Several Swiss newspapers have been quoted as saying that between 4,500 and 5,000 names will be disclosed to the IRS. However, there are other accounts that the number of names released may be closer to 10,000.
The importance of this case cannot be understated. Up until a few years ago, it was unfathomable that Swiss bank account information would be disclosed to anyone, let alone the IRS. The apparent success that the IRS has met with cracking Swiss banking secrecy laws is unbelievable. It has been reported that close to $200 billion in investor funds have left UBS since the start of the IRS case.
The Swiss government obtains about 10% of its Gross National Product from UBS. This is highlighted by the fact that there have been reports that Secretary of the Treasury Timothy Geithner decided not to pursue full disclosure of the 52,000 U.S. taxpayers for fear of pushing UBS over the edge and starting a second global financial disaster.
The IRS has been flooded with individuals who seek to voluntarily disclose and avoid jail time. Interestingly, a British attorney is trying to locate UBS clients who would join in a class action suit against UBS for breach of fiduciary duty. It is estimated that the total amount of fines to be paid by U.S. taxpayers who failed to disclose off-shore accounts will be around $4 billion.
Lastly, the U.S. crackdown on undisclosed off-shore accounts goes beyond Swiss bank accounts. The IRS is now looking globally and in particular is focusing on Hong Kong. Although there are many legitimate Hong Kong companies, the IRS believes there are a large number of illegitimate companies set up solely for tax evasion.
If you would like to disclose to the IRS prior to the end of their current Tax Amnesty Program, which is September 23, do it right, and contact us immediately.
To find out more about Jeanne's practice, Click Here. If you wish to discuss these issues in more detail, please contact Jeanne at jkerkstra@chuhak.com or 312-855-4337.
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Jeanne M. Kerkstra, Esq., CPA
Chuhak & Tecson, P.C.
This material is intended for educational purposes only. The conclusions expressed are those of the author and do not necessarily reflect the views of Chuhak & Tecson, P.C. While this material is based on information believed to be reliable, no warranty is given as to its accuracy or completeness. Concepts expressed are current as of the date appearing in this material only and are subject to change without notice.
TAX ADVICE NOTICE: The Internal Revenue Service now requires specific formalities before written tax advice can be used to avoid penalties. This communication does not meet such requirements. You cannot contend that IRS penalties do not apply by reason of this communication.
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