New IRS Group to Address Offshore Accounts and Other International Tax Abuses by Wealthy Taxpayers

Offshore tax abuses and tax evasion have kept the IRS quite busy of late. The fast-approaching September 23 deadline for its “voluntary disclosure program,” and its agreement with UBS that will allow it to identify thousands of American taxpayers with offshore accounts, have added momentum to its efforts to combat offshore tax abuses by high net worth taxpayers.

Now, the IRS is creating a new group to “focus on examinations involving webs of entities and arrangements controlled by the high wealth taxpayer segment.” It will be part of the IRS Large and Midsize Business Division.

The IRS is also seeking additional resources from Congress to step up its enforcement efforts.

The new group will not deal solely with taxpayers who are UBS clients, but will address a broad variety of international tax issues.

This added expertise should be a positive development for the IRS Whistleblower Program, as it will allow the IRS to take on more and more complex investigations. The public will benefit from the greater results produced in cases of high-dollar tax evasion, as that money owed is finally paid.