

The amnesty period is over. Now the penalties for non-compliance will be 50% of the highest account balance for each open year.

I comply with the Internal Revenue Code, why is it so hard for the wing dings to demand that the wealthy do the same?

Everyone that does not have an offshore account hiding income ends up paying more in taxes for to support the lifestyle of these "job creaturs".

#9 | Posted by 726 at 2014-06-04 07:29 AM | Reply | Flag: | Funny: 1 | Newsworthy 1

Wonder how many of those banks have accounts held by Mitt Romney?

#10 | Posted by danni at 2014-06-04 07:54 AM | Reply | Flag:

DANNI

Mitt took the amnesty and paid the taxes plus penalties for his Swiss accounts but that's not to say he didn't (or still does) have other accounts in the foreign banks that did not join the Swiss regarding lists of American tax dodgers.

That deal, in fact, was one of the reasons he refused to release some of his tax returns. The truth would have come out while he was trying to get elected.

But let's not jump to conclusions. We'll probably never know. If, by chance, Mitt's name is on one of those other lists, he'll find a way to weasel out of disclosure anyway.

The important thing is that there are lots of other tax evaders in this country and it's long past due that they be corralled and forced to pay up. Unfortunately, it's probably going to take years to get them to pony up.

#11 | Posted by Twinpac at 2014-06-04 08:17 AM | Reply | Flag:

Wonder how many of those banks have accounts held by Mitt Romney?

#10 | POSTED BY DANNI AT 2014-06-04 07:54 AM | REPLY | FLAG:

Mitt is the modern day GOP hero. He make money by doing nothing, pays a tax rate 1/3 of what others pay and hides his assets overseas to illegally reduce those taxes even further.

He could not be any more GOP unless he was setting low income housing complexes on fire.

#12 | Posted by 726 at 2014-06-04 08:26 AM | Reply | Flag:

77,000 sounds like a really high number.

But are there still a high number of safe tax havens for the wealthy to park their cash?

IOW, is this really a big deal or does it just seem like one?

don't get me wrong.....I love this and it was a necessary step.

Obama made a good move here....he made all of us happy and he made Wall Street happy as well. If a wealthy person no longer enjoys a favorable tax situation by dealing with a foreign bank, he/she may as well just pick up the phone and call a Wall Street firm and park their money there.

#13 | Posted by eberly at 2014-06-04 09:28 AM | Reply | Flag:

Everyone needs to look at the other side of this issue. There are many Americans living overseas that for obvious reasons must use foreign bank accounts. Many of us are married to foreigners and live in that foreign country. We pay taxes to the country we live in and then report this to the IRS as well. I am a law abiding citizen that is being treated like a criminal.

In addition, I believe this law can in turn endanger the lives of fellow Americans. I dont feel personally threatened because I live in Norway. How about the countries, like the Mid-East. Once the banks have information of suspected Americans, this information is also turned over to the local government. Then round up the Americans and hold them hostage until someone decided to trade a few more terrorists. Or cut their heads off like they were doing back in 2004.

#14 | Posted by Shardanie at 2014-06-04 09:29 AM | Reply | Flag:

I am a law abiding citizen that is being treated like a criminal.

If you don't file a US tax return, you are not abiding the law. Is that too hard?

Once the banks have information of suspected Americans, this information is also turned over to the local government. Then round up the Americans and hold them hostage until someone decided to trade a few more terrorists.

Point to an example of this actually happening instead of just in your fraidy cat mind.

#15 | Posted by 726 at 2014-06-04 09:48 AM | Reply | Flag:

Good news. Go after these losers, er, filthy rich losers. Not that the bankers with sell out their really "good" clients. You know, the ones that make "contributions".

#16 | Posted by CrisisStills at 2014-06-04 09:55 AM | Reply | Flag:

with = will

#17 | Posted by CrisisStills at 2014-06-04 09:56 AM | Reply | Flag:

"If a wealthy person no longer enjoys a favorable tax situation by dealing with a foreign bank, he/she may as well just pick up the phone and call a Wall Street firm and park their money there."

And still enjoy a much lower tax rate than someone who works for their money. The rich, if they pay at all, are only asked to pay half what a working person in the same income bracket would pay. Ronald Reagan thought this was very wrong.

