Tax Evasion: U.S. Signs On With Five European Nations To Crack Down On Tax Evaders

WASHINGTON -- The United States and five European nations are pledging to crack down on global tax evaders.

The Treasury Department said Wednesday that the U.S. government has signed a joint agreement with France, Germany, Italy, Spain and the United Kingdom to intensify their efforts to fight international tax evasion.

Treasury also announced that the Internal Revenue Service is publishing proposed rules investors will have to follow in reporting on earnings from foreign bank accounts.

The regulations were required under a 2010 law Congress passed aimed at cracking down on taxpayers using foreign accounts to avoid paying U.S. taxes.

"When taxpayers overseas avoid paying what they owe, other Americans have to bear a disproportionate share of the tax burden," said Emily S. McMahon, Treasury's acting assistant secretary for tax policy.

The regulations establish tax reporting requirements for foreign banks that hold accounts for U.S. taxpayers.

The IRS will review the regulations and has the authority to modify them before they take effect.

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Comments

[thevmking]

06:15 AM on 02/09/2012

in the name of all Europeans, vote obama, do not want to suffer more than a crisis, like that of 2008, we do not want to be poor, because someone on wall street and its surroundings, enjoys playing with people's lives

[Jerry Frey]

12:25 AM on 02/09/2012

Seems to me that the European problem, Italy and Greece, has resulted from the past time of tax avoidance.

[thevmking]

06:09 AM on 02/09/2012

the Italian problem, called Berlusconi, who in the last 10 years has destroyed Italy, fortunately, who resigned.

[corvetter89]

05:11 PM on 02/08/2012

I think its great that the feds are going after all the millionaires rainy day money stashed in swiss, or cayman banks while the WORKING men and women are livin paycheck to paycheck, and payin most of the tax burden!.... time to pay a little more, wealthy people!

[YourMindsEye]

04:51 PM on 02/08/2012

If Obama is serious, he could start with members of his Cabinet, beginning with Geitner.

[buckarmstrong]

04:36 PM on 02/08/2012

Even tho I cannot say that I enjoy paying taxes, I do enjoy the freedoms that come from living in the good ole USA. Put very simply- Taxes are the price we pay for our freedom, quote unquote.

[Kache]

12:44 AM on 02/09/2012

Fanned & Faved.

Freedom is not free.

[ocgame9]

04:21 PM on 02/08/2012

IRS needs to be obliterated. People wouldn't hide money if we had better tax law and responsible government spending. I'm tired of the government stealing my money and never gaining any benefits from it.

[rep9347]

05:07 PM on 02/08/2012

Simple, don't elect any Republicans to Senate, House or Presidential offices...

[clark8642]

08:27 PM on 02/08/2012

The IRS neither writes tax law nor appropriates funds. Sorry if you get no benefits. Every night I thank God for the benefits of living in this country even if I do pay an effective tax rate twice that of Mitt Romney.

[ocgame9]

08:40 PM on 02/08/2012

Thank god that your money goes to invade and kill innocent people.

[PotomacOracle]

03:44 PM on 02/08/2012

H-P wrote, "When taxpayers overseas avoid paying what they owe, other Americans have to bear a disproportionate share of the tax burden," said Emily S. McMahon, Treasury's acting assistant secretary for tax policy.

Ok, AAS McMahon, tell us which burdens do those collections ameliorate? Tell us why a sovereign currency government needs tax revenue to spend.

Either you don't know or you can't. Alternatively you are cravenly subversive, and know the facts about sovereign currency but play the 1%ers game of bleeding U.S. citizens of their income.

You insist that gov must confiscate money from citizens equally, your view of shared burden. Well, AAS McMahon the federal government has been able to cover it's costs without being constrained by revenue since 1972. All previous administrations, back to Nixon just didn't want to tell us that little fact of reserve accounting. As the sole issuer of our currency the federal government's checks don't bounce. It can issue as many and as much as it wants as long as it manages inflationary pressures.

Please sit for a moment with www.moslereconomics.com and the"Seven Deadly Innocent Frauds of Economic Policy." Doing so will keep you from making grossly misinformed and misleading statements like the one quoted. above.

[clark8642]

04:29 PM on 02/08/2012

Certainly, based on our currency's status as a reserve currency, we can print our way out of part of our problem but unlimited printing is only feasible if we accept unlimited inflation. Maybe we should try a novel plan and raise sufficient taxes to pay for whatever spending we choose to approve.

