Date of Completion

Fall 12-15-2015

Thesis Advisor(s)

Amy Dunbar

Honors Major

Accounting

Disciplines

Taxation

Abstract

With taxation of income being the most significant source of revenue, most national governments consider tax evasion prevention to be one of the priorities of their tax agencies. In the United States, tax evasion has been a significant concern of the Internal Revenue Service ever since the modern income tax was instituted with the passing of the Sixteenth Amendment in 1913. Over the following century, Congress enacted numerous measures aimed at curbing the illegal practice, but, as often is the case, both individuals and institutions desiring to not abide by the law found new ways to outsmart the tax authorities. However, the recently introduced Foreign Account Tax Compliance Act (FATCA), the most complex piece of tax legislation in modern times, will make tax evasion much more difficult, if not quite impractical. Through a system of reporting requirements and severe penalties, the law aims to discourage the unlawful practice, while at the same time it significantly amplifies the powers of the IRS. FATCA will thus revolutionize the American tax regime and also serve as a significant step toward the introduction of a global tax system in the future.

Included in

Taxation Commons

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