IRS to Go After US-held Swiss Bank Account Records
By allowing the IRS to serve Zurich, Switzerland-based UBS AG with a "John Doe" summons, U.S. District Court Judge Joan A. Lenard enabled the IRS to request information on possible tax fraud violators whose identities are unknown. The summons will require UBS to produce records identifying U.S. taxpayers with accounts at UBS in Switzerland who elected to have their accounts remain hidden from the IRS.
According to a court statement by a former UBS banker, the Swiss bank holds about $20 billion in "undeclared" accounts for U.S. taxpayers.
Under the law, all U.S. taxpayers are required to report to the IRS all financial accounts in a foreign country if the total value of the accounts exceeds $10,000 at any time during the calendar year. Willfully failing to report such funds can result in a penalty of up to 50 percent of the amount in the account at the time of the violation.
Also See:
Tax Gap of Unpaid Taxes Runs $350 Billion a Year
IRS Draws Up Plans to Address the Tax Gap
Who Pays the Most Income Tax?
Comments
It’s about time! Any accounts in offshore banks should be scrutinized to catch these tax-dodgers!
I’m continually amazed at the unmitigated imperialistic gall of the American government, demanding that foreign countries and their citizens enforce American law. Providing that kind of information is ILLEGAL in Switzerland.
I can’t wait until the Netherlands passes legislation demanding that the US allow citizens of the Netherlands to smoke pot when they’re in the US, because it’s legal to do so back home. I’ll just bet the Bush Administration and the previous commenter would be very understanding of foreign law being enforced here.
Hey! Fair is fair!