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Press Releases

June 30, 2009

OTS 09-036 – OCC and OTS Release Mortgage Metrics Report for First Quarter 2009

Joint Release

Office of the Comptroller of the Currency
Office of Thrift Supervision

For Immediate Release
June 30, 2009


WASHINGTON — Delinquencies and foreclosures on first-lien mortgages continued to increase during the first quarter of this year, but loan modifications also increased and the trend continued toward more sustainable modifications with lower monthly payments, according to a report issued today by the Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS).

The report, based on data from loan servicing companies that manage 64 percent of all first-lien U.S. mortgages, shows:

  • The number of loan modifications significantly increased. During the quarter, servicers implemented 185,156 new loan modifications, up 55 percent from the previous quarter and 172 percent from the first quarter of 2008.
  • The proportion of payment-reducing modifications also increased. More than half of the modifications in the first quarter of 2009 resulted in lower monthly principal and interest payments, as servicers focused on achieving more sustainable mortgage payments. Modifications that reduced monthly payments by 20 percent or more jumped 19 percent from the previous quarter, to 29 percent of all modifications. By contrast, actions that resulted in increased payments constituted only 19 percent of modifications, a drop of 25 percent from the previous quarter.
  • Modifications that reduce payments have lower delinquency rates over time. Although delinquencies on modified loans increased each month following modification, delinquency rates were considerably lower for mortgages in which monthly payments were reduced. Six months after modification, only 24 percent of the mortgages that had monthly payments reduced by 20 percent or more were 60 or more days past due, compared with 54 percent of mortgages with monthly payments left unchanged, and 50 percent with higher monthly payments.
  • Seriously delinquent mortgages increased. Seriously delinquent mortgages (60 or more days past due or involving delinquent bankrupt borrowers) increased as economic pressures continued to weigh on homeowners. Prime mortgages, which represented two-thirds of all mortgages in the portfolio, had the highest percentage increase in serious delinquencies, climbing by more than 20 percent from the prior quarter to 2.9 percent of all prime mortgages.
  • Foreclosures in process increased. Foreclosures in process also increased during the quarter to 844,389, or about 2.5 percent of all serviced loans, as moratoriums on foreclosures expired during the first quarter. This increase represented a 22 percent jump from the previous quarter and a 73 percent rise from the first quarter of 2008.

The OCC and OTS continue to refine the Mortgage Metrics report each quarter. In previous quarters, the agencies added data on the performance of modified loans, and information on sustainability and changes in payments that result from modifications.

This report adds information on the types of actions taken to modify loans. It shows that servicers most often change multiple terms when modifying mortgages to achieve sustainable modifications. Capitalization of delinquent interest, fees, and advances, combined with interest rate reductions and extended maturities, were the predominant combinations during the first quarter. Interest rate and payment freezes, principal reductions, and principal deferrals were less prevalent.

Data also showed a continuing emphasis on preventing avoidable foreclosures to keep families in homes and mitigate losses, as servicers continued to implement more home retention actions (loan modifications and payment plans) than home forfeiture actions (foreclosures, short sales, and deed-in-lieu-of-foreclosure actions). Prime borrowers received about twice as many home retention actions as home forfeiture actions, while subprime borrowers received more than seven times as many.

“While I’m very concerned about the rise in delinquent mortgages and foreclosure actions, the shift in emphasis by servicers to more sustainable, payment-reducing modifications is a positive step that should show significant benefits in the coming months,” Comptroller of the Currency John C. Dugan said. “In addition, as the Administration’s Making Home Affordable program gains traction and helps offset the impact of this very difficult economic cycle, we should continue to see progress in future reports.”

“We continue to drill deeper into the mechanics of foreclosure prevention actions, thereby gaining more insight into what works,” said OTS Acting Director John E. Bowman. “This report provides a valuable roadmap for how financial institutions can best ensure that more Americans will stay in their homes.”

The report covers the performance of 34 million loans totaling more than $6 trillion in principal balances from the beginning of 2008 through the end of the first quarter of 2009.

