By Patricia Cohen, NYTimes.com
What would be more likely to get you to report the whole truth and nothing but the truth on your tax returns? A notice that says “Don’t cheat” or one that says “Don’t be a cheater”?
As it turns out the personalized injunction works better than the more generalized abstract principle — though neither works as well as the plain, old-fashioned threat of an audit.
With April 15 looming in the not-so-distant future, that is just one of the lessons that has emerged from the recent explosion of research into tax cheating.
See complete article, If the I.R.S. Is Watching You, You’ll Pay Up
In related news, Swiss Bank Julius Baer to Pay $547 Million to End US Tax Probe
Julius Baer has reached an agreement in principle with U.S. authorities to settle an investigation into allegations it helped wealthy American clients evade taxes, potentially drawing a line under the Swiss bank’s biggest legal issue.
Switzerland’s third largest listed bank said it had set aside nearly $200 million in additional provisions for the settlement, bringing the total amount earmarked for potential penalties to $547.25 million, which the bank will charge to its 2015 full-year results.