12,000 tax cheats come clean under IRS program

12,000 tax cheats come clean under IRS program
So far, $500 million has been paid in back taxes and penalties, with more to come

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.

http://www.msnbc.msn.com/id/44539060/ns ... l_finance/


Good... It's about time...

Considering this focuses on back taxes, penalties and interest, it does not mean they are tax cheaters. There are many who are unable to pay their full taxes when due and are on payment plans. Once again, a very slanted perception of what is actually being disclosed.

If you hide your income offshore in numbered Swiss bank accounts for the purpose of tax avoidance, it's called cheating. And if the US Government had not threatened them with prosecution, they would not have come forward. There is nothing slanted about the article at all... A tax-cheat is a tax-cheat.

So maybe the job creators will give up on America and go overseas to countries with fairer tax laws?

Like the way Americans are fleeing the high tax rust belt for the states with no income taxes like Florida & Texas.

A tax-cheat is a tax-cheat. If they don't like the tax structure here, then I suggest they not let the door hit them in the ass on the way out to another country....and good-riddance.

Taxes at lowest levels in decades, politics in Washington would have you believe different

The total tax burden for all taxes paid on income from federal, state and local is 23.6% of income in the first quarter of the year according to the Bureau of Economic Analysis data. Individual’s in the 1970′s paid around 27% of their income to taxes. Some the current number is reflected in the Social Security 2% tax reduction which began this year. Taxes per person is at an annual rate of $10,549 in the quarter this year the same as was seen in 1990, adjusted for inflation. { USA TODAY}

This data at least gives us the chance to respond to the GOP, when they pump out their chests saying “taxes keep going up”. They need to be told, “they’re not, your full of crap”. Then realize that yes, nobody wants to pay taxes and that is the card they are playing. “WHAT THE PEOPLE WANT TO HEAR” As this is good for campaigns and airtime on radio and television, it is still a lie. What we decide to take from the numbers is our personal option. Do I care that I am paying less than in 1958? No, I wasn’t alive so this has no meaning to me. The numbers from 1970? I paid none in 1970…I was four. I guess then when the GOP say’s I am paying more taxes they are right!!!! It’s all in the numbers and how you spin them. The politics from Washington, all parties concerned are guilty of telling the public what they want to hear. The more serious problem is, the majority of voters listen to the nonsense spewed and go off and spew it themselves, until it becomes a fact.

Sorry, but that dog won't hunt any more... The tax rates on personal AND business are the lowest they've ever been...

LadyJazzer wrote: If you hide your income offshore in numbered Swiss bank accounts for the purpose of tax avoidance, it's called cheating. And if the US Government had not threatened them with prosecution, they would not have come forward. There is nothing slanted about the article at all... A tax-cheat is a tax-cheat.

Do you actually have information that distinguishes between cheats and those who are merely trying to get their tax burden in order? You failed to address that question entirely.

If I earn income overseas, am I required to bring it into the US? No. Lots of assumptions here. Swiss bank accounts are all numbered regardless of whether you hide income or it's legitimate. I can have a Swiss bank account without being illegal.

Yes, the US tax system is so fair??? You may earn all your income in the US, but some of us earn nothing in the US and unlike the rest of the world we are taxed diligently on it. In fact I get to pay an extra 5% on top of my US taxes because there is no deduction for the foreign tax I pay. Let's just say I'm motivated to keep my money offshore too. I may not be a big company, but I do understand injustice when I see it. I've no problem paying taxes on money I bring into the US, but see no reason to pay on money that never comes into the US. So just because people have offshore accounts does not mean they are tax cheats as you insinuate with broad brush strokes. Just because people may not like the tax code you would love to boot them out. Ever hear of changing laws that are inequitable or just not working. And you wonder why companies move overseas! All it takes is a majority to make changes and you like do not represent the majority any longer.

You ever hear of:

TD F 90-22.1
REPORT OF FOREIGN BANK AND FINANCIAL ACCOUNTS

Penalties

A person who is required to file an FBAR and fails to properly file may be subject to a civil penalty not to exceed $10,000. If there is reasonable cause for the failure and the balance in the account is properly reported, no penalty will be imposed. A person who willfully fails to report an account or account identifying information may be subject to a civil monetary penalty equal to the greater of $100,000 or 50 percent of the balance in the account at the time of the violation. See 31 U.S.C. section 5321(a)(5). Willful violations may also be subject to criminal penalties under 31 U.S.C. section 5322(a), 31 U.S.C. section 5322(b), or 18 U.S.C. section 1001.

A tax-cheat is a tax-cheat. If they have a repayment plan in effect then at least they're not cheating now, even if they were before...And if it hadn't been for the IRS threatening the government over their secrecy laws, then it's unlikely that any of the tax-cheats would have come forward. Having trouble distinguishing between individuals and corporations?

I don't know of anyone who says the US tax-code is fair... The richest 1-2% get more breaks than the lower & middle classes will ever get. But it's the law. Either change it, or leave... And don't let the door hit ya...

Pretty much all of Congress has overseas accounts.
You get better returns.

Good for the IRS! Next they can go after the EITC, which is much more money and 1/3 fraud according to the GAO and IRS. Tax the Poor!

LJ,
Tax cheats, maybe. This is the same goverment that launched Fast & Furious and continues to entrap people and seizes assets before guilt is proved.

And the Economist is writing about this and now the Swiss goverment and banks are starting to push back against the IRS heavy handed tactics.

One way the IRS operates, they threaten you with high court costs and legal fees so often it is just cheaper to pay off the reduced fines than prove your innocence, extortion.

Suprised to see you a fan of freedom cheering on thugs in blazers.