The impact of the increase in modifications, particularly those with reduced monthly payments, will be seen only in future data. Likewise, data presented in this report do not reflect modifications made under the Administration’s Making Home Affordable program, which was announced in March and began to be implemented after the reporting period, and changes to the Hope for Homeowners program.
Attachments:

• OCC and OTS Mortgage Metrics Report, First Quarter 2009
• OCC/OTS Mortgage Metrics – Loan Level Data Collection: Field Definitions

###

MEDIA CONTACTS:

OCC Robert Garsson (202) 874-5770
OTS William Ruberry (202) 906-6677

http://www.ots.treas.gov/?p=PressReleases&ContentRecord_id=316ad3d4-1e0b-8562-eb75-4ef48e2eae8e

***

Foreclosures in process increased. Foreclosures in process also increased during the quarter to 844,389, or about 2.5 percent of all serviced loans, as moratoriums on foreclosures expired during the first quarter. This increase represented a 22 percent jump from the previous quarter and a 73 percent rise from the first quarter of 2008.

***

And from the US Department of Justice –

Office of the Attorney General

Asset Forfeiture Program

Bureau of Justice Statistics

Community Relations Service

Drug Enforcement Administration, Office of Diversion Control

Environment and Natural Resources

FOIA

Federal Bureau of Investigation

Federal Bureau of Prisons

Justice Management Division

National Drug Intelligence Center

National Institute of Justice

National Security Division

Office of the Deputy Attorney General

Office of the Inspector General

U.S. Trustee Program

UNICOR

[From — ]

http://www.usdoj.gov/05publications/05_6.html

***

(The Business of America with one third of her population in jails, prisons and institutions – after thirty years of Republican dominated conservatives)

General and Corporate Level
Annual Reports
Audits
Product-Related

REQUEST A FORM

[from – ]

http://www.unicor.gov/information/publications/

***

My note – it really does mean this –

Pursuant to Part 302 of Title 28 of the Code of Federal Regulations (CFR), entitled “Comments on UNICOR Business Operations,

” any interested person having any comment concerning the business operations of FPI may write to –

Board of Directors

Meetings

The next meeting of the FPI Board of Directors will be determined at a later date.

Contacting FPI’s Board of Directors in Writing

Pursuant to Part 302 of Title 28 of the Code of Federal Regulations (CFR), entitled “Comments on UNICOR Business Operations,” any interested person having any comment concerning the business operations of FPI may write to the Chief Operating Officer of UNICOR, or to the Chairman of the Board of Directors of UNICOR, and bring such matters to the attention of either or both officials. Section (b) provides that such requests should be sent to UNICOR’s address, 320 First Street, Washington D.C. 20534, with the notation “Attn: Comment Procedures.”

Persons may write to individual Board members directly, at their respective business addresses, as provided below:

David D. Spears, Chairman
(Represents Agriculture)
2627 KFB Plaza
Manhattan, Kansas 66503

Donald R. Elliott, Vice Chairman
(Represents Industry)
221 Penn Avenue
Suite 3000
Wilkinsburg, PA 15221

Audrey J. Roberts, Member
(Represents Retailers and Consumers)
Post Office Box 14
Martin, Tennessee 38237

Phillip J. Bell
(Represents the Secretary of Defense)
Deputy Under Secretary for Logistics and Material Readiness
3500 Defense Pentagon, Room 1E518
Wash, DC 20301-3500

Frank Gale
(Represents Labor)
National Sergeant-At-Arms, Fraternal Order of Police
2701 West 84th Avenue Suite #211
Westminster, Colorado 80031

Lee Lofthus
(Represents the Attorney General)
Assistant Attorney General for Administration
U.S. Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20530

http://www.unicor.gov/about/members_meetings/board_members/?navlocation=Board

***

Reports & Publications

red envelope Get e-mail updates when new reports are posted here
On the FBI…
Today’s FBI: Facts and Figures, 2008-2009
The FBI Strategic Plan, 2004-2009 (pdf) | html text only version
The FBI: A Centennial History, 1908-2008
Significant Guidance Documents
On terrorism…
2007 Report on Terrorism, National Counterterrorism Center (pdf)
Terrorism 2002-2005 (pdf) (html)
Terrorism 2000/2001 (pdf) (html version )
Terrorism in the United States: 1996 (pdf) | 1997 (pdf) | 1998 (pdf) | 1999 (pdf)
Country Reports on Terrorism, U.S Department of State
The FBI’s Counterterrorism Program Since September 2001 (pdf)
On cyber issues…
A Parent’s Guide to Internet Safety
Online Child Pornography/Child Sexual Exploitation Investigations
Internet Crime Reports
On white-collar crime…
2007 Mortgage Fraud Report
2006 Mortgage Fraud Report
2007 National Money Laundering Strategy (pdf)
Financial Crimes Report to the Public 2007 | 2006 (html) (pdf) | 2005 (html) (pdf)
Financial Institution Fraud and Failure Reports 2000-2001 (html) – pdf version
Financial Institution Fraud and Failure Reports: 2002 (pdf) | 2003 (pdf) | 2004 (pdf) | 2004 (html) | 2005 (pdf) | 2005 (html) | 2006-2007 (html)
Mass Marketing Fraud: Awareness and Prevention Tips
Securities Fraud Awareness and Prevention Tips
Insurance Fraud: Program Overview and Consumer Information

