Cash-Strapped IRS Slashes Evasion Penalty

By Harry Kimball,  Newser Staff
Posted Mar 26, 2009 2:33 PM CDT
IRS Commissioner Douglas Shulman.   (AP Photo)
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(Newser) – In an effort to increase revenue, the Internal Revenue Service is relaxing penalties on offshore tax evaders in hopes they will come forward, the New York Times reports. A penalty that was 50% of offshore holdings will drop as low as 5%. “They need to get money back into the system,” an insider said, “so they needed to sweeten the deal.”