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Owe The IRS? Get ready to have your Passport Suspended.

LOS ANGELES (CBS)— A bill authored by a Senator Barbara Boxer that could potentially allow the federal government to prevent any Americans who owe back taxes from traveling outside the U.S. is one step closer to becoming law.

Senate Bill 1813 was introduced back in November by Senator Barbara Boxer (D-Los Angeles) to “reauthorize Federal-aid highway and highway safety construction programs, and for other purposes” . 

In addition to authorizing appropriations for federal transportation and infrastructure programs, the “Moving Ahead for Progress in the 21st Century Act” or “MAP-21″ includes a provision that would allow for the “revocation or denial” of a passport for anyone with “certain unpaid taxes” or “tax delinquencies”.

Section 40304 of the legislation states that any individual who owes more than $50,000 to the Internal Revenue Service may be subject to “action with respect to denial, revocation, or limitation of a passport”.

There does not appear to be any specific language requiring a taxpayer to be charged with tax evasion or any other crime in order to have their passport revoked or limited — only that a notice of lien or levy has been filed by the IRS.

Boxer vowed last week to push House Republicans to pass the bipartisan transportation bill that would keep the Highway Trust Fund from going bankrupt.

“Thousands of businesses are at stake, and eventually we are talking about nearly three million jobs at stake,” she said in a statement. “There are many people on both sides of the aisle in the Senate who want to get our bill, MAP-21, passed into law, and I am going to do everything I can to keep the pressure on the Republican House to do just that.”

Read more at: Tax Times blog

UBS exec criticizes U.S. effort to get account data

A top UBS AG executive told a U.S. lawmakers that the Swiss bank regrets breaking U.S. tax laws, but criticized U.S. authorities' efforts to obtain information on thousands of bank accounts suspected of being used by American tax dodgers.

"We deeply regret our breaches of U.S. laws," UBS' Mark Branson told a Senate subcommittee hearing into a crackdown on offshore tax havens that has called into question Switzerland's cherished tradition of banking secrecy.

Branson called for a diplomatic resolution of U.S. government efforts to get information from UBS on as many as 52,000 undisclosed accounts sought in a civil lawsuit filed against the bank by the U.S. Internal Revenue Service.

"UBS believes the dispute should be resolved through diplomatic discussions" between the governments of Switzerland and the United States, Branson said, adding that the bank believes it has complied as much as possible with the lawsuit.

"The IRS is attempting to resolve this diplomatic dispute in a courtroom, which is neither productive, nor proper," he said.

Read more at: Tax Times blog

How to end tax fraud?

On March 28, the U.S. Justice Department sought to close a nationwide chain of income tax preparation shops it accuses of fraud. The action underscores the potential for abusive business practices that taxpayers face because Congress has failed to embrace technology that would eliminate most tax returns.

Read more at: Tax Times blog

Lawsuits test UBS advice on offshore bank accounts

* US clients allege Swiss bank failed to advise properly

* Lawsuits charge asset bankers have legal obligation to clients

The case of a wealthy U.S. businessman who pleaded guilty to evading taxes but then sued the Swiss bank where he hid his money is scheduled to go to trial on May 8, the first major test of civil legal challenges to Swiss banks that sold offshore private banking services to help Americans evade taxes.

The civil suit, filed against UBS AG in federal court in Santa Ana, California - and another filed against UBS in federal court in Chicago - will probe whether clients can legally rely on their private bankers' assertions there is no need to disclose the accounts on their tax returns or sign required disclosures.

Read more at: Tax Times blog

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