3 ms·
There are a ton of loopholes involving foreign banks. It’s more complex than “just tax it.” How do you tax income in a foreign bank if the bank doesn’t respon
by Nbox9 6y ago
There are a ton of loopholes involving foreign banks. It’s more complex than “just tax it.” How do you tax income in a foreign bank if the bank doesn’t respond to IRS’s request for information?
- clairity 6y agoyou fine both bank and client for that behavior, and use the same might to pressure change that we've used against multiple small countries. it's not that hard policy-wise, but political will is certainly harder to muster.
- Nbox9 6y agoI disagree that if a bank in _generic foreign country_ doesn’t work with _us agency_ we should start politically pressuring the _generic foreign country_. Sure, while we do this we will start catching loop holing billionaires, but we will also begin effectively putting the IRS in a position where it knows (or can learn about) about literally every transaction in the entire global banking system. This seems like an undesirable outcome.
- kwhitefoot 6y agoYou tell the taxpayer that you will just stipulate a very large sum until they instruct their bank to hand over the details. If they are willing to pay the stipulated amount instead of handing over the data you raise it because it was obviously too low.