IRS gets help from Swiss in uncovering secret bank accounts

The Justice Department and Swiss banking giant UBS AG have announced that they have reached an agreement on the alleged 52,00 U.S. account holders with secret accounts at the bank. The U.S. and Swiss governments are expected to provide the details of the out-of-court agreement in the near future. The IRS has alleged that as many as 53,000 U.S. taxpayers have violate U.S. tax laws by failing to properly disclose accounts at UBS AG.

The agreement reached between the IRS and UBS AG came shortly before an August 17 hearing on the IRS�s request that a U.S. district court enforce a John Doe summons against UBS AG. UBS, with the backing of the Swiss government, had refused to disclose the identities of the account holders.

Neither the IRS nor UBS AG have provided any specific details on the agreement, or have indicated how many, if any, account holders will be identified.

This past February, UBS AG agreed to pay $780 million to settle charges that it assisted wealthy U.S. taxpayers to evade taxes on nearly $20 billion hidden in alleged offshore accounts. Shortly after, the Justice Department filed a civil lawsuit seeking to force the Swiss bank to disclose an alleged 52,000 account holders.

Meanwhile, the IRS is remaining firm on its deadline of September 23rd for persons to voluntarily come forward and file delinquent FBARs (Foreign Bank Account Reporting) in consideration of lesser penalties. Generally, if you maintain a foreign bank or brokerage account, whether or not �hidden,� you are required to file a FBAR each year. Please contact our office if you need assistance in determining your obligations or filing a FBAR.