IRS to Hire 800 New Agents as Obama Declares War on Multi-National Corporations and Offshore Tax Shelters
President Obama announced an overhaul of the tax code to “detect and pursue” U.S tax evaders and go after their offshore tax shelters.
The President’s two-part plan calls for nearly 800 new IRS agents to enforce the U.S. tax code - and help wage war against multi-national corps and their offshore tax havens.
Under the current tax code, companies with operations overseas pay U.S. taxes only if they bring the profits back to the United States. If they keep the profits offshore, they can defer paying taxes indefinitely.
Obama’s plan, which would take effect in 2011, would crack down on these loopholes and companies would no longer be able to write off domestic expenses for generating profits abroad. The goal is to reduce the incentive for U.S. companies to base all or part of their operations in other countries.
The president said that his plan would generate $210 billion in new taxes over 10 years and “make it easier” for companies to create jobs at home. Over a decade, $210 billion would make a modest dent in the forcasted $1.8 trillion federal deficit.
While the administration is not seeking to repeal all overseas tax benefits, Congress is expected to resist significant portions of Obama’s plan.
Meanwhile, the government will be looking to collect funds as the federal deficit continues to grow. Taxpayers can expect more aggressive collection tactics by the IRS to close in on the $400 billion tax gap that estimated each year,.
Individuals and businesses - both big and small - will see a noticeable increase in IRS enforcement. In the current economic downturn, we are seeing many struggling businesses falling behind on payroll tax deposits. And business owners need expert tax representation to protect the future of their companies and avoid IRS levies on their wages and bank accounts.
** If you are in trouble with the IRS, our specialized staff of tax attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
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