Igor S. Drabkin, J.D., Former IRS Attorney
A U.S. client of UBS AG pleaded guilty on April 12, 2010, to failing to file FBAR forms with respect to income diverted to offshore Swiss accounts valued at $1.3 million. The case is the most recent of a slew of actions the government has brought against former clients of Swiss banking giant UBS. The individuals are accused of stashing assets abroad to escape the eyes of U.S. tax authorities. UBS client Harry Abrahamsen pleaded guilty in federal court in New Jersey to failing to file a “Report of Foreign Bank and Financial Accounts.” Abrahamsen admitted he failed to report his account and a second one in his daughter’s name. He had transferred funds through a shell Panamanian company to hide funds from the Internal Revenue Service, according to the government. The timing of the plea seems to indicate that the IRS wants to draw attention to taxpayers’ obligation to report assets held offshore before the April 15 tax-filing deadline.