FROM THE OFFICE OF PUBLIC AFFAIRS

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Good Morning.  Thank you for joining us. I would like to thank the Federation of Tax Administrators and the States for being here today.  Many of you traveled great distances to do so.

We are here today to announce an important new partnership between the Treasury Department, the Internal Revenue Service and the States in the fight against abusive tax scams and abusive tax avoidance transactions.  This partnership will aid the federal government and the states in their efforts to ensure that all taxpayers pay their fair share, protecting the integrity of our tax systems.

In the past few years, the Treasury Department has worked closely with the IRS to ensure that the IRS has the necessary information and tools to fully and fairly enforce the tax laws and to combat abusive tax scams and transactions.  By joining forces with the states, we take another important step in those efforts.

Through this partnership, the IRS and participating states will exchange information regarding abusive tax avoidance transactions, expanding the web of information that has given the IRS traction in its effort to stem the spread of abusive tax avoidance transactions.  Working together, the IRS and state tax authorities will significantly reduce the opportunities for taxpayers and promoters to avoid detection.

This partnership will also allow the states and the federal government to make better use of our collective resources.  We can be more efficient with the resources we have, reducing duplicative efforts and identifying more promoters and more taxpayers who have participated in abusive tax avoidance transactions. 

Sharing resources will also enhance our education and outreach efforts.  One of the best ways to combat abusive tax scams and transactions is to prevent taxpayers from engaging in them in the first place.  By better educating taxpayers about the risks of abusive scams and transactions, we can prevent taxpayers from participating in them and deter promoters from selling them.  The federal/state partnership means our education and outreach efforts will reach an even larger audience of taxpayers and potential promoters.

We believe the fruits of these efforts will restore faith in the tax system.  When some taxpayers game the tax system, the honest taxpayers who foot the bill lose confidence in the tax system and in the government.  The partnership we are announcing today is aimed at restoring that faith by ensuring that everyone pays the taxes they owe.

I would like to thank everyone who worked so hard to make this partnership a reality.  We look forward to working with you in the future.   

Now, I would like to introduce IRS Commissioner Everson.

Related Documents:

• IR2003-111 IRS and States Announce Partnership to Target Abusive Tax Avoidance Transactions
• Comments of IRS Commissioner Mark W. Everson
• Comments of Dale F. Hart Commissioner of Small Business/Self-Employed Division
• Statemetn of State Tax Officials
• Text of Abusive Tax Avoidance Transation (ATAT) Memorandum of Agreement