Daily Tax Update - February 19, 2014: Rep. Camp to Release Tax Reform Plan Next Week

REP. CAMP TO RELEASE TAX REFORM PLAN NEXT WEEK:   House Ways and Means Committee Chairman Dave Camp is expected to release his comprehensive tax reform plan on February 26.  Camp is also expected to release the plan’s scoring from the Joint Committee on Taxation.

In a letter to Republicans on the Committee, Camp said, “Many in Washington are scared by the prospects of tax reform; they don’t want to look special interests in the eye and say the game is up.  Well, it is. We simply cannot afford the business-as-usual mentality that keeps Washington comfortable, but complacent.”

SENATE SUBCOMMITTEE ON INVESTIGATIONS TO HOLD HEARING ON OFFSHORE TAX EVASION: On February 26, the Senate Permanent Subcommittee on Investigations will hold a hearing, "Offshore Tax Evasion: The Effort to Collect Unpaid Taxes on Billions in Hidden Offshore Accounts.”  According to the Committee, “The hearing will continue the Subcommittee’s examination of tax haven bank facilitation of U.S. tax evasion, focusing on the status of efforts to hold Swiss banks and their U.S. clients accountable for unpaid taxes on billions of dollars in hidden assets.”

The GAO released a report today titled, “IRS's Offshore Voluntary Disclosure Program: 2009 Participation by State and Location of Foreign Bank Accounts.” The GAO report stated, “We reported 12,889 Report of Foreign Bank and Financial Account (FBARs) forms that were filed for 2008 by participants in the 2009 OVDP. Consistent with IRS's enforcement efforts and the design of the 2009 OVDP, we found that the population of participants was more likely to report offshore accounts in Switzerland than in other locations.”

The report can be accessed via:  http://www.gao.gov/products/GAO-14-265R.

IRS RELEASES “DIRTY DOZEN” TAX SCAMS: The IRS issued its annual “Dirty Dozen” list of tax scams for 2014. The following are the Dirty Dozen tax scams for 2014: identity theft; pervasive telephone scams; phishing; false promises of “free money” from inflated refunds; return preparer fraud; hiding income offshore; impersonation of charitable organizations; false income, expenses or exemptions; frivolous arguments; falsely claiming zero wages or using false Form 1099; abusive tax structures, and misuse of trusts.

Additional information can be accessed via: http://www.irs.gov/News-&-Events

Revenue Procedure 2014-19, corrects Revenue Procedure 2014-4, which contains errors regarding expedited handling of EO Determination Letter requests in sections 2.06 and 9.03(3). This revenue procedure corrects those errors to clarify that EO Determination Letters are still eligible for expedited handling under section 9 of Revenue Procedure 2014-4.