UBS Offshore Accounts to Be Protected by Swiss Government from IRS Tax Evasion Investigation
The Swiss government has threatened to seize UBS Swiss bank account records that belong to U.S. citizens rather than allow that information to fall into the hands of the Internal Revenue Service (IRS). The Swiss made the statement in a court filing in the UBS summons lawsuit pending in District Court in Miami, Florida.
Does this mean that U.S. taxpayers who have offshore accounts, and who committed tax fraud or tax evasion can sleep more easily at night? Maybe. The Swiss and the IRS are engaged in a high stakes poker game. No one knows how it is going to turn out. Even if the IRS doesn’t get the information in this so-called John Doe summons case there are numerous other ways it can come to the attention of the IRS. For example, most tax fraud comes to light when an unhappy spouse or employee turns informant. Last year the story broke of how a bank employee at LGT in Lichtenstein was bribed by German officials to turn over secret offshore bank account records, which the Germans in turn handed over to the IRS.
U.S. citizens and residents who have Swiss bank accounts at UBS have a lot at stake. Even if they paid the bulk of their taxes they could be liable for Foreign Bank Account Report (FBAR) penalties equal to 50% of the balance in their account.
If you have an offshore bank account at UBS or anywhere else in the world, now is the time to consult a tax lawyer to understand your options, and see if the IRS tax amnesty makes sense for you. If you would like a consultation with the tax litigation attorneys at Brager Tax Law Group, A P.C. please call us.