[PotomacOracle]

08:45 PM on 02/08/2012

You don't understand. The government must first spend before it can tax. SOOOO, to raise sufficient taxes as you suggest we would need to spend. You also need to understand the concept of sole issuer of the currency. That means the gov is not revenue constrained to spend. It doesn't mean gov can spend all it wants. That's why I said in my post "as long as we manage inflationary pressures.

The salient point is that a sovereign currency nation can never go broke in its own currency. The other important policy issue is that for the nation to grow out of recession both gov and non-government spending must continue until unemployment is at an acceptable level. Any other course is counterproductive; budget cuts and tax increases (revenue raisers.) The government of the U.S. does not need revenue for spending.

[ivanhoemb]

02:58 PM on 02/08/2012

""When taxpayers overseas avoid paying what they owe, other Americans have to bear a disproportionate share of the tax burden," said Emily S. McMahon, Treasury's acting assistant secretary for tax policy."

Sure wish they had the same attitude about the more than 50% of Americans who pay no federal income tax. And its not those in the upper brackets.

[donk970]

03:10 PM on 02/08/2012

You should take an eansy weansy little bit of time and brain power and examine the composition of that 50% that you right wingers love to throw around. People between ages 0 to 16 and over 65 represent about 40% of the population and the other 10% is composed of the working poor who make so little money that they would have to give up food, shelter or medicine for grandma to pay taxes. Anyone with an ounce of common sense understands that only about 50% of any population is part of the working population that can pay taxes.

[seabasskj]

03:54 PM on 02/08/2012

They don't include those that earn no income. In the 1960's only 16% of those 'working' didn't pay any income tax. Now it is 46%.

[Yolinda Beach]

03:41 PM on 02/08/2012

Support the Taxed Enough Already Party!

[clark8642]

04:32 PM on 02/08/2012

Taxes enough for what? Certainly not enough to pay the bills Congress approves. The borrow and spend policies of the last 11 years amount to stealing from our grandchildren.

[360Dunk]

02:55 PM on 02/08/2012

Using Swiss banks to hide money is cheesy.

[Fred997]

02:54 PM on 02/08/2012

No one should get excited that the governments are really doing anything. These are the people at the top and they will never touch their money. They are just making noise to make you think they are doing something. They probably just having a get together and playing a bit of golf and thought " What line do we use to get them off our backs" I know we will just lie and say we are going to clamp down on tax evaders. That's the ticket.

[mcgowann]

07:01 PM on 02/08/2012

They should be cracking down on their own. Federal employees owe more than any group and Congressional aides rank even higher. Seems like Uncle Sam could just garnish their checks since they work for the government. If you become a Congressional aid, you are exempt from paying back college loans (or back taxes).

Check out the corruption of our current Congress.
http://www.washingtonpost.com/wp-srv/special/capitol-assets/public-projects-private-interests/

[nospin Ron]

02:47 PM on 02/08/2012

Not just overseas...the self employed people in the USA are mostly all tax crooks. I know...I verify peoples incomes for a living. I see many self employed living a 275K a year lifestyle and then turning in a tax return that reports 40 or 50 thousand a year adjusted income. Sometimes I see tax returns that would be poverty level and then the beautiful home, 3 new cars, private school for the kids etc. Maybe there are a lot of trust fund people out there. Tax enforcement.... It is almost a joke in the USA. It surprises me that Uncle Sam hardly ever even audits anymore. Almost no one ever gets caught. If the self employed paid their fair share I doubt there would be a budget short fall every year. What is even more surprising is that no one even mentions it. It has never even been a talking point when politicians talk about getting the budget in order.

[marine1942]

02:41 PM on 02/08/2012

So this will not have any effect on B. Hussian Obama's Sect of Tres. ??

[enstncls]

02:34 PM on 02/08/2012

How about simply making the millions here that pay no income tax ( Almost 50% of the population ) pay their fair share? How about stopping the practice of giving income tax refunds to people that paid no income tax?

[Birdman 49]

02:10 PM on 02/08/2012

Does this mean Romney can't be President if he is found to be hiding money to avoid paying taxes... I want to cry :-)

[vinyl1]

03:06 PM on 02/08/2012

He released his tax returns, which clearly show that he is reporting all his income from all his foreign accounts. That is perfectly legal and proper.

[Steve Rockett]

01:57 PM on 02/08/2012

I love this about the Obama administration. I suspect Romney is a perp and the administration knows it.