Question

Consider the role of the United States Treasury Department, the Internal Revenue Service, in International Taxation. What do you think are the major obstacles facing the Internal Revenue Service as our markets continue to become more international? As you continue to evolve in our international markets, how might the Internal Revenue Service’s role change?

Answer 1

Solution:

The Internal Revenue Service (IRS) is the revenue service of the United States, United States of Federal government. There is long standing monetary globalization challenge that IRS faces as it endeavors to improve its activity, processes, client assistance and association. The issue that keeps on undermining the adequacy of IRS's programs incorporates:

• Internal Revenue Service is tested by an absence of data reporting a lot of cross-border transaction. IRS is still issue of tax avoidance or tax evasion by global organizations. These incorporate the utilization of different transfer pricing systems for the avoidance of taxes.
• Internal Revenue Service faces the issue of inconvenience of twofold taxation treaties for organizations that work in various countries because of various administrative orders.
• The changing legal requirements or necessities that are imposed by various locales lead to complex business structures that make it difficult to decide the full extension and impact of cross-border transactions

As the business sectors or market keep on getting progressively universal, IRS additionally keeps on or continue realigning and extend its worldwide endeavors under its Large Business and International Division. The IRS expects that these endeavors will improve worldwide or international tax compliance consistence allowing it's essential spotlight on high-risk issues and cases with more prominent more productivity and consistency. The IRS continues working alongside the United States Department of Justice on tax avoidance or tax evasion cases including remote countries with bank secret laws that keep US from getting data on citizen or taxpayer transactions. To evade the above talked about obstructions IRS might be required to consent to arrangements and settlements on twofold taxation with tax authorities in different nations which are a host to the United States companies. Furthermore to interest in effective present day innovation for the nearby checking on the offshore transactions which are primary source of tax avoidance.