Organized Retail Crime Annual Report (Loss Prevention Research Council/Retail Industry Leaders Association) (pdf)

On violent crime…
Serial Murder: Multi-Disciplinary Perspectives for Investigators (July 2008): (pdf) | (html)
A Parent’s Quick Reference Card: Recognizing and Preventing Gang Involvement (pdf)
National Gang Threat Assessment 2009 (pdf) (html) | 2005 (pdf)
Crime in Schools and Colleges: A Study of Offenders and Arrestees Reported via National Incident-Based Reporting System Data (pdf) | (html)
The School Shooter: A Threat Assessment Perspective (pdf)
Workplace Violence Report (pdf)
Bank Crime Report 2008: Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | 2007: Quarter 4 | Quarter 3 | Quarter 2 | Quarter 1 | 2006 (html) (pdf) | 2005 (html) (pdf) | 2004 (html) (pdf) | 2003 (html) (pdf)
On law enforcement services…
FBI Laboratory 2007 (html) (pdf) | 2006 (html) (pdf) | 2005 (html) (pdf)
The FBI Law Enforcement Bulletin
Forensic Science Communications
Handbook of Forensic Services (pdf)
Police and Augmented Reality Technology (pdf)
Security Clearance Process for State and Local Law Enforcement (html) – pdf version
NICS 2006 Operations Report (html) (pdf)
Regional Computer Forensics Laboratory Program Annual Reports
On statistics…
Uniform Crime Reports: Crime in the United States
Uniform Crime Reports: Hate Crime Statistics
Uniform Crime Reports: Law Enforcement Officers Killed and Assaulted
NCIC Missing Person and Unidentified Person Statistics for 2008 | 2007
FBI Equal Employment Opportunity Report 1999-2004 (html) – pdf version

http://www.fbi.gov/publications.htm

***

THIS – (2007 document) shows the closest to current information available to the department and legislators – it could be why they don’t think it is much of a problem –

http://www.fbi.gov/ucr/schoolviolence/2007/schoolviolence.pdf

Crime in Schools and Colleges: A Study of Offenders and Arrestees Reported via National Incident-Based Reporting System Data (pdf)

United States Department of Justice
Federal Bureau of Investigation
Criminal Justice Information Services Division

The Nation’s need to understand crime as it occurs at schools, colleges, and universities was officially placed into law by the US Congress with the passage of the Jeanne Clery Disclosure of Campus Security Policy
and Campus Crime Statistics Act6 (Clery Act).

Prompted by the 1986 rape and murder of a 19-year-old Lehigh College student in her dorm room, the Clery Act requires universities and colleges to report crime statistics, based on Uniform Crime Reporting (UCR) definitions, to the Department of Education (ED) and to disclose crime statistics to nearly 16 million students attending any one of the Nation’s approximately 4,200 degreegranting, post-secondary institutions.7

Tremendous resources have been used to develop a myriad of federal and nonfederal studies that focus on identifying the characteristics surrounding violent crime, property crime, and/or crimes against society in schools.

The objective of such studies is to identify and measure the crime problem facing the Nation’s more than 90,000 schools and the nearly 50 million students in attendance.1

[ . . . ]

(and if you will notice what statistics they’ve used – my note)

Data from a variety of sources about crime in schools and colleges and characteristics of the people who commit these offenses provide key input in developing theories and operational applications that can help combat crime in our Nation’s schools, colleges, and universities.

Given the myriad of data available, the objective of this study is to particularly analyze data submitted to the FBI’s UCR Program by law enforcement agencies. It examines specific characteristics of offenders and arrestees who participated in criminal incidents at schools and colleges from 2000 through 2004.

