Exclusive: IRS hires "hundreds" for new wealth unit

**meme** · 12-12-2009, 07:46 AM

Hugo Obama's new brigade of jackboots from the administration that is filled with tax evaders..how bout that...enjoy.

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WASHINGTON (Reuters) - A new Internal Revenue Service unit set up to catch rich tax cheats hiding their wealth in complex business entities is rapidly taking shape with the hiring of hundreds of employees.

The IRS high wealth unit, part of a broader effort to combat international tax evasion, is focusing on "the entire web of business entities controlled by a high wealth individual," IRS Commissioner Doug Shulman told a tax conference this week.

Another IRS official told Reuters "hundreds" of people have already been hired to staff the new unit, including some from within the agency.

"We have drawn top talent within the IRS that have expertise involving wealthy individuals as well as examination of their related entities," said Mae Lew, an IRS special counsel.

The high-wealth unit is focusing on trusts, real estate investments, privately held companies and other business entities controlled by rich individuals.

While use of sophisticated legal structures can be legal, in other instances they "mask aggressive tax strategies," Shulman said.

Tax authorities in Japan, Germany and the UK have also created similar units.

The U.S. House of Representatives on Thursday approved a $387 million boost for the IRS for the fiscal year that started October 1, in part to fund the high-wealth unit. The Senate is expected to vote on the measure on Sunday.

NEW GLOBAL FOCUS, JOINT CORPORATE AUDITS

The IRS is also opening new criminal offices in Beijing, Panama City and Sydney to focus on funds flowing out of Europe and into Asia, in part because of a heightened focus on international enforcement in Europe.

The goal is to get those up and running during this fiscal year, which ends September 30, according to Barry Shott, IRS deputy commissioner for international issues for large and midsized business.

At the center of the agency's offshore effort is its legal cases against Swiss banking giant UBS AG. UBS agreed to turn over nearly 5,000 names of individual American clients and paid $780 million to settle a criminal case for aiding tax evasion.

The IRS has also begun initial steps to join forces with other governments to scrutinize corporate tax filings to prevent "tax arbitrage" by companies seeking the best regime.

President Barack Obama has proposed tightening tax rules for U.S. multinationals, including one in which companies delay paying taxes on income earned offshore, a legal practice known as deferral that officials say is abused.

Some tax practitioners expressed worry about such coordination.

"With any new thing, you never want to be the guinea pig," Mary Lou Fahey, general counsel for the Tax Executive Institute, comprised of business executives, said.

Shott said a likely scenario will likely be two countries getting together and decide to examine a narrow issue. In the beginning it will operate like a pilot program where the corporation examined would agree to take part.

"With rare exception ... the taxpayer will absolutely know they are subject to a simultaneous examination," Shott said.

Still, he said there could be cases where the audit needs to be kept quiet, such as when a criminal probe is ongoing.

Initial partners would likely include Canada, the UK and Australia, Shott said.
http://www.reuters.com/article/idUSTRE5BA45320091211

**Mott the Hoople** · 12-12-2009, 08:12 AM

Bout damn time they started doing something about tax cheats. Catch a few of these criminals and put them in prison for a few years and I bet some other cheats and criminals will start living up to their duties as a citizen.

**meme** · 12-12-2009, 08:15 AM

Originally Posted by Mott the Hoople

Bout damn time they started doing something about tax cheats. Catch a few of these criminals and put them in prison for a few years and I bet some other cheats and criminals will start living up to their duties as a citizen.

well they can start with half the people in this administration..then I would cheer them on...but of course we won't be seeing that anytime soon now will we..

**evince** · 12-12-2009, 08:21 AM

Great news

**meme** · 12-12-2009, 08:25 AM

Originally Posted by evince

Great news

yeah just wonderful news, better hope they don't come after you and bankrupt your ass and take all you assets if you can't prove any errors in filing you taxes..

but hey, the hell with all the other people they go after..hows that Democratic government now..

**evince** · 12-12-2009, 08:28 AM

You are such an idiot

**meme** · 12-12-2009, 08:40 AM

Originally Posted by evince

You are such an idiot

ah yes the liberal way when they have nothing else to say.

**apple0154** · 12-12-2009, 08:50 AM

So what is wrong with going after tax cheats?

What's your point, Meme?

Originally Posted by meme

Hugo Obama's new brigade of jackboots from the administration that is filled with tax evaders..how bout that...enjoy.

-----------------------------------------------------------------------

WASHINGTON (Reuters) - A new Internal Revenue Service unit set up to catch rich tax cheats hiding their wealth in complex business entities is rapidly taking shape with the hiring of hundreds of employees.

The IRS high wealth unit, part of a broader effort to combat international tax evasion, is focusing on "the entire web of business entities controlled by a high wealth individual," IRS Commissioner Doug Shulman told a tax conference this week.

