1,720,967 research outputs found
Many Unhappy Returns: The Need for Increased Tax Penalties for Identity Theft-Based Refund Fraud
Full text linkThe growing problem of fraudulent tax returns being submitted based on stolen identities is a “tsunami of fraud,” and victims, lawmakers, and law enforcement are struggling with how to deal with the fallout. The issues surrounding identity theft-based tax fraud are complex. Current IRS efforts to stem the tide involve pouring resources into assisting victims, updating IRS processes to detect and prevent refund fraud, and increasing the number of criminal investigations and prosecutions it pursues. The IRS’s approach and pending proposed legislation are not enough to address the problems created by identity theft-based tax fraud. This Article argues the IRS and Congress must use a holistic approach to attack this species of tax fraud. To that end, this Article supports enhanced criminal penalties and proposes new civil tax penalties aimed specifically at identity theft tax fraud. This Article pursues two goals. First, it documents and explains the problem of identity theft-based refund fraud, highlighting particular issues with respect to tax compliance. In so doing, it analyzes existing civil and criminal tax penalties to punish and deter identity thieves, an analysis which reveals that existing criminal penalties are insufficient and that there is no directly applicable existing civil penalty. Second, to address the gaps in existing law, the Article proposes standards for Congress to use in crafting a comprehensive penalty scheme to apply to identity theft-based refund fraud. This Article proceeds in three parts. Part II addresses the nature and scope of identity theft tax fraud, explaining the consequences such fraud has on tax administration, fair enforcement, and public confidence in voluntary compliance, which is the bedrock of our tax system. Part III explores the inadequacy of existing criminal and civil penalties. Part IV then proposes legislative action, evaluates proposed and pending legislation, and makes specific recommendations for enhanced criminal penalties and the creation of a new civil penalty aimed specifically at identity theft-based tax fraud
SALT Policies to Reduce the Disparate Impact of COVID-19 in Indian Country
No full textAs we look to the future and imagine post-pandemic economies for states, localities, and Native American Indian nations, states have an opportunity to help support tribal economies while growing their own economies in the long term. This essay sets forth the case that states should, at a minimum, adopt policies requiring government-to-government negotiations that respect tribal sovereignty or, even better, refrain from asserting their potential taxing authority over transactions in Indian country. In doing so, states would support the revitalization of tribal economies and position themselves for sustainable long-term growt
Sacrificing Sovereignty: How Tribal-State Tax Compacts Impact Economic Development in Indian Country
Full text linkEconomic development is a critical component of tribal sovereignty. When a state asserts taxing authority within Indian Country, there is potential for overlapping, or juridical, taxation over the same transaction. Actual or even potential juridical taxation threatens economic development opportunities for tribes. For many years, tribes and states have entered into intergovernmental agreements called tax compacts to reduce or eliminate juridical taxation. Existing literature has done little more than mention tax compacts with cursory cost-benefit analyses of the agreements. This is the first Article to critically examine the role tax compacts serve in promoting tribes’ economic development.
This Article analyzes economic development activities in Indian Country as two types of transactions: when the tribe or tribal enterprise is engaging as a retailer, and when a tribe or tribal enterprise is working with non-tribal entities in joint ventures. Using these categories of transactions as a framework, and looking to existing compacts between various tribes and states as examples, the analysis focuses on the impact compacts have on economic development in Indian Country. This Article argues that compacts do not live up to the promise of resolving juridical taxation in a manner that fosters economic development opportunities for tribes
From Zero-Sum to Economic Partners: Reframing State Tax Policies in Indian Country in the Post-COVID Economy
No full textThe disparate impact COVID-19 has had on Indian Country reveals problems centuries in the making from the legacy of colonialism. One of those problems is state encroachment in Indian Country, including attempts to assert taxing authority within Indian Country. The issue of the reaches of state taxing authority in Indian Country has resulted in law that is both uncertain and highly complex, chilling both outside investment and economic development for tribes. As the United States emerges from COVID-19, to focus only on the toll exacted on tribes and their peoples ignores the tremendous opportunities for states to right these historical wrongs. Buoyed by federal COVID-relief funds, state and local governments are in a financial position to reframe their tax policies to promote tribal sovereignty and support economic development in Indian Country. This article argues for states to make diplomatic, responsible state and local tax policies that will create healthier intergovernmental relationships and an environment that in turn creates broader economic growth for tribes and states alike. Through policies requiring state governments to consult with tribes to make joint decisions on tax policy and by refraining from exercising taxing authority in Indian Country, states can move from a zero-sum game. Instead of competing for precious tax revenue, state and local governments can partner with tribes to expand the total amount of available revenue streams. Doing so will not just right the historical wrongs of colonialism—it could also help prevent future crises, such as the COVID-19 pandemic, from having such a disparate impact on tribes again