Because the study dataset is not nationally representative, readers should be cautious in attempting to generalize the findings. (See the Methodology section for data caveats.)

[Etc.]

http://www.fbi.gov/ucr/schoolviolence/2007/schoolviolence.pdf

***

look for these words to find other US documents of a similar nature –

National Incident-Based Reporting System Data

****

Special studies, reports, and monographs prepared using data mined from the UCR’s large database are published each year as well. In addition to these reports, information about the National Incident-Based Reporting System (NIBRS), answers to general UCR questions, and answers to specific UCR questions are also available on this site.

Note: Most documents on this site are prepared in PDF (Portable Document Format). Selected tables are also available in Microsoft Excel format.


red envelope
Get e-mail updates when new reports are posted here


Crime in the United States

Crime in the United States (CIUS) is an annual publication in which the FBI compiles volume and rate of crime offenses for the nation, the states, and individual agencies. This report also includes arrest, clearance, and law enforcement employee data.

Hate Crime Statistics

Each year’s edition of Hate Crime Statistics presents data regarding incidents, offenses, victims, and offenders in reported crimes that were motivated in whole or in part by a bias against the victim’s perceived race, religion, ethnicity, sexual orientation, or disability.

Law Enforcement Officers Killed and Assaulted

The FBI annually compiles data concerning the felonious and accidental line-of-duty deaths and assaults of law enforcement officers and presents these statistics in Law Enforcement Officers Killed and Assaulted (LEOKA). Tabular presentations include weapons used, use of body armor, and circumstances surrounding murders and assaults of officers.

Additional UCR Publications

The UCR Handbook outlines the classification and scoring guidelines that law enforcement agencies use to report crimes to the UCR Program. In addition, it contains offense and arrest reporting forms and an explanation of how to complete them. The Handbook also provides definitions of all UCR offenses.
This publication presents supplemental UCR statistics auxiliary to those published in Crime in the United States with regard to age-specific arrest rates and race-specific arrest rates for the years 1993-2001.

National Incident-Based Reporting System

In response to law enforcement’s need for more flexible, in-depth data, the Uniform Crime Reporting Program formulated the National Incident-Based Reporting System (NIBRS). NIBRS presents comprehensive, detailed information about crime incidents to law enforcement, researchers, governmental planners, students of crime, and the general public. The South Carolina Law Enforcement Division conducted the pilot demonstration of this program in 1987. Since then, implementation of NIBRS has been commensurate with the resources, abilities, and limitations of the contributing law enforcement agencies. Although participation grows steadily, data is still not pervasive enough to make broad generalizations about crime in the United States. However, several NIBRS studies and monographs are available on this site that demonstrate the great utility of NIBRS. Data collection and submission guidelines and NIBRS Frequently Asked Questions and NIBRS Incident Specific Questions are available as well to help law enforcement agencies with the implementation of and participation in NIBRS.

Manuals

Many of these publications are in PDF (Portable Document Format). To view them you will need to have the latest version of the Adobe Acrobat Reader plug-in installed on your computer. The Reader can be downloaded at no cost from Adobe’s web site.

If you have trouble accessing any of the Uniform Crime Reports, please contact a member of the Communications Unit staff by telephone at 304-625-4995; by facsimile at 304-625-5394; or by Internet at cjis_comm@leo.gov. E-mail data requests cannot be processed unless requesters include their full name, a mailing address, and a contact telephone number.

http://www.fbi.gov/ucr/ucr.htm#cius

***

My Note –

Yes, so much more than you ever wanted to know. I understand that. But look at today’s date. Look at the date of the hate crimes report (pending) – it says 2008 – preliminary.

It is July of 2009 now.

These reports which aren’t even an accurate representation of last year’s numbers or the year before, are being used to decide everything from funding to whether there is a real problem to whether solutions which have been tried are working or making it worse.

And, maybe if our schools weren’t being built like prisons, run like prisons and subjecting huge percentages of our children to forced psychiatric medications and toxic disrespect, intolerance, hatred, cruelty, bullying, tortured exclusion rather than inclusion, shaming, disgust and lack of physical exercise – then they wouldn’t be breeding insanity there and criminal behaviors.

It’s just a thought –

– cricketdiane, 07-03-09

Happy Fourth of July – it looks like we’ve got a lot of work to do. There are a lot of things in America that are broken.

