Last week I blogged that UBS and the IRS had announced a preliminary settlement to the lawsuit seeking the names of 52,000 U.S. persons with Swiss bank accounts at UBS who the IRS suspects of tax evasion, and failing to file foreign bank account reports (FBARs). The failure to file a TDF 90-22.1 a/k/a an FBAR can result in a penalty of 50% of the balance in the offshore bank account. UBS and the IRS were expected to file final settlement papers with Miami Federal District Court Judge Gold by Friday August 7th. However, on Friday the parties told Judge Gold that they needed until Wednesday, Aug. 12th to finalize a settlement which most tax attorneys including myself believe would involve UBS turning over the names of additional Swiss bank account owners.
Once a list is turned over an offshore bank account owner whose name is on the list would no longer qualify for the IRS tax amnesty program, and would potentially be subject to both civil and criminal tax fraud charges, as well as the 50% FBAR penalty.
Time may be of the essence for holders of UBS Swiss bank accounts. We strongly recommend consulting immediately with a knowledgeable tax lawyer to find out more about the terms of the IRS voluntary disclosure program.
If you have questions the ex-IRS tax attorneys at Brager Tax Law Group, A P.C. are available for a consultation.