A Deal That Could Save Many An Adult Webmaster?

Sword · 01-15-2003

IRS offering deal to offshore tax cheats
Tuesday, January 14, 2003

WASHINGTON (CNN) -- The Internal Revenue Service, hoping to recapture tax money lost through the use of off-shore financial dodges, is offering violators a chance to escape prosecution if they come clean -- and give the IRS information on people who promote the illegal practices.

To qualify under the program, taxpayers who have used offshore payment cards or other offshore financial arrangements to hide taxable income must first report the income; second, pay any back taxes, interest, and some "accuracy or delinquency" penalties; and, finally, give the IRS complete information about promoters of the suspect arrangements.

Taxpayers who formally request to participate in the program -- named the Offshore Voluntary Compliance Initiative -- by April 15 will be able to avoid criminal prosecution, as well as civil fraud and information return penalties.

The IRS estimates that thousands of U.S. citizens may be purposefully avoiding taxes through such practices as transferring unreported income to foreign financial institutions and then using credit, debit, or charge cards issued by those institutions to spend the money. Holding the cards is not illegal, the IRS said, but using them and foreign institutions to hide income is.

The initiative covers taxes for four years: 1999 through 2002. However, individuals must report suspect offshore financial practices regardless of when they occurred, and are subject to further review and assessments in all cases if the IRS determines there has been "substantial tax avoidance."

Promoters of the schemes are not eligible for protection.

"We are striking the proper balance with this initiative, " said acting IRS Commissioner Bob Wenzel in a news release. "Those who misused offshore credit and other payment cards will be able to pay their fair share. Just as importantly, it will help the IRS get the people promoting these deals."

The initiative grew out of efforts that began in 2000, when the IRS was authorized by U.S. District Courts to serve "John Doe" summonses to businesses, seeking "limited information" on people and businesses who hold cards issued by financial institutions in Antigua and Barbuda, the Bahamas, and the Cayman Islands.

The "John Doe" initiative has grown to include over 100 U.S. businesses, and cards issued by banks in over 30 countries. The IRS said the investigation has "entailed combing through data on millions of transactions" and allowed the IRS to identify "hundreds of cases for civil audits or potential criminal investigation."

Violators may have a lot to gain by coming clean. The IRS said a taxpayer who understated income to avoid $100,000 in taxes would probably pay only $149,319 under the initiative. By not stepping forward, the same taxpayer would pay at least $217,758, and still face possible civil penalties.
-----------------

The article on CNN is Here.

A couple or so years ago, there was lots of talk on the adult webmaster boards about offshore stuff. Knowing how alot of people in this biz do things, I can't imagine most of the average webmasters going offshore in a legit fashion.

Is the IRS about to get a LOT of calls from adult webmasters looking to fess up?

Winetalk.com · 01-15-2003

Is the IRS about to get a LOT of calls from adult webmasters looking to fess up?
***************************

do they pay any "finders fees"?
;-)))

Sword · 01-15-2003

Quote:

Originally posted by Serge_Oprano@Jan 15 2003, 03:00 PM
Is the IRS about to get a LOT of calls from adult webmasters looking to fess up?
***************************

do they pay any "finders fees"?
;-)))

Ahahaha I had a bet with myself, that a finders fee question would come up in this thread within the first few responses!

They probably do. Interestingly, the deal doesn't extend to the PROMOTERS of illegal offshore schemes. Those guys, they want to put the screws to.

Hooper · 01-15-2003

I think it's really important to distinguish between offshore "schemes" that promote sending money offshore and then bringing it back *without* paying taxes on it (e.g. via credit cards linked directly to the bank accoun) and very legitimate asset protection and tax deferral plans.

The latter is quite legit and legal.

Sword · 01-15-2003

Yes I completely agree Hooper and thought about clarifying that in my post. What I did say though, was "Knowing how alot of people in this biz do things, I can't imagine most of the average webmasters going offshore in a legit fashion."

For example, I've seen lots of GFY'er types asking about how to set up an offshore account and then bring their funds back in thru an offshore Visa card.

