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Offshore Tax Loophole Helps Americans Cheat IRS, Senate Says

  • Registering shell companies with IRS is ‘shockingly easy’
  • Probe triggered by criminal case against billionaire Brockman

Rich Americans are hiding “vast amounts of income” from the Internal Revenue Service by exploiting a “deeply troubling” loophole in a 12-year-old US law designed to crack down on offshore tax evasion, according to a Senate Finance Committee report. 

The committee, led by Oregon Democrat Ron Wyden, focused on the loophole after investigating Robert Brockman, the billionaire software developer indicted in the largest tax-evasion case against an individual in US history. Brockman, who died this month at 81 before his case came to trial, allegedly used offshore trusts and corporations to hide $2 billion in income from the IRS.