***

Get SMART-e

The former Cardwell Hospital in Stella, MissouriWhen most people think of a hospital, they picture images of a big, white building filled with bustling doctors and nurses. Clean. Efficient. Organized. Perhaps that once fit the description of the former Cardwell Hospital of Stella, Missouri. But by late 2005, the long since abandoned building was a dilapidated, ghost of a structure with a failing roof, peeling paint, and ruptured, asbestos-laden pipe insulation and floor tiles.

Time and neglect had turned a place of healing into a health hazard. By the next year, the building was gone, and that’s when the town got SMART-e.

Read more: EPA’s Sustainable Management Approaches and Revitalization Tools-electronic (SMART-e) helps communities plan for the future

http://www.epa.gov/epahome/scitech.htm

***

Congressional Testimony

TIGTA’s Congressional Testimony contains the Inspector General’s written testimony for Congressional hearings.

TIGTA’s Congressional Testimony are provided in PDF and HTML format. Documents noted as PDF require a special plugin. To obtain a free reader for this format, please visit the Adobe® web site at:
http://www.adobe.com/prodindex/acrobat/readstep.html


  • February 26, 2009 – Hearing Before the Subcommittee on Oversight Committee on Ways and Means U.S. House of Representatives
    PDF | HTML

  • June 19, 2008 – Joint hearing, Subcommittee on Oversight, Subcommittee on Social Security, Committee on Ways and Means, U.S. House of Representatives
    PDF | HTML

  • April 16, 2008 – Hearing before the Subcommittee on Financial Services and Gerneral Government Committee on Appropriations, U.S. Senate
    PDF | HTML

  • April 10, 2008 – Hearing before the U.S. Senate Committee on Finance
    PDF | HTML

  • February 12, 2008 – Hearing before the Subcommittee on Federal Workforce, Postal Service and the District of Columbia Committee on Oversight and Government Reform, U.S. House of Representatives
    PDF | HTML

  • May 9, 2007 – Hearing before the Subcommittee on Financial Services and General Government Committee on Appropriations U.S. Senate
    PDF | HTML

  • April 19, 2007 – Hearing before the Subcommittee on Government Management, Organization, and Procurement, Committee on Oversight and Government Reform, U.S. House of Representatives
    PDF | HTML

  • April 12, 2007 – Hearing before the U.S. Senate, Committee on Finance
    PDF | HTML

  • March 20, 2007 – Hearing before the U.S. House of Representatives, Committee on Ways and Means, Subcommittee on Oversight
    PDF | HTML

  • February 16, 2007 – Hearing before the U.S. House of Representatives, Committee on Budget
    PDF | HTML

  • September 26, 2006 – Hearing before the U.S. Senate, Committee on Homeland Security and Governmental Affairs, Subcommittee on Federal Financial Management, Government Information and International Security
    PDF | HTML

  • July 26, 2006 – Hearing before the U.S. Senate, Committee on Finance, Subcommittee on Taxation and IRS Oversight
    PDF | HTML

  • April 27, 2006 – Hearing before the U.S. Senate, Committee on Appropriations, Subcommittee on Transportation, Treasury, the Judiciary, Housing and Urban Development, and Related Agencies
    PDF | HTML

  • April 6, 2006 – Hearing before the U.S. House of Representatives, Committee on Ways and Means, Subcommittee on Oversight
    PDF | HTML

  • March 29, 2006 – Hearing before the U.S. House of Representatives, Committee on Appropriations, Subcommittee on Transportation, Treasury, and Housing and Urban Development, the Judiciary, District of Columbia, and Independent Agencies
    PDF | HTML

  • October 26, 2005 – Testimony to the Senate Homeland Security and Governmental Affairs Committee’s Subcommittee on Federal Financial Management, Goververnment Information, and Internal Security
    PDF | HTML

  • June 29, 2005 – Written statement before the House Ways and Means Subcommittee on Oversight
    PDF | HTML

  • May 25, 2005 – Hearing before the Senate Finance Committee
    PDF | HTML

  • May 19, 2005 – Hearing before the Joint Congressional Review of the Internal Revenue Service
    PDF | HTML

  • April 14, 2005 – Hearing before the United States Senate Committee on Finance
    PDF | HTML

