Innovative Strategies For Winning Tax Controversies, Business Structuring And Estate Planning

PayPal releases information to IRS

by | Nov 18, 2005 | Uncategorized

Paypal Names Names As IRS Chases Tax Evaders

PayPal, the internet money-transfer arm of eBay, is to disclose the identity of customers who use the service to evade paying US taxes.The US Internal Revenue Service (IRS) is demanding records of customers using PayPal through offshore accounts in all tax havens, including Jersey, Guernsey, Isle of Man,Gibraltar and other UK dependencies, says The independent newspaper.

It is part of an American clamp-down on the use of offshore centers for tax evasion. According to the IRS, PayPal’s services have proved very attractive to tax evaders and the problem is growing.Customers can buy goods from eBay and many other shopping websites, pay for them from untaxed income held offshore and get the goods sent to their home address, says the newspaper. Tax authorities are also concerned that PayPal can be used to “launder” untaxed money between an individual’s offshore and domestic accounts.

Click here for the full article.