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It is hard to anticipate all future transactions and to draft rules accordingly. In addition, at some point the strategy becomes self-defeating. As more and more rules are promulgated, there are more interactions among the rules (with interactions rising more than proportionately with the number of rules). These interactions will inevitably lead to mistaxed transactions, and the process reiterates. Standards, however, allow one to deal with unanticipated transactions only as they arise, because one only needs to determine exactly how the law should treat a given transaction after the fact.

S. S. 1 It is at least relatively difficult for the IRS to identify these persons. For example, it is my understanding that the IRS does not systematically cross-check green cards or passports against filed returns to find persons outside the United 1. Treasury Regulations, sec. 6012-1(a) and (b).  .   States who are not filing. The principal tool it has available is to threaten to penalize those who fail to comply. S. citizens or residents who fail to file returns. 2 The penalty for failure to comply with this rule is modest, however, and although numerous filings are in fact made, compliance is surely less than 100 percent.

What of the professions? One cannot expect representatives of the Big Four accounting firms to play a disinterested role; they are leading sellers of shelters. Smaller national and even regional accounting firms have the same conflict. Lawyers have somewhat more freedom, and some members of the private bar have done yeoman’s duty in this area. However, the lawyers most in the thick of things are also conflicted. Those of us in academia who write on the issue frequently get calls from members of the bar who are willing to give the outlines of an argument, or a shelter, but who feel that they cannot take a public stand on the matter for fear of alienating clients.

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Administration eines Apache Servers


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