IRS Seeks Access To More Records In Offshore Credit Card Probe

by Mike Godfrey, Tax-News.com, Washington

19 August 2002

It emerged last week that the US Internal Revenue Service is expanding its investigation into the undeclared use of offshore credit cards by US citizens.

It was reported on Thursday that the Department of Justice asked a federal court in Miami to allow the tax authority to serve a 'John Doe' summons on credit card issuer MasterCard International, allowing the IRS to obtain information about people whose identities are not currently known.

Although the Internal Revenue Service has had similar requests granted in the past, the current 'fishing trip' is taking place on a far grander scale - access to MasterCard records for the period between 1999 and 2001, in some 30 countries is now being sought.

However, the outcome of the case was never really in much doubt, as the IRS was recently granted permission by a federal court to issue a summons on Visa International for card records in the same 30 countries.

Speaking on Thursday, IRS Commissioner, Charles Rossotti revealed that as a result of this and other earlier initiatives, 'hundreds' of cases of US citizens using offshore credit cards to evade taxes have been uncovered.

'The agency is committed to following up on this issue and pursuing individuals dodging their tax responsibilities,' he warned last week, adding that: 'The IRS effort should send a clear signal to tax evaders.'

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