  • April 07, 2005 – Hearing before the Senate Committee on Appropriations , Subcomittee on Transportation, Treasury, the Judiciary, Housing and Urban Development, and Related Agencies on the Internal Revenue Service’s Fiscal Year 2006 Budget Request
    PDF | HTML

  • July 21, 2004 – Hearing before U.S. Senate Committee on Finance. The Tax Gap
    PDF | HTML

  • July 8, 2004 – Hearing before U.S. House of Representatives Committee on Government Reform. TIGTA’s leadership on Telework
    PDF | HTML

  • March 10, 2004 – Hearing before the U.S. House of Representatives, Committee on Ways and Means, Subcommittee on Oversight, Subcommittee on Social Security
    PDF | HTML

  • May 20, 2003 – Joint Hearing before the Committees of the United States Senate and United States House of Representatives
    PDF | HTML

  • May 13, 2003 – Hearing before the U.S. House of Representatives Committee on Ways and Means Subcommittee on Oversight
    PDF | HTML

  • April 1, 2003 – Hearing before the Senate Finance Committee, United States Senate on Tax Scams & Schemes (Word doc)
    PDF | HTML

  • March 12, 2003 – Hearing before the House Committee on Appropriations, Subcommittee on the Departments of Transportation and Treasury, and Independent Agencies, United States House of Representatives
    PDF | HTML | Attachment: PDF

  • May 14, 2002 – Joint Hearing before the Committees of the United States Senate and United States House of Representatives
    PDF | HTML | Short Version: PDF | HTML

  • May 2, 2002 – Joint Hearing before the Subcommittee on Government Efficiency, Financial Management and Intergovernmental Relations and Subcommittee for Technology and Procurement Policy Committee on Government Reform U.S. House of Representatives
    PDF | HTML

  • April 15, 2002 – Hearing before the Subcommittee on Government Efficiency, Financial Management and Intergovernmental Relations, Committee on Government Reform, U.S. House of Representatives
    PDF | HTML

  • April 15, 2002 – Management and Performance Challenges Facing the Internal Revenue Service
    PDF | HTML

  • April 11, 2002 – Hearing Before the Committee on Finance, United States Senate
    PDF | HTML

  • May 8, 2001 – Joint hearing before Committees of the United States Senate and United States House of Representatives
    PDF | HTML

  • April 3, 2001 – Hearing before the Subcommittee on Oversight, Committee on Ways and Means, U.S. House of Representatives
    PDF | HTML

  • March 21, 2001 – Testimony before the House Appropriations Committee, Subcommittee on Treasury, Postal Service, and General Government
    PDF | HTML

  • May 3, 2000 – Testimony before Committees of the United States Senate and House of Representatives on Progress and Problems in Implementing the Internal Revenue Service Restructuring and Reform Act of 1998
    PDF | HTML

  • February 2, 2000 – Testimony before the Senate Finance Committee
    PDF | HTML

http://www.treas.gov/tigta/publications_congress.shtml

***

DAVID C. WILLIAMS

INSPECTOR GENERAL

TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION


Mr. Chairman, and members of the committee, I appreciate the opportunity to appear before you today to discuss illegal tax activities and their impact on the taxpaying public. I would also like to discuss some of my office’s efforts to detect these situations, and proposals for the Internal Revenue Service (IRS) to further reduce illegal tax activities.

[ . . . ]

Income tax schemes are destructive in many ways. While some of the individuals are willing participants motivated by greed, many involved are just unwitting victims who ultimately lose not only the anticipated tax benefit, but also the money they pay to the promoters of the scheme. Some of these taxpayers are elderly Americans who become victims of promoters. Individuals become participants in these schemes frequently through contact by unscrupulous promoters, falsely claiming that they have discovered legitimate, but little known, methods to avoid taxes. The “victims” subsequently learn that, once caught by the IRS, they must not only pay their entire tax liability, but they may also incur interest and penalty expenses, as well as the customary fee paid to the promoter.

It goes without saying that the proliferation of schemes aimed at providing individuals with an avenue to pay less than their fair share of taxes weighs heavily on the IRS’ ability to ensure voluntary compliance levels are at their maximum.

I believe taxpayers are more inclined to comply with the tax laws if they trust that the system is fair and structured adequately to identify and penalize those who do not play by the rules. However, increasing concerns that taxpayers doubt the effectiveness of the tax system have begun to surface.

[etc.]

http://www.treas.gov/tigta/congress/congress_04112002.htm

***

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