The International Revenue Authority (IRS)
International Revenue Authority (IRS) provides services aligned to revenue collections across the United States Federal government. The IRS is therefore a revenue agency tasked in collecting taxes as well as interpreting and enforcing the internal revenue codes. IRS has undergone tremendous changes to ensure citizens oblige, meet, and fulfill their tax duties without evasions or avoidances. These changes are aligned towards the governments’ effort in increasing the amount of taxes collected annually. Taxes play vital roles aimed at developing the country’s social, economic, financial, and environmental aspects. Thus, IRS has expanded its mandates to global boundaries (Scott, 2013).
Beyond Domestic Borders
Human activities across global boundaries have been affecting the country’s economy. They have been influencing the nation’s trade policies attributing towards macro and micro economic effects on the economy. For example, trade barriers and economic integrations across international borders have directly and indirectly affected on the country’s economy. Canadians residing less than one hundred miles from the United States border develop the Canadian economy. However, they also engage in cross border economic activities affecting employment rates in United States as well as pricing strategies among United States companies located near the border. This has also affected the country’s currency value. It therefore reflects that, global boundaries are playing phenomenon roles in determining the amount of taxes IRS collects on behalf of United States department of treasury (Judith, 2008).
IRS has therefore adopted a new and practical solution legally defined and formulated to ensure tax evasions and risks are minimized and eliminated. Tax laws affirm large amounts of taxes are neither reported nor collected across global boundaries. It is illegal to either avoid or evade paying tax in United States. However, several citizens accused of evading and avoiding paying taxes cite they are legally protected as they reside and undertake economic activities beyond domestic boundaries. The IRS guided by tax laws has recently been collecting taxes beyond domestic boundaries. It determines unacceptable from acceptable cases legally protected from payment of taxes. Thus, IRS applies legit power to notify international boundaries before undertaking its mandates (Judith, 2008).
More so, cyberspace has limited location of boundaries. It is challenging to determine how much power a local government has in controlling online economic activities linked to international borders especially United States. As a sovereign nation, United States asserts IRS ought to enforce tax laws to citizens residing across international bounders with economic links in the country. This is because they influence economic effects such as trade barriers when moving cargoes across boundaries (David, 1996).
who fail to sign a tax return acknowledging and disclosing their foreign
accounts are guilty of committing perjury. They should neither hide the assets
nor the offshore accounts as this constitutes to tax fraud based on the current
legal tax laws. Currently, the IRS is targeting offshore accounts in
Switzerland, Israel, and the Caribbean. The international governments are
collaborating with United States government in providing account holders’ names
with an American citizenship. For example, Edgar Paltzer was found guilty of
evading and assisting American citizens from fulfilling their tax payment
duties. He was accused of evading his tax duties by opening accounts in Europe holding
valuables and assets (Scott, 2013). It
is therefore important for IRS to investigate beyond domestic borders to
prevent tax deficiencies in the country. IRS should therefore expand its
mandates to international boundaries in order for citizens to comply and report
their tax returns in accordance to the United States tax laws. They should
acknowledge and honor their tax responsibilities and liabilities (Judith,
David, R. J. (1996). Law and Borders: The Rise of Law in Cyberspace, Peer-Reviewed Journal of the Internet. 24 Jun 2014. Retrieved from http://firstmonday.org/article/view/468/389
Judith, F. (2008). Beyond Boundaries: Developing Approaches to Tax Avoidance and Tax Risk Management, Oxford University Centre for Business Taxation. 24 Jun 2014. Retrieved from http://www.law.ox.ac.uk/themes/tax/documents/BeyondBoundaries.pdf
Scott, H. N. (2013). What to do when a Client has an Undisclosed Foreign Account, Journal of Accountancy. 24 Jun 2014. Retrieved from http://www.journalofaccountancy.com/Issues/2013/Dec/20138321.htm