On March 22, Michael Danilack (LL.M. ‘90), deputy commissioner of the Internal Revenue Service’s Large Business and International Division, delivered the 11th Annual NYU/KPMG Tax Lecture.
In “Increasing Transparency in the U.S. Self-Assessment Tax System: A Paradigm Shift”, Danilack focused on increased disclosure by taxpayers to the IRS on their tax returns, especially concerning off-shore bank accounts and uncertain tax positions. He explained that the U.S. government has the right to share its taxpayers’ return information with foreign governments without notifying the individual or corporation. The audience took issue with that position and debated the intentions of information sharing. He said the U.S. government only deals with governments that intend to use the information for legitimate auditing purposes.
‘‘We’re sensitive to the argument that taxpayers should know when their information is being shared,’’ Danilack said. He explained that the IRS, as a rule, notifies a taxpayer when another government asks for information. But, if the foreign government specifically asks that the IRS not notify the taxpayer under investigation, it complies.
The event, presented by the Graduate Tax Program and KPMG Tax Practice was moderated by Professor H. David Rosenbloom, director of the International Tax Program. Additional speakers were: Wayne Perry Professor of Taxation Daniel Shaviro; Adjunct Professor Bryan Skarlatos; Shearman & Sterling’s Peter Blessing, who is also chair of New York State Bar Association's Tax Section; Diana Wollman of Sullivan & Cromwell; and KPMG’s Mark Bielstein, Michael Dolan, Laurie Hatten-Boyd, and Sharon Katz-Pearlman.
Posted April 8, 2011