{"article":{"id":98142,"heading":"U.S. watchdog says about 400,000 use tax dodges","author":"Reuters","created":"2003-12-21 00:35:16","modified":"2003-12-21 00:35:16","last_modified":"Sun, 21 Dec 2003 08:35:16","article":"<br>  <br> December 19, 2003 <br><br> Conservative estimates by U.S. tax officials show that about 400,000 taxpayers have tried to use offshore credit cards and other means to dodge taxes, the General Accoounting Office, Congress' watchdog agency, said on Friday.  <br><br> The Internal Revenue Service used the 400,000 figure in budget discussions with the Treasury Department and the Office of Management and Budget, the GAO said in a report released Friday. It said the IRS based the estimate on promoters of tax shelters it had identified so far, using \"conservative\" assumptions about the number of investors linked to each.  <br><br> The administration's proposed fiscal 2005 budget request is expected early next year.  <br><br> \"We noted that abusive schemes could threaten our tax system's integrity and fairness if honest taxpayers beleive that significant numbers of individuals are not paying their fair share of taxes,\" the GAO said.  <br><br> It was also critical of IRS efforts to shift resources to combat \"abusive schemes,\" finding the IRS had been overly optimistic in its forecasts of progress in tracking down cheaters.  <br><br> \"Despite receiving requested budget increases, staffing levels in key occupations were lower in 2002 than in 2000. These declines ocurred for reasons such as unbudgeted expenses consuming budget increases and other operational workload increases,\" the GAO said.  <br><br> In his written response to the report, IRS Commissioner Mark Everson said the agency had \"over-estimated\" its ability to work through investigation leads but said the IRS planned to develop \"process and results-oriented\" goals ahead. \n","contact":"","link":"http:\/\/www.reuters.com\/financeNewsArticle.jhtml?storyID=4024983&type=economicNews","address":"","phone":"","parent_id":0,"mime_type":"text\/plain","summary":"Abusive schemes could threaten our tax system's integrity and fairness if honest taxpayers beleive that significant numbers of individuals are not paying their fair share of taxes","numcomment":0,"fileurl":"\/uploads\/","filesize":null,"article_url":"\/news\/2003\/12\/98142.php"},"attachments":[],"comments":[]}