Former IRS Commissioner: FATCA May Slow, but Not Stop Tax Evasion

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Oct. 7 —  The Foreign Account Tax Compliance Act “will not be a panacea for evasion” despite intensifying efforts by the U.S. and dozens of other countries to stop taxpayers from hiding assets offshore, former IRS acting commissioner Steven Miller said.

“Noncompliance will never be completely eradicated,” Miller said at a FATCA symposium sponsored by the Securities Industry and Financial Markets Association. “We have yet to see the full range of creative ways used to hide assets.”

Even though it is too soon to say whether the benefit of FATCA is going to outweigh the cost, the law is “a vital component in the toolbox,” said Miller, now national director of tax at alliantgroup, a tax consulting firm. “The work's not done.”