More Offshore Banks Reveal Account Data, As IRS Amnesty For Many Involves 50% Penalty

Recently, a number of new Swiss Banks have agreed to deferred prosecution agreements with the U.S. government, in exchange paying fines and disclosing non-tax compliant U.S. taxpayers.

Additionally, 25 banks are subject to a 50% OVDP penalty for taxpayers who had accounts in these banks. As a final matter, the IRS is warning about quiet disclosures, i.e. filing amended tax returns and reporting the foreign accounts/income hoping not to be audited by the IRS. The IRS position is that these foreign accounts will not be in tax compliance under a “quiet filing” which subjects the taxpayer to both criminal penalties and exorbitant civil penalties (i.e. in the case of a FLA taxpayer the civil penalty was 150% of the account balance, which penalty was upheld at trial.)

For U.S. taxpayers in this predicament there is a an alternative to “quiet filings” and voluntary disclosures under the OVDP. After many years of research, I have devised a trade secret tax strategy (successfully used for clients) which includes an amended tax return(s), waiver of penalties request for a “reasonable cause exception” for both the FBAR issue (separate tax filing Fincen Form 114, due 6/30) and the Form 1040 tax return (to report the income from the foreign account and disclose the account on Schedule B/Part 3).

If you, or your clients face these serious tax issues, please contact me and I will provide a free consultation and let you know if I may be of help in bringing the taxpayer back into compliance without imposition of civil and criminal penalties. Please send me an e-mail on a “no-names basis” describing the taxpayer circumstances and I will respond.

1. Offshore Banks Reveal Account Data, As IRS Amnesty For Many Involves 50% Penalty

2. Baron David de Rothschild’s Bank Fined Over U.S. Tax Dodging

3. Julius Baer to pay $350m for US tax evasion

4. Four Banks Reach Resolutions Under Department of Justice Swiss Bank Program

The four banks are:
– Société Générale Private Banking (Lugano-Svizzera)
– MediBank AG
– LBBW (Schweiz) AG
– Scobag Privatbank AG

“Today’s agreements reflect the Tax Division’s continued progress towards reaching appropriate resolutions with the banks that self-reported and voluntarily entered the Swiss Bank Program,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division. “The department is currently investigating accountholders, bank employees, and other facilitators and institutions based on information supplied by various sources, including the banks participating in this Program. Our message is clear – there is no safe haven.”


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