Definitely there are plenty of legit and completely legal offshore techniques and methods and the two shouldn't be confused on any level.

I imagine any of the big and successful in this business who have gone that route, have done things correctly and legally.

A lot of smaller guys probably tried to get in on the action by doing it incorrectly and illegally.

Nickatilynx · 01-15-2003

Quote:

I think it's really important to distinguish between offshore "schemes" that promote sending money offshore and then bringing it back *without* paying taxes on it (e.g. via credit cards linked directly to the bank accoun) and very legitimate asset protection and tax deferral plans.

The latter is quite legit and legal

Betcha there are a lot of bankrupt people that believed just that hoop

Contact Ant btw

01-15-2003	#2
Winetalk.com Prostate Examiner I quoff fine wine at corkd.com Join Date: Oct 2002 Location: good 'ole USA Posts: 21,018	Is the IRS about to get a LOT of calls from adult webmasters looking to fess up? ************************* do they pay any "finders fees"? ;-))) __________________ why dogs sniff each other butts?**

01-15-2003	#4
Hooper Members Join Date: Oct 2002 Posts: 1,156	I think it's really important to distinguish between offshore "schemes" that promote sending money offshore and then bringing it back without paying taxes on it (e.g. via credit cards linked directly to the bank accoun) and very legitimate asset protection and tax deferral plans. The latter is quite legit and legal. __________________ Quickbuck is paying $100 Per trial join.

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01-15-2003	#1
Sword Members Join Date: Oct 2002 Posts: 208	IRS offering deal to offshore tax cheats Tuesday, January 14, 2003 WASHINGTON (CNN) -- The Internal Revenue Service, hoping to recapture tax money lost through the use of off-shore financial dodges, is offering violators a chance to escape prosecution if they come clean -- and give the IRS information on people who promote the illegal practices. To qualify under the program, taxpayers who have used offshore payment cards or other offshore financial arrangements to hide taxable income must first report the income; second, pay any back taxes, interest, and some "accuracy or delinquency" penalties; and, finally, give the IRS complete information about promoters of the suspect arrangements. Taxpayers who formally request to participate in the program -- named the Offshore Voluntary Compliance Initiative -- by April 15 will be able to avoid criminal prosecution, as well as civil fraud and information return penalties. The IRS estimates that thousands of U.S. citizens may be purposefully avoiding taxes through such practices as transferring unreported income to foreign financial institutions and then using credit, debit, or charge cards issued by those institutions to spend the money. Holding the cards is not illegal, the IRS said, but using them and foreign institutions to hide income is. The initiative covers taxes for four years: 1999 through 2002. However, individuals must report suspect offshore financial practices regardless of when they occurred, and are subject to further review and assessments in all cases if the IRS determines there has been "substantial tax avoidance." Promoters of the schemes are not eligible for protection. "We are striking the proper balance with this initiative, " said acting IRS Commissioner Bob Wenzel in a news release. "Those who misused offshore credit and other payment cards will be able to pay their fair share. Just as importantly, it will help the IRS get the people promoting these deals." The initiative grew out of efforts that began in 2000, when the IRS was authorized by U.S. District Courts to serve "John Doe" summonses to businesses, seeking "limited information" on people and businesses who hold cards issued by financial institutions in Antigua and Barbuda, the Bahamas, and the Cayman Islands. The "John Doe" initiative has grown to include over 100 U.S. businesses, and cards issued by banks in over 30 countries. The IRS said the investigation has "entailed combing through data on millions of transactions" and allowed the IRS to identify "hundreds of cases for civil audits or potential criminal investigation." Violators may have a lot to gain by coming clean. The IRS said a taxpayer who understated income to avoid $100,000 in taxes would probably pay only $149,319 under the initiative. By not stepping forward, the same taxpayer would pay at least $217,758, and still face possible civil penalties. ----------------- The article on CNN is Here. A couple or so years ago, there was lots of talk on the adult webmaster boards about offshore stuff. Knowing how alot of people in this biz do things, I can't imagine most of the average webmasters going offshore in a legit fashion. Is the IRS about to get a LOT of calls from adult webmasters looking to fess up?