Plan to Stem Tax Evasion Likely to Increase Compliance Departments’ Burden

By Matt Squire

The Obama administration's plans to curb foreign institutions from aiding U.S. tax evaders is short on details, but could block U.S. citizens and residents' access to foreign banks and put a new compliance burden on U.S. institutions, say some tax professionals. On May 4, President Barack Obama announced plans to reform the U.S. tax code and give the Internal Revenue Service more power to pursue U.S. citizens hiding assets in foreign jurisdictions. The administration's plan also removes some tax advantages allowed for overseas investments, requires further disclosures from foreign banks and adds 800 new IRS employees devoted to international enforcement....