Cash-Strapped IRS Slashes Evasion Penalty

By Harry Kimball,  Newser Staff
Posted Mar 26, 2009 2:33 PM CDT
Cash-Strapped IRS Slashes Evasion Penalty
IRS Commissioner Douglas Shulman.   (AP Photo)

In an effort to increase revenue, the Internal Revenue Service is relaxing penalties on offshore tax evaders in hopes they will come forward, the New York Times reports. A penalty that was 50% of offshore holdings will drop as low as 5%. “They need to get money back into the system,” an insider said, “so they needed to sweeten the deal.” (More IRS stories.)

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