#18 | Posted by danni at 2014-06-04 10:10 AM | Reply | Flag:

"Then round up the Americans and hold them hostage until someone decided to trade a few more terrorists. Or cut their heads off like they were doing back in 2004."

Gee, you mean the rich folks need to be aware of the potential consequences of their actions? Not that I consider your paranoid scenario as realistic but even if it were, those who attempt to commit tax fraud need to consider all of the consequences they open themselves up to when they commit the crime.

#19 | Posted by danni at 2014-06-04 10:18 AM | Reply | Flag:

This IRS rules on foreign income, like most laws, have a greater negative impact on working people in the middle class. Rich people have lawyers and tax accountants. Not everyone working outside the US is rich. Have you read the entire tax code, can you be sure you're not breaking the law?

#20 | Posted by visitor_ at 2014-06-04 10:21 AM | Reply | Flag:

Danni, Living and working outside the US is not attempting to commit tax fraud.

#21 | Posted by visitor_ at 2014-06-04 10:23 AM | Reply | Flag:

This IRS rules on foreign income, like most laws, have a greater negative impact on working people in the middle class.

There is a foreign earned income exclusion, but you have to file the return to use it.

#22 | Posted by 726 at 2014-06-04 11:50 AM | Reply | Flag:

One thing, I currently pay taxes in US and Spain. One thing I will never do is become a US citizen. Under US tax laws, once a citizen, income tax payable to Uncle Sam for life, even if living abroad. Crazy.

#23 | Posted by CrisisStills at 2014-06-04 11:51 AM | Reply | Flag:

The amnesty period is over. Now the penalties for non-compliance will be 50% of the highest account balance for each open year.

The voluntary disclosure program is still open which caps the penalty at 27.5%. Many other taxpayers are doing "quiet disclosures" by amending their returns as well. If they make it three years without being targeted then they are off.

The negative effect of this is that US citizens who want to expand their business overseas are having a very difficult time opening bank accounts in foreign jurisdictions. I have many oil and gas clients who have no intention of keeping profits overseas (meaning they operate in foreign jurisdictions through disregarded entities) and they can't do business because they can't open bank accounts do to their US citizenship.

This legislation and the underlying regulations is akin to using a nuclear bomb to kill a fly. Congress and the IRS should have used the scalpel approach. I have many middle class dual citizen clients who are getting nailed by the compliance costs when their return should typically be less than $1,000 to prepare.

#24 | Posted by taxman at 2014-06-04 01:31 PM | Reply | Flag: | Newsworthy 1

One thing, I currently pay taxes in US and Spain. One thing I will never do is become a US citizen. Under US tax laws, once a citizen, income tax payable to Uncle Sam for life, even if living abroad. Crazy.

I would exchange a worldwide tax system for a territorial system with a VAT (this is what many industrialized nations do) any day of the week.

#25 | Posted by taxman at 2014-06-04 01:36 PM | Reply | Flag:

#24

NW....I didn't realize that this would create unnecessary trouble for otherwise law abiding folks who merely need the ability to mobilize business around the globe.

#26 | Posted by eberly at 2014-06-04 01:40 PM | Reply | Flag:

I am a law abiding citizen that is being treated like a criminal.
If you don't file a US tax return, you are not abiding the law. Is that too hard?

I do file taxes with the US. I pay taxes to Norway. I do not make enough money, not anywhere even close, to meet the requirements to pay more tax money to the US. But I do file every year. There are a couple million Americans living outside of the US. Most of us are not "rich".

Once the banks have information of suspected Americans, this information is also turned over to the local government. Then round up the Americans and hold them hostage until someone decided to trade a few more terrorists.
Point to an example of this actually happening instead of just in your fraidy cat mind.

Ever heard of Nick Berg? How about Eugene Armstrong? Try Google.

#27 | Posted by Shardanie at 2014-06-04 01:47 PM | Reply | Flag: | Newsworthy 1

Ever heard of Nick Berg? How about Eugene Armstrong?

#27 | Posted by Shardanie

And you have proof that either one of those people were beheaded because a local bank submitted reports about their accounts?

#28 | Posted by Whatsleft at 2014-06-04 03:16 PM | Reply | Flag:

#28 He keeps that proof in the same place you keep your proof that Americans won't be targeted.

#29 | Posted by visitor_ at 2014-06-04 10:49 PM | Reply | Flag:

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