Yearly Archives: 2013

It official that the IRS' Whistleblower Program is in High Gear!

Table of Activity By Year	Whistleblower -7623(b) SUBMISSIONS	Taxpayers Identified
2007	50	875
2008	377	1369
2009	472	2178
2010	422	5545
2011	314	734
2012	332	671

The IRS does not yet know how many of these cases will result in collected proceeds after examination or investigation, as the amounts alleged reflect only the whistleblower’s estimate of the potential recovery.  

Current Status of Open Whistleblower - 7623(b) Claims (as of 12/10/2012)
Current Status	Submissions	Taxpayers	Whistleblowers	Claim #s
Not recorded	3	23	3	23
Appeals 16	40	102	38	87
CI Review	4	4	3	4
Operating Division Field Examination	695	2846	542	2714
Operating Division Subject Matter Expert Review	116	327	83	318
Whistleblower Office - Award Evaluation 17	4	7	4	3
Whistleblower Office - Case Suspended 18	171	4913	123	4810
Whistleblower Office - Case Suspended Collection Action 19	4	17	4	17
Whistleblower Office - Case Suspended Refund Statute 20	3	6	3	5
Whistleblower Office - Case Suspended Related Claims Still In Process 21	44	605	32	550
Whistleblower Office - Case Suspended TEFRA Related 22	1	54	1	51
Whistleblower Office - Form 11369 Review 23	313	1069	252	987
Whistleblower Office - Initial Review	51	70	38	67
Total	1449	10043	1126	9636

 Complete the IRS only box on the Form W-7 using the document number codes for the types of documents reviewed (See attachment 1). You must also include your employee SEID number. Attach the original documents or certified copies from the issuing agency to the Form W-7 application.

 Mail the Form W-7, supporting documents, the original return(s) and Form 3870 via
overnight mail to the ITIN Operations Unit:

Internal Revenue Service
ITIN Operation
Mail Stop 6090 - AUSC
3651 South Interregional Hwy 35
Austin, TX 78741-0000

 International ROs can use the ITIN – RTS to verify that an ITIN has been assigned to the TP. The ITIN unit will process the W-7 Application, and send the original return with the Form 3870 to the ASFR/SFR unit in Brookhaven Campus for processing. An ITIN will be assigned to the taxpayer within 30 days.

 The status of the adjustment(s) can be checked using IDRS.

While the US is pushing to sign up as many countries as possible to an IGA, for Hong Kong & China signing an IGA appears less appealing. Speaking at a PwC Fatca roundtable in Hong Kong on February 6, Anthony Tong, US tax consulting leader for Greater China, said it is the US that would gain the most benefits from such an agreement – as it would be onerous for China to comply with no obvious benefit.

For Fatca to be effective against tax evasion, it needs to be implemented worldwide, said Tim Clough, risk and assurance partner at PwC. "Fatca needs to be established globally and with all financial institutions, otherwise there will be arbitrage," Clough said.

Although China was not on a list of 50 countries the US Treasury said it was in negotiations with for signing an IGA in November last year, market sources believe that the US is actively engaging with the Asian state to come to an agreement behind the scenes.

No country in Asia has yet signed up to an IGA. Japan is in the process of finalising its agreement while Australia, New Zealand, Malaysia, Singapore, India and Korea are believed to be actively engaged with the US Treasury over this issue.
There is little incentive for Chinese authorities to sign an intergovernmental agreement (IGA) to enable China’s financial institutions to comply with Fatca, as any benefits to it from an exchange of information with US tax authorities are likely to be minimal, say consultants.

"Under Chinese law there are a lot of bankruptcy protection rules, so that under the current Fatca rules it would be very difficult for Chinese financial institutions to try to comply. Even if the account holders were to waive those privacy protections, there are still laws that would make it illegal to report that information to the US government.

Speaking at the same briefing, PwC US tax partner Angelica Kwan said "In Hong Kong there is a lot of misinformation about IGAs and some institutions believe that if Hong Kong signed an IGA, it would save them from having to comply with Fatca. While it may make Fatca easier to comply with under an IGA, it is still essentially the same framework," she said.

Have Un-Reported Income from an Asian Bank?

Don't want to Go To Jail for a Foreign Bank Account?

Source:

Risk.net