As a result of prior investigations, the Internal Revenue Service (IRS) and the United States Department of Justice (DOJ) continue their investigations into UBS because of the bank’s involvement in helping U.S. taxpayers maintain undisclosed foreign bank accounts in Switzerland.
Private cantonal banks, once renowned for their secrecy, are also being investigated along with other Swiss banks. The Swiss and the U.S. governments are working together to uncover undisclosed offshore accounts that are held by United States taxpayers. For U.S. taxpayers with undisclosed offshore accounts now is the time to report these foreign accounts and assets to the IRS.
Government authorities recently announced the 2012 Offshore Voluntary Disclosure Initiative to prompt U.S. taxpayers with undisclosed offshore accounts to come into compliance.
Terms of the 2012 IRS Amnesty program highlight:
- A 27.5 percent penalty of the undisclosed offshore accounts based on the highest total account balance over an eight-year period of each account.
- U.S. taxpayers must pay back interest and taxes on any unreported income for up to eight years, as well as delinquency and/or accuracy related penalties.
- Participants with undisclosed offshore accounts must file all amended and original tax returns, as well as include payments for taxes, interest, and accuracy related penalties.
Taxpayers who successfully complete the 2012 IRS Offshore Voluntary Disclosure Program will avoid severe civil penalties and criminal investigations.
If you have been contacted by the IRS regarding international reporting and/or tax liability issues, contact the international lawyers of Thorn Law Group today for assistance representing and defending your international tax matters.