I.R.S. Plan to Uncover Companies Tax Strategies Essay

I.R.S. Plan to Uncover Companies Tax Strategies - Essay Example t September the call for the regulations regarding overhauling the ruling and making those practices transparent started and those regulations became effective for the 2010 tax year effective December 15. The new law affects corporations (foreign and domestic) and insurance companies with assets in excess of $500 million, gradually reduced to $10 million by 2014. Kocieniewski seems to side with the corporations, but there are at least two valid reasons why the Government is justified in ending this money pit. (Kocieniewski) The one major argument the IRS uses to support the new â€Å"transparency† ruling is that its tax agents spend far too much time researching these claims as to their legitimacy and the agents’ time could be better spent going after tax cheats and proprietary information would not be shared. Of course the companies and their accounting agencies cried foul, counteracting that agents already â€Å"find an issue and try to extract some kind of payment for its nuisance value†. (Lear) The IRS’s position is a valid one. Let the average taxpayer try that one. If one owed X dollars in taxes for a household of his wife and him and yet paid taxes on four exemptions because his brother and sister-in-law stayed in the guest room for a few weeks, setting the rest in an account, the man would quickly be in jail! True corporations get tax advantages people don’t, on the premise of creating more jobs. However, if their deductions are legal they will find out soon enough, although most already know those questionable deductions would fail an audit. Their major problems are these huge reserves for possible taxes they used to pocket after the time limits. Another major problem is that during these austere times and Federal budget cuts, Congress is pressuring the tax people to collect more revenue and with more and more US jobs going overseas the bolstering the economy and creating jobs arguments of the major companies is flimsy at best. There is