Senators plan laws to target offshore tax evasion

0 Comments | USA TODAY, July, 2008 | by Kevin McCoy

Senate Finance Committee leaders announced plans for new laws against offshore tax evasion Thursday after a new federal report found American ties to thousands of firms registered in the Cayman Islands.

Sens. Max Baucus, D-Mont., and Charles Grassley, R-Iowa, said the IRS needs a longer statute of limitations to prosecute those who fail to report foreign accounts, clearer authority to enforce the filing requirement and stricter identity-disclosure rules for those who profit from offshore transactions.

"We also need to reform our tax code to make moving business offshore less attractive," said Baucus. "That's a tall order."

Specific legislation is expected to be introduced later this year. The preliminary descriptions were announced during a...