• Analyst of S. 1346, the Stop Tax Haven Abuse Act
  • August 29, 2011 | Author: John J. Jr.
  • Law Firm: Jones, Walker, Waechter, Poitevent, Carrère & Denègre L.L.P. - Washington Office
  • On July 11, 2011, Senator Carl Levin (D-MI), along with five of his Senate colleagues, introduced S.1346, the Stop Tax Haven Abuse Act, which was referred to the Senate Finance Committee. The bill amends a number of existing laws, including the Internal Revenue Code of 1986, the U.S.A. Patriot Act of 2001, the Foreign Account Tax Compliance Act (FATCA), and the Securities Acts of 1933 and 1934. Each of these proposed amendments has the stated purpose of curtailing the use of offshore jurisdictions by U.S. individuals and entities for banking and other purposes in order to increase the collection of U.S. income taxes by individuals and businesses that are currently, or under this legislation would be deemed to be subject to the U.S. income tax system. S.1346 is the most recent effort on the part of Senator Levin and others in Congress to advance legislative proposals that would help eliminate the so-called “U.S. tax gap.” One point to keep in mind when evaluating the prospects of all or part of this legislation becoming the law of the land is that several related proposals advanced by Senator Levin recently became law as part of the Hire Act (P.L. 111-147). The commission formed to address the federal debt will also be making recommendations.