IRS Could Target Off-Shore Hedge-Fund Investors Next

Source: Dow Jones Newswires

By Ronald D. Orol

Off-shore hedge-fund investors could be the next target of the Internal Revenue Service and U.S. lawmakers after last week's landmark agreement between the U.S. and Swiss governments over secret Swiss bank accounts held by U.S. citizens.

The IRS's agreement with the Swiss government and UBS AG (UBS) will result in thousands of Americans who thought they had a secret Swiss bank account having their names and account details turned over to U.S. tax authorities. Recent statements from IRS officials and efforts under way on Capitol Hill indicate that it is only the beginning. After announcing the Swiss deal, IRS Commissioner Douglas Shulman said the agency will continue to take steps to bring in tax avoiders.

"We will work with other governments where possible to obtain the information we need," he said. "International tax evasion will continue to be a top priority."

One area where the agency may be increasing its focus is hedge funds, or at least, U.S. investors in off-shore hedge funds.

"Expect U.S. investors in off-shore hedge funds in places like the Cayman Islands, who failed to properly report earnings to the IRS, to be the next target of U.S. tax authorities," said Shahzad Malik, partner at TroyGould in Los Angeles, who focuses on the hedge fund and private equity industry. "There are indications that the U.S. may be taking steps to target off-shore hedge funds by asking them about their U.S. partners and investigating their earnings."

Read more: http://tinyurl.com/m4ebr5

is where do people hide their money after this? When offshore accounts are no longer the super secret places they once were where will the wealthy put their money?

.........gated communities guerrilla style and TAKE IT BACK.

From hrworld.com

Some call the practice of moving a company abroad to avoid taxes "corporate inversion," while others deem these businesses “expatriate corporations.” Whichever term you prefer, the fact is that several successful American companies have moved their headquarters overseas in recent years to avoid hefty U.S. taxes.

1.Halliburton: Houston-based Halliburton, which offers a broad array of oil-field technologies and services to upstream oil and gas customers worldwide, announced the opening of a corporate headquarters in the United Arab Emirates city of Dubai on March 12, 2007. The company, which was once led by U.S. Vice President Dick Cheney, said that its relocation was part of a strategy that it announced in mid-2006 to concentrate its efforts in the Middle East in order to attract business.

2. Accenture: Consulting company Accenture is the Bermuda-based arm of the former Big Five accounting firm Arthur Andersen LLP, which is known for its involvement in the Enron Corp. scandal. Accenture has done pretty well for itself, garnering $662 million in contracts between Oct. 1, 2001 and Sept. 30, 2002. The company has argued that its operations should not be called corporate inversion because while Arthur Andersen was based in the U.S., Accenture never was.

3. Foster Wheeler Ltd.: The engineering firm Foster Wheeler moved its corporate headquarters to Bermuda in 2001, when the company was headed toward bankruptcy. Nearly 70 percent of Foster Wheeler's business comes from its international operations, and the move to Bermuda enabled the company to avoid paying taxes on income that it earned outside of the U.S. Most of the company's main offices remain in New Jersey.

Seven more listed here: http://www.hrworld.com/features/10-overseas-companies-060408/

This is a good thing and the IRS doing their job going after these billionaire cheats while the rest of us shoulder the burden and do our part.

Good for the IRS.

Go git 'em!