The incredibly rich aren’t like you and me, they don’t need to worry about breaking the law. . . because the I.R.S. is now handing out amnesty like candy. From the New York Times:
The Internal Revenue Service said on Monday that it would soon announce a new amnesty program aimed at encouraging wealthy Americans with hidden offshore bank accounts to come forward, declare their money and pay taxes owed.
An I.R.S. spokesman, Frank Keith, said that the program would be formally announced “very shortly” and would not offer terms as generous as those put forth in a similar initiative last fall.
[...]
The previous so-called voluntary disclosure program, which ended last October and was carried out amid a crackdown on Swiss private banks and their clients who hid money from the government, was used by more than 15,000 Americans with hidden accounts, some holding hundreds of millions of dollars. An additional 3,000 with accounts at various offshore banks came forward after the Oct. 15 deadline.
That would be two amnesties in less than a year for wealthy Americans who broke the law by using overseas bank accounts.
The logic of a special one-time amnesty is dubious. Offering a second one in less than a year creates a clear moral hazard, sending the signal: “don’t worry about breaking the law, there will likely be another amnesty real soon.”




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This is so blatant, I just had to laugh.
It does seem as if someone just might be a tad worried that there are some prominent names on the next wikileaks drop
disgusting. But no amnesty for the millions of undocumented folks…
The hypocrisy is glaring.
Particularly all those Pols…! ;-)
It reminds me of the Dave Chapelle show where Tron(the crack dealer was allowed to turn himself in.
[Tron having dinner with police after turning self in]
Police Commisioner: Now, you are a cocaine dealer, but you’ve done a lot of good for the community.
Tron: I know. When it’s Thanksgiving, I be passin’ around turkeys like Nino Brown, baby!
Police Commisioner: Of course!
Tron: [dignified] But may I ask you gentleman, when I’m acquitted, can I continue to channel rocks throughout my community?
Police Commisioner: [holding up tape recorder, non-sincerely] Ab-sol-ute-ly not!
Police Commisioner: [winks]
Tron: [sarcastically] Oh, yeah, sellin’ rocks would be bad.
I don’t know– rich people create jobs. I wouldn’t want to take a chance on prosecuting them and stalling the recovery.
Not a nation of men, but a nation of laws. Laws violated with impunity, that is.
Surely Daryl Issa will investigate, right?
It’s seems likely that some pols and their relatives and good buddies played the off-shore-hide-the-money-from-the-IRS scam… don’t it?
They hire tax liars.. I mean lawyers to work the system and that’s not available to wage earners either.
I agree about the moral hazard, but what alternatives are left when legal action against the tax cheats has been pre-emptively taken off the table by our illustrious government officials (ObamaCo)? The only people who go to jail are the whistle-blowers. At least with the amnesty they might get a couple of bucks in revenue. Without it, zilch.
Yep. Somebody is getting their silk drawers in a wad. Oh, well. Just more of the same. Had it been one of us, we would be in prison already.
“They hire tax liars.. I mean lawyers to work the system and that’s not available to wage earners either.”
Yes, and some do like our Treasury Secretary and use Turbo-Taxfree programs! ;-)
http://www.comedycentral.com/videos/index.jhtml?title=tron-carter-s-law—order&videoId=219426
I’m sure they can participate in this amnesty. If they left a bank account in their country of origin and didn’t declare it to the Treasury Department, now is their chance.
Well, Thomas just refiled his financial disclosure forms for the past 13 years for omitting his wife’s income from wingnut sources. And…. crickets.
exactly what I was thinking. Where is the moment gang leaders get to have an amnesty to declare their crimes and get to keep all their criminal money.
I’m not disagreeing with you vis-a-vis morality, but the explanation is easy. When a tax-evader takes advantage of the amnesty, the Federal Government gets money. These programs are huge money-makers for the govt. The same can’t be said for amnesty programs for persons who illegally immigrate to the United States.
I called for his impeachment! :-( I know, it don’t mean crap.
Well, minus the part about keeping their money right, since the tax evaders are paying their taxes.
A better analogy would be a gang member taking advantage of amnesty who has to give the government all the money he made by dealing drugs, but avoids any civil penalties.
How much did the IRS get on the prior amnesty?
Could make you cry,couldn’t it. Especially when I think about the harassment we received from the IRS for a mistake on our meager return, on which we paid interest and penalty.
This is NOT a good country, and things ain’t looking up.
A better analogy would be a drug dealer taking advantage of amnesty who has to give the government the money he would have paid in income taxes on the money he made by dealing drugs, but avoids any civil penalties.
And if the cheats can count on 2X/year amnesties (the moral hazard part) won’t responses diminish to vanishing, unless there was some other reason to pay up, like buying something expensive in U.S. and needing to repatriate funds?
True – no need to change from hiding income offshore when you know that if caught there will be an amnesty within 6 months of the first letter of inquiry.
I guess it’s fair…because I don’t consider these monsters human.
If I was on a jury I’d give them life in prison for a speeding ticket.
If you’re caught you don’t get the advantage of the amnesty. You have to step up forward prior to getting caught. The difference is pretty steep: the VCI penalties charge back tax + interest, 20% of the income, and 20% of the highest balance. If you’re caught, the penalties could be all that plus criminal charges and 50% of the balance of the account.
David Dayen is upstairs!
The Ambac Suit: Bear Stearns Execs Double-Dipped, Committed Criminal Fraud on Investors
I’m sorry – quiet compliance via an amended return filing is indeed not eligible for amnesty treatment unless you actually file for amnesty, and under examination for anything kills your ability to get in the program. You are correct and I was wrong.
I just recall many years of IRS agents under Reagan being generous as to fines if you could convince them it was inadvertent and steps had been taken to prevent a re-occurrence (a potential $30 million dollar fine reduced to $200 being one I especially treasure – and yes I voluntarily disclosed when I found the error and the history of making the error from day one of the companies existence in the US – there was no US tax due – but the fine for error was per occurrence – and there were over a hundred thousand information return occurrences).
In any case the above means you must bluff your way past the current exam problem – or pay – and get it closed – and then disclose if you want amnesty. Must not be “under examination”. Good catch on your part – and bad post on my part.
Seems the standard rich ploy of many companies that can drain assets in a second from one another is the best defense – and of course daily draining of assets to companies in safe countries.
The problem is far greater than the 2nd amnesty creates a moral hazard. The 2nd amnesty exposes Obama for exactly what he is – an amoral, groveling wannabe who desperately seeks the approval of those who have a greater disdain of him than he does of us.
Ah, I used to practice in this area. On both sides of the fence.
Being rich and a tax cheat is a two-edged sword. By being rich and famous, you’re much more likely to be prosecuted (on a case-by-case basis) for fraud than the average cheating small business man. Especially if you have recognizable ‘name value.’
OTOH, if you’re the average small businessman, you’re much more likely to get away with cheating. But, even if you don’t cheat and only have sloppy books, you’ll can’t really afford the specialist CPAs and attorneys you’ll need to beat the government and it’s, for all practical purposes, limitless resources and mendacity.
No, actually it’s quite the opposite. Most fraud referrals are never even investigated by CID and the DoJ. Then they only prosecute a couple of thousand cases, based primarily on “name value,” a year.
Yup, those rich folks get VERY fast action from their servants.