Trump Proposes New Agency to Increase Foreign Revenue Collection

President Trump has proposed the creation of a new federal agency to increase foreign revenue collection. The agency, which would be called the International Revenue Enforcement Service (IRES), would be responsible for investigating and prosecuting cases of tax evasion and fraud involving foreign individuals and entities.

The Need for a New Agency

The Trump administration argues that a new agency is needed to address the growing problem of tax evasion by foreign entities. According to the Treasury Department, the United States loses an estimated $40 billion annually to tax evasion by foreign individuals and companies.

The administration also argues that the current system for investigating and prosecuting tax evasion by foreign entities is inadequate. The Internal Revenue Service (IRS) has limited resources to devote to this issue, and it often lacks the expertise to investigate complex international tax fraud cases.

The Proposed Agency

The IRES would be a new agency within the Treasury Department. It would be responsible for investigating and prosecuting cases of tax evasion and fraud involving foreign individuals and entities. The IRES would have the authority to subpoena records, conduct audits, and interview witnesses. It could also recommend criminal charges to the Department of Justice.

The Pros and Cons of the Proposal

The proposal to create a new agency to increase foreign revenue collection has been met with mixed reactions. Some experts argue that a new agency is needed to address the growing problem of tax evasion by foreign entities. Others argue that the proposal is unnecessary and that the IRS can handle this issue on its own.

Here are some of the pros and cons of the proposal:

Pros:

• A new agency would be able to focus exclusively on tax evasion by foreign entities.
• A new agency would have the expertise to investigate complex international tax fraud cases.
• A new agency could help to increase the amount of revenue collected from foreign entities.

Cons:

• A new agency would be expensive to create and operate.
• A new agency could duplicate the work of the IRS.
• A new agency could create a new layer of bureaucracy.

Conclusion

The proposal to create a new agency to increase foreign revenue collection is a complex issue with both pros and cons. The decision of whether or not to create a new agency will ultimately be up to Congress.

In the meantime, the IRS is taking steps to address the issue of tax evasion by foreign entities. The IRS has recently created a new unit to focus on international tax enforcement. The IRS is also working with other countries to share information and coordinate enforcement efforts.

The efforts of the IRS and other countries are beginning to show results. In recent years, the IRS has collected billions of dollars in additional revenue from foreign entities. This suggests that the IRS is making progress in addressing the problem of tax evasion by foreign entities.

Whether or not a new agency is needed, it is clear that the United States is losing billions of dollars annually to tax evasion by foreign entities. The IRS and other countries are taking steps to address this issue, and their efforts are beginning to show results.