On Friday, Reuters reported that the IRS is hiring people to be part of a new unit it is setting up for the purpose of 'catching rich tax cheats hiding their wealth in complex business entities.' Admittedly, cheating on taxes is something that should be stopped, but to focus specifically on one group of people seems a bit odd.
The unit will focus on trusts, real estate investments, privately held companies and other business entities controlled by rich individuals. Part of the budget bill passed in Congress in recent days included adding $387 millions dollars to the IRS budget for the fiscal year that started October 1. Part of this money will go to fund this new unit aimed at wealthy taxpayers.
According to the article:
"The IRS is also opening new criminal offices in Beijing, Panama City and Sydney to focus on funds flowing out of Europe and into Asia, in part because of a heightened focus on international enforcement in Europe."
It would be cheaper to change the tax code so that people would not have the incentive to cheat!
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