Another IRS official told Reuters "hundreds" of people have already been hired to staff the new unit, including some from within the agency.

"We have drawn top talent within the IRS that have expertise involving wealthy individuals as well as examination of their related entities," said Mae Lew, an IRS special counsel.

The high-wealth unit is focusing on trusts, real estate investments, privately held companies and other business entities controlled by rich individuals.

While use of sophisticated legal structures can be legal, in other instances they "mask aggressive tax strategies," Shulman said.

Tax authorities in Japan, Germany and the UK have also created similar units.

The U.S. House of Representatives on Thursday approved a $387 million boost for the IRS for the fiscal year that started October 1, in part to fund the high-wealth unit. The Senate is expected to vote on the measure on Sunday.

NEW GLOBAL FOCUS, JOINT CORPORATE AUDITS

The IRS is also opening new criminal offices in Beijing, Panama City and Sydney to focus on funds flowing out of Europe and into Asia, in part because of a heightened focus on international enforcement in Europe.

The goal is to get those up and running during this fiscal year, which ends September 30, according to Barry Shott, IRS deputy commissioner for international issues for large and midsized business.

At the center of the agency's offshore effort is its legal cases against Swiss banking giant UBS AG. UBS agreed to turn over nearly 5,000 names of individual American clients and paid $780 million to settle a criminal case for aiding tax evasion.

The IRS has also begun initial steps to join forces with other governments to scrutinize corporate tax filings to prevent "tax arbitrage" by companies seeking the best regime.

President Barack Obama has proposed tightening tax rules for U.S. multinationals, including one in which companies delay paying taxes on income earned offshore, a legal practice known as deferral that officials say is abused.

Some tax practitioners expressed worry about such coordination.

"With any new thing, you never want to be the guinea pig," Mary Lou Fahey, general counsel for the Tax Executive Institute, comprised of business executives, said.

Shott said a likely scenario will likely be two countries getting together and decide to examine a narrow issue. In the beginning it will operate like a pilot program where the corporation examined would agree to take part.

"With rare exception ... the taxpayer will absolutely know they are subject to a simultaneous examination," Shott said.

Still, he said there could be cases where the audit needs to be kept quiet, such as when a criminal probe is ongoing.

Initial partners would likely include Canada, the UK and Australia, Shott said.
http://www.reuters.com/article/idUSTRE5BA45320091211

**evince** · 12-12-2009, 08:52 AM

Hate democrats is her only point

**meme** · 12-12-2009, 08:54 AM

Originally Posted by apple0154

So what is wrong with going after tax cheats?

What's your point, Meme?

man oh man, if you don't GET the point, never mind

**Blackwater Lunchbreak** · 12-12-2009, 09:05 AM

President Barack Obama has proposed tightening tax rules for U.S. multinationals, including one in which companies delay paying taxes on income earned offshore, a legal practice known as deferral that officials say is abused.

This is a good idea. Why should multinationals be incentivized to move operations overseas?

No wonder our job market is in the shitter with tax policy like this.

Who put this idiotic policy in place to begin with?

**apple0154** · 12-12-2009, 09:10 AM

Originally Posted by meme

man oh man, if you don't GET the point, never mind

It is being co-ordinated with other countries. That means other countries are also going after tax cheats. That means other countries are aware there are tax cheats.

It sounds like you want to protect tax cheats.

**SmarterthanYou** · 12-12-2009, 09:11 AM

Originally Posted by meme

well they can start with half the people in this administration..then I would cheer them on...but of course we won't be seeing that anytime soon now will we..

i was wondering that myself. It's ridiculously ironic that a cabinet full of people who didn't pay taxes for various reasons are now tasking the IRS to go after people who don't pay their taxes for various reasons.

talk about the 'rules for thee, none for me' crowd. Elitism at it's finest.

I'm sure the libs will give them quite a pass on all that though.

**apple0154** · 12-12-2009, 09:20 AM

Originally Posted by AssHatZombie

This is a good idea. Why should multinationals be incentivized to move operations overseas?

No wonder our job market is in the shitter with tax policy like this.

Who put this idiotic policy in place to begin with?

We agree, again, AssHat. We need a co-ordinated effort to go after these tax cheat terrorists. And terrorists they are. They "terrorise" countries by threatening to leave and go elsewhere. There has to be a policy to prevent them from having a safe haven anywhere.

People complain about companies/countries which indulge in questionable labor practices but they have no problem when a company exploits tax loopholes thereby robbing the citizens of social services.

Change. Long overdue.

**evince** · 12-12-2009, 09:23 AM

They benifit from the economy our country provides but bail on us when it comes time to share their load in supporting it.

Then the right patts them on the back and tries to get them tax cuts