IRS Extends Deadline for Voluntary Disclosure of Unreported Overseas Income in UBS Case
Our Fort Myers tax evasion criminal defense attorneys were surprised and pleased to see that the Internal Revenue Service has extended the deadline for its voluntary disclosure program. According to the New York Times, the agency announced Sept. 21 that it will extend the program, scheduled to end Sept. 23, an additional 22 days to Oct. 15. The move comes after taxpayers have flooded the agency with voluntary disclosures, which allow taxpayers who failed to report income from overseas accounts to avoid criminal prosecution and punishing fines. These taxpayers must still pay back taxes and penalties of five to 20 percent of the unreported income, but by coming forward, they can avoid much higher fines, a criminal record and potential prison time.
The voluntary disclosure program grows out of an IRS criminal investigation of the Swiss bank UBS. A former employee revealed that the bank had taken active steps to help Americans avoid reporting income from UBS accounts, including physically carrying money in luggage and setting up elaborate shell corporations. As part of the settlement of those charges, UBS agreed to release names of some taxpayers who had not reported the income from their accounts to the IRS; after the IRS sued, it revealed even more names. The agency publicly promised that it would be aggressive in its efforts to find and prosecute tax evasion -- but it also instituted its voluntary disclosure program, allowing taxpayers to avoid harsh penalties by coming forward.
By all accounts, the voluntary disclosure program is a success. According to the Times, 3,000 people (including people without UBS accounts) have participated so far this year, up dramatically from a total of 80 participants in 2008. The deadline’s extension is one sign of the program’s success, and as West Palm Beach tax evasion defense lawyers, we strongly encourage any taxpayers who could benefit from the program to talk to us about doing so. In addition to helping clients with the necessary paperwork for the disclosure, our Sarasota tax evasion criminal defense lawyers aggressively negotiate for fair and lenient penalties; represent clients in any in-person interview the IRS requests; and guide clients about what must be disclosed now and in the future. However, because the extended deadline is so soon, taxpayers must move very quickly to take advantage of the program.
Balliro, Galasso, Leskovich & Seltzer is a criminal defense law firm with seven offices throughout South Florida. As Miami criminal defense attorneys, we have substantial experience stopping criminal prosecutions before they can start, helping our clients resolve problems at the administrative level. All of our attorneys are former public defenders or prosecutors, so we understand how to negotiate with government bureaucracies, even in sticky situations. And because we are committed to defending the whole case, our representation includes advice and defense on related matters, such as the loss of a professional license, tax consequences or keeping embarrassing information private.
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