Tax Evasion Defense Attorneys See Flood of U.S. Taxpayers After UBS Settlement Releases More Names
As Fort Myers tax evasion criminal defense lawyers, we have watched the federal government’s lawsuit against Swiss bank UBS very closely. The federal government sued UBS, one of the largest Swiss banks in a country known for its banking privacy laws, after reaching a settlement in a related criminal case in which UBS admitted to helping Americans evade their taxes. In the newer suit, the IRS sought the names of thousands of U.S. taxpayers with accounts at UBS, in order to ferret out possible tax crimes. As we wrote earlier this week, that case has finally settled -- and this week, the parties said UBS will disclosed 4,450 names of American taxpayers as part of the settlement.
The 4,450 names are less than 10% of the 52,000 names originally sought by the IRS. However, the exact criteria for deciding which names will be disclosed have not yet been released. And observers expect the federal government to continue its aggressive efforts to stamp out tax fraud by prosecuting all of these taxpayers, if it believes have committed tax crimes.
In response, Bloomberg News reported Aug. 21, American taxpayers with UBS accounts are rushing to disclose the existence of their accounts to the federal government before the government can come to them. For five months, the IRS has offered taxpayers a kind of amnesty through a voluntary disclosure program, in which taxpayers admit the existence of these accounts in exchange for lighter tax penalties and no recommendation for criminal prosecution. Taxpayers must still pay taxes owed, interest and 20% of the value of the account at its highest value -- but by doing so, they avoid facing up to five years in prison and 50% of the value of the account for every year they failed to disclose the account.
Tax evasion criminal defense lawyers in Miami and around the world report a flood of calls from taxpayers who want to take advantage of this program. In fact, Bloomberg said, attorneys reported hearing from many more clients after the settlement was announced. That’s on top of the already-record number of people taking advantage of the voluntary disclosure program. The IRS said it has about 500 people a week entering the program -- up from fewer than 100 in all of 2008. They may also feel a special urgency because the program is slated to end on Sept. 23 -- about a month. But according to one tax lawyer interviewed for the article, calls from clients increased substantially after the settlement was announced, perhaps suggesting that the 4,450 names pushed some fence-sitting taxpayers into action. Another attorney said anyone who doesn’t use the voluntary disclosure program is “taking a major gamble” that their name won’t be on that list.
Our West Palm Beach tax fraud criminal defense attorneys agree. Without knowing what criteria UBS will use to choose those names, taxpayers have no idea whether they will be investigated. As we’ve written before, UBS has admitted to actually advising its clients to break U.S. tax laws and helping them to do it, which suggests that even people with no bad intentions may have unwittingly committed tax crimes. If there is even a chance of being named as a tax evader, we believe it’s much better to step forth and pay the penalty than to face the possibility of prison. Previous news reports said the IRS has been lenient with taxpayers who never intended to hide their income, but made an honest mistake. By contrast, the agency is not kind to acknowledged tax evaders. In fact, a former UBS employee who cooperated with the IRS recently was sentenced to 40 months (three years and four months) in prison.
Balliro, Galasso, Leskovich & Seltzer represents taxpayers seeking to voluntarily disclose their overseas accounts. Our Naples tax evasion criminal defense attorneys are experienced in international law and understand all of the criteria necessary for a successful voluntary disclosure. We can counsel you on whether you qualify; what you must disclose; and the potential criminal, professional and taxation consequences. Perhaps more importantly, our Punta Gorda tax crime defense lawyers can represent you at the in-person interview that the IRS is now demanding from many voluntary disclosers. Our goal is to help our clients minimize any damage to their finances and their lives from this potentially serious brush with the law.
If you have an overseas bank account -- with UBS or another bank -- and you believe you may benefit from voluntarily disclosing it, BGL&S can help. For a free consultation, where you can learn more, please call us toll-free from anywhere in Florida at 1-866-ARRESTED or contact us through our Web site.
