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Tax compliance and the security of sensitive information, part 2

In the first part of this post, we began discussing the issue of the confidentiality of sensitive and personal information submitted by taxpayers to the IRS.

We noted that a report recently issued by a key government watchdog agency found serious concerns with the performance of the IRS in safeguarding taxpayer data.

In this part of the post, we look in more detail at the findings of the report by the Treasury Inspector General for Tax Administration (TIGTA).

Italian Designers Cleared of Tax Evasion Charges, Setback for Italian Prosecutors

Fashion designers Domenico Dolce and Stefano Gabbana are breathing sighs of relief after being cleared by Italy's highest court of tax evasion charges Friday, bringing an end to one of the country's highest profile tax cases in recent years.

Tax compliance and the security of sensitive information, part 1

The tax system depends to a very high degree on voluntary compliance.

To be sure, the IRS has various sticks at its disposal to deploy to enforce tax compliance. These tools do not only include tax audits; in more severe cases, the threat of criminal prosecution is also present.

Overall, however, the IRS is able to bring in much of the nation's revenue because taxpayers voluntary agree to do so.

But in doing so, taxpayers are entrusting sensitive and personal information to the IRS. In this two-part post, we will discuss the recent finding by the Treasury Inspector General for Tax Administration (TIGTA) that the IRS has failed to properly protect this information.

Deutsche Bank Joins U.S. DoJ's Self-Reporting Program

Deutsche Bank AG's Swiss unit has entered a U.S. Justice Department self-reporting program for banks that believe they may have aided Americans in the evasion of taxes.

Swiss Banks under Pressure to Release All American Accounts

The U.S. has seen uninterrupted success in its pursuit of undisclosed offshore accounts held by U.S. taxpayers. It began in 2008 with a key court victory against UBS, which then went on to pay the IRS $780 million. Swiss banking was turned upside down after UBS released thousands of Americans' account information to the IRS. Many other banks did the same, out of fear of prosecution. Recently, Credit Suisse plead guilty and paid a $2.6 billion fine.

IRS Brings Clarity to a Limited-Amnesty Program for Offshore Accounts

The Internal Revenue Service announced changes to one of its limited-amnesty programs for U.S. taxpayers with undeclared offshore accounts. The revisions are an attempt to "streamline procedure," which was announced in June and could offer relief to taxpayers who weren't intentionally hiding money abroad.

Companies Continue to Enjoy Inversion Benefits

While the federal government may be trying to prevent U.S. corporations from relocating overseas for tax purposes, it has failed to stop companies that have already completed such deals from doing their own follow-on acquisitions of U.S. companies.