In 2006, the I.R.S. created the International Collection program (“International Collection”), whereby collections officers are primarily responsible for collection of all delinquent taxes and tax returns of taxpayers located outside the U.S., but subject to the United States tax and reporting requirements. Since its inception, International Collection has undergone certain changes with the intention of developing a well-structured, long-term strategy to curb international tax noncompliance.
Significant emphasis now is placed on international tax compliance. The I.R.S. is concentrating on collecting delinquent payments, and through the three voluntary programs alone, it collected $6.5 billion from 45,000 participating taxpayers.
There are four types of international taxpayers that are of interest to the I.R.S.
- U.S. individual taxpayers and resident aliens working, living, or doing business abroad;
- U.S. corporations doing business abroad;
- Nonresident aliens working or doing business in the United States; and
- Foreign corporations doing business in the United States