Most of the options for addressing individual evasion involve more information reporting and
additional enforcement. There are options that would involve fundamental changes in the law,
such as shifting from a residence to a source basis for passive income. That is, the United States
would tax this passive income earned in its borders, just as is the case for corporate and other
active income. This change involves, however, many other economic and efficiency effects that
are probably not desirable. The remainder of the proposals discussed here do not involve any
fundamental changes in the tax itself, but rather focus on administration and enforcement.
The options discussed below are drawn from many sources, including academics and
practitioners, organizations, and the Internal Revenue Service, and contained in legislative
proposals; citations to these sources are provided at this point and legislative proposals are
summarized in the next section