On December 30, 2014, the Internal Revenue Service updated its list of Foreign Financial Institutions or Facilitators, whose clients meet criteria for a 50% Penalty in the Offshore Voluntary Disclosure Program (OVDP). The list now includes:
1) UBS AG
2) Credit Suisse AG, Credit Suisse Fides, and Clariden Leu Ltd.
3) Wegelin & Co.
4) Liechtensteinische Landesbank AG
5) Zurcher Kantonalbank
6) Swisspartners Investment Network AG, swisspartners Wealth Management AG, swisspartners Insurance Company SPC Ltd., and swisspartners Versicherung AG
7) CIBC FirstCaribbean International Bank Limited, its predecessors, subsidiaries, and affiliates
8) Stanford International Bank, Ltd., Stanford Group Company, and Stanford Trust Company, Ltd.
9) The Hong Kong and Shanghai Banking Corporation Limited in India (HSBC India)
10) The Bank of N.T. Butterfield & Son Limited (also known as Butterfield Bank and Bank of Butterfield), its predecessors, subsidiaries, and affiliates
11) Sovereign Management & Legal, Ltd., its predecessors, subsidiaries, and affiliates (effective 12/19/14)
12) Bank Leumi le-Israel B.M., The Bank Leumi le-Israel Trust Company Ltd, Bank Leumi (Luxembourg) S.A., Leumi Private Bank S.A., and Bank Leumi USA (effective 12/22/14)
As we previously blogged, the revised OVDP rules provided for a 50% miscellaneous offshore penalty (50% of the highest account balance) for those taxpayers, who had account at Foreign Financial Institutions or other facilitators, which at the time of submitting the preclearance letter by the taxpayers, were under investigation by the IRS or the Department of Justice or were cooperating with the IRS or the Department of Justice in connection with accounts that are beneficially owned by U.S. persons.