Washington - The Internal Revenue Service said that its nine-month-old Abusive Tax Avoidance Transaction Partnership - a coalition of 48 states, New York City and the District of Columbia to battle tax abuses- has resulted in the sharing of 28,000 leads with the various states and has uncovered millions of dollars in abusive transactions.
IRS Commissioner Mark Everson said that as a result, the ATAT Partnership would be expanded to include money laundering.

Everson added that the IRS and states are exploring new ways to extend cooperation with state tax administrators to reduce duplication, improve taxpayer service and intensify the fight against non-compliance with the state and federal tax systems.

Currently, there are a variety of joint initiatives with the states underway or under consideration, including:

  • State Income Tax Reverse Filing Match - Under this initiative, the IRS would match state income tax filing information against federal data to identify discrepancies, including potential non-filers and those underreporting income.
  • Fed/State Offshore Payment Card Matching Initiative - Where the IRS is expanding use of state databases to assist in identifying and locating taxpayers who have participated in off-shore credit card abuse.
  • Title 31 Money Services Business Memorandum of Understanding - Currently in the final stages of preparation, the agreement would establish a framework for the federal-state exchange of examination information that would enhance compliance by money services.
  • Federal State Internet Employee Identification Number- Taxpayers would be able to go online and simultaneously obtain an EIN from the IRS and a registration number for sales tax and/or income tax from their home state.

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