Bloomberg BNA quoted Peter A. Barnes regarding the new tax laws requiring LLCs to disclose owner information to the IRS. The article discusses the role peer pressure played in the creation of these new laws. For the complete article, please visit Bloomberg BNA's website (subscription required).
Excerpt taken from the article.
Peter Barnes, a professor at Duke University School of Law and of counsel at Caplin & Drysdale Chartered, said March 31 that Treasury's action is fully consistent with a decade-long effort in the U.S. and globally to identify the true owners behind investments. But, he added, the decision puts more pressure on the U.S. to ensure that it can identify the true owners of all U.S. legal entities.
"As Bob Stack and other officials have noted many times, it is awkward for the U.S. to demand more information from other countries than we gather or are willing to share with those same countries," Barnes told Bloomberg BNA.
Barnes said "while the new reporting requirements are useful, they are more likely to allow the U.S. to help other countries collect tax than to raise new tax revenue for the U.S.."