The Internal Revenue Service and Department of Justice are on a never-ending crusade to end tax evasion. As part of their ongoing efforts, they recently announced proposals to make the banking system more "transparent."
President Obama said the recent release of the Panama Papers -- leaked banking documents that revealed tax avoidance efforts by wealthy individuals worldwide -- showed "how big a problem corruption and tax evasion have become."
The Treasury Department says its pair of new measures will require companies to disclose ownership to banks and the IRS.
The first proposed rule changes the ways bank maintain records of which individuals own companies making use of banking services. The second is a proposal to close a loophole allowing some foreign companies to escape requirements to report to the IRS.
Treasury Secretary Jacob Lew says Congress should give law enforcement agencies more powers “to combat bad actors who seek to hide their financial dealings and evade their tax responsibilities."
The Treasury Department wants companies to disclose details about ownership to the IRS, and to compel banks to collect details about foreign bank holdings -- the same kinds of information the IRS now wrings out of foreign banks about American account holders.
While some consumer activists said the new proposals are watered down efforts with their own leaking loopholes, a banking lobby said it was "pleased" that its concerns were reflected in the outlines.
A tax attorney experienced in criminal tax matters can help you understand the parameters of the law and how you can effectively address legal issues of concern.
