/biz/ - Business & Finance

A US business can dodge tax via off-shore tax shelters etc but why can't an individual do the same?

USC 26 § 861(a)(3)(c)(ii) & USC 26 § 862(a)(3) outline tax obligations of individuals and explain that no matter where income is earned, it must be reported to the IRS.

If the income is earned overseas and tax is paid on it, tax credits are claimed in IRS taxes to offset potential double-taxation.

But when a business is filtering profits to a tax shelter, why aren't those profits reported to the IRS and taxed at the US tax rate, with credit given for the amount of tax they pay overseas? i.e. if a company earns $1 and pays no tax on it, that $1 should be reported to the IRS and taxed at whatever rate business is taxed at. No tax credit can be claimed as no tax was paid.

The main issue is US residents owe taxes on worldwide income - so why don't US businesses? Or are these 'American businesses' not actually 'American'?

The whole ordeal fascinates and pisses me off.

So what does /biz/ study or did studies in ?

Tax Law guy here