Many Unhappy Returns: The Need for Increased Tax Penalties for Identity Theft-Based Refund Fraud
No full textThe growing problem of fraudulent tax returns being submitted based on stolen identities is a “tsunami of fraud,” and victims, lawmakers, and law enforcement are struggling with how to deal with the fallout. The issues surrounding identity theft-based tax fraud are complex. Current IRS efforts to stem the tide involve pouring resources into assisting victims, updating IRS processes to detect and prevent refund fraud, and increasing the number of criminal investigations and prosecutions it pursues. The IRS’s approach and pending proposed legislation are not enough to address the problems created by identity theft-based tax fraud. This Article argues the IRS and Congress must use a holistic approach to attack this species of tax fraud. To that end, this Article supports enhanced criminal penalties and proposes new civil tax penalties aimed specifically at identity theft tax fraud. This Article pursues two goals. First, it documents and explains the problem of identity theft-based refund fraud, highlighting particular issues with respect to tax compliance. In so doing, it analyzes existing civil and criminal tax penalties to punish and deter identity thieves, an analysis which reveals that existing criminal penalties are insufficient and that there is no directly applicable existing civil penalty. Second, to address the gaps in existing law, the Article proposes standards for Congress to use in crafting a comprehensive penalty scheme to apply to identity theft-based refund fraud. This Article proceeds in three parts. Part II addresses the nature and scope of identity theft tax fraud, explaining the consequences such fraud has on tax administration, fair enforcement, and public confidence in voluntary compliance, which is the bedrock of our tax system. Part III explores the inadequacy of existing criminal and civil penalties. Part IV then proposes legislative action, evaluates proposed and pending legislation, and makes specific recommendations for enhanced criminal penalties and the creation of a new civil penalty aimed specifically at identity theft-based tax fraud
From Zero-Sum to Economic Partners: Reframing State Tax Policies in Indian Country in the Post-COVID Economy
Full text linkThe disparate impact COVID-19 has had on Indian Countryreveals problems centuries in the making from the legacy ofcolonialism. One of those problems is state encroachment inIndian Country, including attempts to assert taxing authoritywithin Indian Country. The issue of the reaches of state taxingauthority in Indian Country has resulted in law that is bothuncertain and highly complex, chilling both outside investmentand economic development for tribes.As the United States emerges from COVID-19, to focus only on thetoll exacted on tribes and their peoples ignores the tremendousopportunities for states to right these historical wrongs. Buoyed byfederal COVID-relief funds, state and local governments are in afinancial position to reframe their tax policies to promote tribalsovereignty and support economic development in Indian Country.This article argues for states to make diplomatic, responsible state and local tax policies that will create healthier intergovernmentalrelationships and an environment that in turn creates broadereconomic growth for tribes and states alike. Through policiesrequiring state governments to consult with tribes to make jointdecisions on tax policy and by refraining from exercising taxingauthority in Indian Country, states can move from a zero-sumgame. Instead of competing for precious tax revenue, state andlocal governments can partner with tribes to expand the totalamount of available revenue streams. Doing so will not just rightthe historical wrongs of colonialism—it could also help preventfuture crises, such as the COVID-19 pandemic, from having sucha disparate impact on tribes again
Sacrificing Sovereignty: How Tribal-State Tax Compacts Impact Economic Development in Indian Country
No full textEconomic development is a critical component of tribal sovereignty. When a state asserts taxing authority within Indian Country, there is potential for overlapping, or juridical, taxation over the same transaction. Actual or even potential juridical taxation threatens economic development opportunities for tribes. For many years, tribes and states have entered into intergovernmental agreements called tax compacts to reduce or eliminate juridical taxation. Existing literature has done little more than mention tax compacts with cursory cost-benefit analyses of the agreements. This is the first Article to critically examine the role tax compacts serve in promoting tribes’ economic development.
