How do governments track and enforce international taxation?

Governments track and enforce international taxation primarily through the use of treaties, regulations, and laws. These treaties, regulations, and laws allow governments to collect taxes from foreign citizens and companies that transact business within their borders. In California, two of the most important laws related to international taxation are the Bank Secrecy Act (BSA) and the Internal Revenue Code (IRC). The Bank Secrecy Act requires foreign banks and other financial institutions to report information about foreign-owned accounts, deposits, and transactions to the US government. This reporting helps the IRS identify and assess the tax owed on income that was earned abroad but remitted to the US. The Internal Revenue Code provides governments with the authority to tax income earned by companies or individuals outside of their borders. The US government has exchange agreements with over 80 countries and territories, allowing them to exchange information about taxpayers and their income sources. This allows the US government to identify and assess the tax due for foreign earnings. The IRS also uses a variety of enforcement methods to identify and assess unpaid tax liabilities. This includes undercover operations, document requests, interviews, and financial audits. These types of enforcement activities help the IRS ensure that taxpayers comply with international taxation rules. Overall, international taxation is a complex area that requires governments to track, assess, and enforce taxation obligations. By using a combination of treaties, laws, and regulations, governments are able to accurately track foreign income, assess the taxes owed, and ensure that foreign taxpayers comply with the rules.

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How do governments track and enforce international taxation?

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