The IRS crackdown on foreign accounts has been generating a lot of discussion in the blogosphere. Some folks argue that it’s a waste of resources, others argue that it’s been a long time coming.
Today’s Fix the Tax Code Friday question is:
Is the targeting of offshore accounts a fair use of IRS resources? Or should the IRS focus more on collections and reporting inside the US?
As long as the US has a system that taxes worldwide income and our treaty network supports information exchanges with foreign governments to uncover potential tax evasion, I have no problem with it whatsoever. Like Deep Throat said, follow the money.
I agree — it’s likely that there’s quite a lot of untaxed $$$ stashed in foreign cubbyholes.
IRS needs to continue the pursuit of offshore accounts. I’ll bet the one’s screaming “waste of resource” are the ones with these accounts and have earned but unpaid taxes and after the grace period, heavy fines and even criminal charges. If I were in that situation I would be screaming too.