This Article analyzes economic development activities in Indian Country as two types of transactions: when the tribe or tribal enterprise is engaging as a retailer, and when a tribe or tribal enterprise is working with non-tribal entities in joint ventures. Using these categories of transactions as a framework, and looking to existing compacts between various tribes and states as examples, the analysis focuses on the impact compacts have on economic development in Indian Country. This Article argues that compacts do not live up to the promise of resolving juridical taxation in a manner that fosters economic development opportunities for tribes
Many Unhappy Returns: The Need for Increased Tax Penalties for Identity Theft-Based Refund Fraud
No full textThe growing problem of fraudulent tax returns being submitted based on stolen identities is a “tsunami of fraud,” and victims, lawmakers, and law enforcement are struggling with how to deal with the fallout. The issues surrounding identity theft-based tax fraud are complex. Current IRS efforts to stem the tide involve pouring resources into assisting victims, updating IRS processes to detect and prevent refund fraud, and increasing the number of criminal investigations and prosecutions it pursues. The IRS’s approach and pending proposed legislation are not enough to address the problems created by identity theft-based tax fraud. This Article argues the IRS and Congress must use a holistic approach to attack this species of tax fraud. To that end, this Article supports enhanced criminal penalties and proposes new civil tax penalties aimed specifically at identity theft tax fraud. This Article pursues two goals. First, it documents and explains the problem of identity theft-based refund fraud, highlighting particular issues with respect to tax compliance. In so doing, it analyzes existing civil and criminal tax penalties to punish and deter identity thieves, an analysis which reveals that existing criminal penalties are insufficient and that there is no directly applicable existing civil penalty. Second, to address the gaps in existing law, the Article proposes standards for Congress to use in crafting a comprehensive penalty scheme to apply to identity theft-based refund fraud.This Article proceeds in three parts. Part II addresses the nature and scope of identity theft tax fraud, explaining the consequences such fraud has on tax administration, fair enforcement, and public confidence in voluntary compliance, which is the bedrock of our tax system. Part III explores the inadequacy of existing criminal and civil penalties. Part IV then proposes legislative action, evaluates proposed and pending legislation, and makes specific recommendations for enhanced criminal penalties and the creation of a new civil penalty aimed specifically at identity theft-based tax fraud
A Consumer Protection Rationale for Regulation of Tax Return Preparers
Full text linkOf the 150 million tax returns filed each year, approximately fifty-six percent are prepared with the help ofa paid preparer. Although state-licensed lawyers and certified public accountants may prepare tax returns for clients, the vast majority ofpaid tax return preparers are completely unregulated. For low-income taxpayers who are eligible for refundable tax credits, these unregulated tax return preparers do more than just fill out tax returns. Return preparers who serve low-income taxpayers often also market consumer credit products, such as refund anticipation loans or checks. Government agencies and consumer advocates have documented widespread problems with the tax return preparer industry. In 2011, the IRS promulgated regulations on tax return preparers by instituting minimum competency, background investigation, and continuing education requirements. But in Loving v. Internal Revenue Service, the Circuit Court of Appeals for the D.C. Circuit struck down the regulations on the grounds that they exceeded the scope of the enabling statute. The IRS indicated it would pursue a legislative fix. In the wake of the government\u27s defeat in Loving, policy makers, scholars, and practitioners are weighing in on the question of how tax return preparers should be regulated. This Article addresses a more fundamental question: Why should tax return preparers be regulated? The calls for regulations and much of the existing literature on regulating tax return preparers explicitly stated or implicitly assumed that regulation would improve tax compliance. This Article contends that, while any improvement ofcompliance rates would be a benefit ofregulation, the rationale for regulating tax return preparers who prepare tax returns for the working poor and sell consumer credit products should be to protect taxpayers as consumers. In support of this proposal, this Article first describes the myriad of services provided and products sold by tax return preparers to low-income taxpayers. Second, relying on empirical evidence on the relationship between tax return preparers and compliance, this Article challenges the rationale that regulation will improve compliance. Third, and finally, this Article re-frames regulation as a mode of consumer protection, supported by the relationship among low-income taxpayers, the government, and tax return preparers and as a check upon the market incentives that allow for exploitation of low-income taxpayers
Many Unhappy Returns: The Need for Increased Tax Penalties for Identity Theft-Based Refund Fraud
Full text linkThe growing problem offraudulent tax returns being submitted based on stolen identities is a tsunami offraud, and victims, lawmakers, and law enforcement are struggling with how to deal with the fallout. The issues surrounding identity theft-based tax fraud are complex. Current IRS efforts to stem the tide involve pouring resources into assisting victims, updating IRS processes to detect and prevent refund fraud, and increasing the number of criminal investigations and prosecutions it pursues. The IRS\u27s approach and pending proposed legislation are not enough to address the problems created by identity theft-based tax fraud. This Article argues the IRS and Congress must use a holistic approach to attack this species of tax fraud. To that end, this Article supports enhanced criminal penalties and proposes new civil tax penalties aimed specifically at identity theft tax fraud. This Article pursues two goals. First, it documents and explains the problem of identity theft-based refund fraud, highlighting particular issues with respect to tax compliance. In so doing, it analyzes existing civil and criminal tax penalties to punish and deter identity thieves, an analysis which reveals that existing criminal penalties are insufficient and that there is no directly applicable existing civil penalty. Second, to address the gaps in existing law, the Article proposes standards for Congress to use in crafting a comprehensive penalty scheme to apply to identity theft-based refund fraud. This Article proceeds in three parts. Part II addresses the nature and scope of identity theft tax fraud, explaining the consequences such fraud has on tax administration, fair enforcement, and public confidence in voluntary compliance, which is the bedrock of our tax system. Part III explores the inadequacy of existing criminal and civil penalties. Part IV then proposes legislative action, evaluates proposed and pending legislation, and makes specific recommendations for enhanced criminal penalties and the creation of a new civil penalty aimed specifically at identity theft-based tax fraud
- …
