UBS Reaches Deal in Tax Evasion Lawsuit to Reveal Names of American Accountholders to IRS
In a last-minute deal that stopped hearings set to begin today, the Internal Revenue Service and Swiss bank UBS have reached an agreement, Bloomberg News reported July 31. The agreement may end a lawsuit the IRS filed against UBS to compel it to reveal names of 52,000 Americans with accounts there. No details were provided, but the settlement will be submitted in writing this Friday, August 7, and our Miami-Dade tax evasion defense attorneys will be watching closely.
The government sued to identify Americans who have been avoiding taxes by hiding assets in UBS accounts, something UBS has already admitted to helping facilitate. The lawsuit was filed shortly after UBS deferred prosecution for helping Americans evade their taxes, paying $780 million and revealing 250 names. The IRS wants 52,000 more names, which UBS and the Swiss government contend would violate Swiss law. The lawsuit seeks to establish whether the UBS deferred-prosecution agreement compels it to hand over the larger list of names. Secretary of State Hillary Clinton is meeting today with the Swiss Foreign Minister, Micheline Calmy-Rey, to discuss the situation.
Since UBS identified the original 250 names, at least three American UBS clients have been prosecuted for tax evasion. In anticipation of learning the names of thousands more, the IRS is offering a voluntary amnesty program for all U.S. taxpayers who have overseas assets they have not declared on their taxes, including assets at banks other than UBS. Under the amnesty program, taxpayers come forward to reveal their assets -- frequently with the help of a West Palm Beach tax evasion defense lawyer -- in exchange for lighter penalties. Participating taxpayers must still pay back taxes and penalties, but they face much smaller fines and no possibility of prison time. By contrast, if they fail to come forward, these people face up to five years in prison and a fine of $100,000 or 50% of the account’s value -- for each year they failed to declare assets.
According to another article by Bloomberg, taxpayers are rushing to take advantage of this program before its Sept. 23 deadline. The IRS said it received 400 voluntary disclosure applications in one week in July, which is four times the number of voluntary disclosures in all of 2008. To make the process more efficient, it has released a list of information it would like from disclosing taxpayers, including account numbers and information on any audits. As we noted last week, they are also summoning many taxpayers for in-person interviews that may be an attempt to find out who is advertising these accounts.
Taxpayers may have a Naples tax evasion criminal defense attorney represent them throughout this process, and Balliro, Galasso, Leskovich & Seltzer recommends it highly. BGL&S represents taxpayers throughout Florida who are ready to make these voluntary disclosures and avoid serious penalties. We can help taxpayers establish eligibility and meet the basic requirements; represent them during any difficult in-person interview or audit; and make sure their rights are respected during the process. As the Bloomberg article notes, penalties are generally lower for families of Jewish people who fled the Holocaust; they should also be lower for those who genuinely thought they didn’t have to report their assets. Our Fort Lauderdale tax evasion criminal defense lawyers will ensure that the IRS understands and respects circumstances like these.
With seven offices in South Florida, BGL&S protects people throughout Florida who are facing criminal or administrative investigations and prosecutions. Our team of aggressive defense lawyers is made up of former public defenders and prosecutors, so we understand how the system works. We will use that understanding to get you the best possible outcome to your case, whether that means dropped charges, a plea deal or aggressive representation in a court of law. Thanks to our experience, we understand that legal trouble happens at all times of day, not just during business hours. That’s why we are available to clients and potential clients at all times -- 24 hours a day, seven days a week.
If you’re considering a voluntary disclosure to the IRS and you need help protecting yourself, you should call BGL&S as soon as possible. For a free, confidential consultation, you can reach us from anywhere in Florida at 1-866-ARRESTED or contact us online.
