IRS Compels PayPal to Release Info

An anonymous reader writes "Just in time for the tax season, the IRS won a federal court ruling, allowing them to force PayPal to turn over records of American taxpayers who have certain foreign accounts. It's all part of an ongoing effort to track down money held in offshore accounts by would-be taxpayers. A spokesperson for PayPal acknowledged receiving the summons (PDF) and said 'We're still evaluating our options [...] The privacy of our customers' information is something we take really seriously.'"

Comments

Aww, poor tax evaders!

[DrEldarion]

The privacy of our customers' information is something we take really seriously.

Unfortunately, the article cut out the rest of what was said. The full quote is as follows:

The privacy of our customers' information is something we take really seriously. This is so we can give them the illusion of actually caring while we continue to fleece them. Fools!

Sorry, but I have to side with the IRS here. Everyone who isn't paying the taxes they're supposed to be deserves to be found out. People who cheat on their taxes just make the rest of us pay more. In 2001, there was a discrepency of $311 billion between what was owed and what people paid. $311 billion! If half the people in the US pay taxes (I have no idea the true ratio), then that's $2000 less on average per taxpayer that would need to be paid (and actually, even more than that for the honest taxpayers, as the dishonest ones would be paying more). Alternatively, that's a good portion of the budget deficit.

Privacy is necessary, but honestly, screw tax evaders.

Re:Aww, poor tax evaders!

[Billosaur]

Sorry, but I have to side with the IRS here. Everyone who isn't paying the taxes they're supposed to be deserves to be found out. People who cheat on their taxes just make the rest of us pay more.

From CNN: The request for information is an outgrowth of an IRS effort, begun several years ago, to trace money that American taxpayers hold offshore to avoid paying taxes. The IRS said many of those taxpayers access their money through credit and debit cards. The tax collectors have already obtained information from some credit card companies, merchants and payment processors.

"PayPal is another one of the mechanisms by which money stashed overseas might be spent," Eileen O'Connor, assistant attorney general for the Justice Department Tax Division, told reporters.

Mind you, while I applaud the IRS's efforts (something I never thought I'd hear myself say), I'd like to know when they plan on applying the same hammer to US corporations and businesses that do the same thing. Hey, if the average dishonest American citizen is going to be made to pay up, let's have some of that dirty money that fatcat CEOs are squirreling away too. I don't like taxes, taxation, and the IRS any more than anyone else, but as long as we're going to have the current system of taxation, then everyone needs to play fair and pay up. If you're an honest citizen, you don't have much to worry about.

Civil contempt can mean serious jail time.

[QuessFan]

If the assest protection depends on hiding assests, than it's not an legit asset protection.

A lot of what you said is just asset hiding, which you don't need to go off-shore tax heaven. It's just much harder to discover. Once there is a civil money judgement against your, the plantiff attorneys will surely file discovery request on your assets. You can try to hide, but have fun with jail times for cotempt or prejury if discovered.

And unless you fled with your money. The court still have power over you. You can build "anti-duress" provision into your off-shore asset protection trust. But if judge jail you for civil contempt, what are you going to do?

Don't believe me, search for "H Beatty Chdwick" for someone who hides 2.5 millions in oversea account and jailed over a decade for it.

For more recent case(Maybe too recent), searh for John Kontrabecki.