IRS Wealth Unit Eyes Rich Americans and Their Businesses

October 27, 2009

(ChattahBox)— The Internal Revenue Service is in the early stages of building up a new wealth unit that will target wealthy individuals and their business entities, to combat international tax evasion. As part of a comprehensive effort to ferret out illegal tax shelters, the IRS plans to open new offices in Beijing, Panama City and Sydney, to keep track of funds flowing across Europe and into Asia.

IRS Commissioner Doug Shulman spoke of the new wealth unit during a meeting with the American Institute of Certified Public Accountants.

“We will take a unified look at the entire web of business entities controlled by a high-wealth individual. At least initially, we will be looking at individuals with tens of millions of dollars of assets or income,” said Shulman.

The wealth unit will examine trusts, real estate investments, privately held companies and other business entities of wealthy taxpayers, to search for signs of tax evasion.

Shulman noted many tax shelter strategies are perfectly legal, but at other times they often “mask aggressive tax strategies.”

The new wealth unit received a boost from the recent settlement with Swiss banking giant UBS AG, which resulted in the release of 5,000 names of American clients holding Swiss bank accounts.

President Obama plans to raise about $200 billion in revenue, by tightening international tax rules and aggressively pursuing tax cheats.

Source


Comments

4 Responses to “IRS Wealth Unit Eyes Rich Americans and Their Businesses”

  1. IRS Wealth Unit Eyes Rich Americans and Their Businesses … ZB BU online on October 27th, 2009 8:36 pm

    […] post: IRS Wealth Unit Eyes Rich Americans and Their Businesses … By admin | category: business unit | tags: internal, internal-revenue, lynch, […]

  2. IRS Estate Tax - The Home Front - US News and World Report « IRS Estate Tax on October 27th, 2009 9:34 pm

    […] IRS Wealth Unit Eyes Rich Americans and Their Businesses – Chattahbox.com(ChattahBox)— The Internal Revenue Service is in the early stages of building up a new wealth unit that will target wealthy individuals and their business entities, to combat international tax evasion. As part of a comprehensive effort to ferret […]

  3. Frank Fitton on October 28th, 2009 2:08 pm

    The IRS has now noticed that there is probably a whole lot of money being left out on the table out there that they could claim. It always seemed odd to me that the people that had the most ability to pay the IRS, were at the same time almost treated the most leniently.

    I do feel that the impression is there that the super rich fill their tax returns with write offs and tax breaks and don’t really pay what they should. Now granted, I don’t know what the exact numbers are, but I do know what public perception is. Public perception certainly is that the super wealthy don’t pay the same percentage of their income back in taxes. It might have to do with the fact that they can hire the best accountants, but that certainly doesn’t make it right.

    I have to applaud the IRS for this new enforcement unit, and hope that its actions go in line with the lofty goals that it has set. There really is no way that our government should be forced to cut spending on worthwhile efforts and programs, while these people are able to write off money that could be used to support the programs.

    Check out my blog on the IRS’s new unit and its approach at… http://www.thedebtgazette.com/2009/10/irs-enforcement-group-wealthy/

  4. JamesG on January 26th, 2011 11:55 am

    The 1913 the Income Tax laws were pushed through. The Income Tax laws were never ratified by the required number of states and are therefore unconstitutional.

    U. S. District Court Judge James C. Fox 2003 – If you examined [the 16th amendment] carefully you would find that sufficient number of States never ratified that amendment“

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