Theft of Tax Data May Help U.S. Fight Tax Evasion

The next step in the IRS fight against offshore tax evasion may lead to the government’s use of stolen data. Tax data thefts at HSBC in Switzerland and other offshore banks are leading more whistleblowers to come forward to U.S. tax authorities, Kevin Downing, a top Department of Justice prosecutor said on March 5, 2010.

Switzerland will ask Parliament to turn a UBS deal with the U.S. (which provided for disclosure of 4,450 accounts and got UBS off the hook in a John Doe Summons case) into binding law. That would plug a legal hole that is stopping Berne from honoring the agreement. Our readers may recall that UBS and the Swiss government agreed in August of 2009 to disclose 4,450 secret accounts belonging to U.S. citizens. The settlement, however, hit a stumbling block after a Swiss court ruled in January of this year that such a transfer of data would breach existing Swiss law.

Los Angeles Tax Attorneys at Holtz, Slavett & Drabkin represent numerous taxpayers in the IRS Offshore Voluntary Disclosure Program.  After the initial information is submitted to the IRS Criminal Investigation Division, a letter is sent from IRS CID stating that the taxpayer has been preliminarily accepted.  The letter further advises that the case will be forwarded for [...]

The January 22nd decision casts doubt on whether Switzerland could hand over the accounts of people who did not give proper documentation, but did not act fraudulently. Nevertheless, U.S. tax authorities said they expect the Swiss to honor the terms of that deal. The Swiss cabinet is supposed to discuss this week how to ensure the implementation of the Swiss-U.S. tax agreement following the court’s decision, it said in a statement. UBS said it had taken notice of the court’s decision but did not comment further.

After declaring the 2009 Offshore Voluntary Disclosure Program a success, the IRS is poised to continue its enforcement of the offshore tax accounts, complex business entities, and tax evaders in 2010.

IRS Calls Offshore Voluntary Disclosure Program a Success. What if You Did Not Participate in the Program?

IRS Commissioner Doug Shulman warned that there will be no new deal regarding undisclosed offshore income once an amnesty deadline expires on October 15th.

Another client of UBS AG pleads guilty to filing a federal income tax return. The deadline for IRS Voluntary Disclosure of foreign financial accounts expires on October 15, 2009.

Over the past 5 months, the IRS has issued 52 answers to frequently asked questions regarding the IRS’ Offshore Voluntary Disclosure Program.  The questions and answers provide valuable guidance into the offshore voluntary disclosure program and should be reviewed prior to making a voluntary disclosure. 
Taxpayers have until October 15th to make a voluntary disclosure of foreign [...]

IRS Extends Deadline for Offshore Accounts Amnesty Program until October 15, 2009