[Congressional Record Volume 155, Number 157 (Tuesday, October 27, 2009)]
[Senate]
[Page S10785]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself, Mr. Kerry, and Mrs. Shaheen):
  S. 1934. A bill to amend the Internal Revenue Code of 1986 to prevent 
the avoidance of tax on income from assets held abroad, and for other 
purposes; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, today, I am pleased to introduce the 
Foreign Account Tax Compliance Act of 2009.
  The bill gives the IRS powerful tools to find US taxpayers who are 
hiding their money in offshore accounts. It includes strong incentives 
for individuals to properly report income from assets held in offshore 
accounts. The days of sending your money offshore to avoid paying US 
taxes are over.
  This package is the result of a collaborative effort with the House 
and has the support of the White House and the Treasury Department. It 
is fully consistent with the policies in the preliminary draft of 
offshore compliance proposals that I released in March of this year to 
detect, deter, and discourage offshore tax evasion.
  The bill is a practical solution to a very challenging problem. For 
the first time, the tax law would authorize the IRS to receive 
information reports from foreign financial institutions disclosing the 
identities of their US account holders and the amounts being held in 
the accounts.
  Individuals with offshore accounts would be required to provide 
details of those accounts on their tax returns.
  Trust rules would be significantly strengthened to prevent the true 
beneficiaries from hiding behind a nominee owner.
  It will not be so easy to hide your money from Uncle Sam anymore.
  Following the recommendation of the Government Accountability Office, 
the IRS would have more time, up to 6 years, to find and examine 
unreported and misreported offshore transactions.
  Robust penalties would be in place for those who still try to skirt 
the rules.
  This bill would improve tax compliance without raising taxes on 
anyone. These are taxes that already are legally owed.
  Those who game the tax system by hiding their money in offshore 
accounts, like those in the recent UBS scandal, unfairly shift the tax 
burden to honest taxpayers who comply with their tax obligations. The 
IRS estimates that up to 52,000 individuals hid billions of dollars in 
offshore accounts through UBS.
  Offshore tax evasion is a significant part of the tax gap and it has 
gone on long enough.
  I believe this bill will be a turning point in putting an end to 
offshore tax evasion.
  I look forward to working with my Colleagues here in the Senate and 
in the House to enact this important piece of legislation this year.
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