After Indictment of UBS Executive, Swiss Bank's US Clients Seek IRS Deals
Although the IRS lacks the resources to go after all of the estimated 20,000 U.S. residents who reportedly may have set up secret accounts at UBS AG in order to avoid taxes, that’s proving not to be a major enforcement problem.
Following news that an executive of the Swiss bank has been indicted and that UBS records concerning United States customers have been turned over to the feds, many of these alleged tax dodgers are voluntarily turning themselves in to the Internal Revenue Service, according to the Wall Street Journal (sub. req.).
“Moved to take action after a former UBS private banker was indicted and spilled valuable secrets, the UBS clients are hiring tax lawyers and pursuing amnesty through an Internal Revenue Service voluntary disclosure program,” the newspaper explains. “The program allows U.S. citizens to avoid criminal prosecution if they acknowledge evasion and agree to pay taxes and penalties.”
Earlier coverage:
ABAJournal.com: “UBS Exec Charged in Federal Tax Fraud Conspiracy Case”
ABAJournal.com: “UBS Gave Feds Information About Customers’ Bank Accounts in US”
ABAJournal.com: “Tough Calls for US Tax Dodgers & Counsel; Secret Bank Accounts Exposed”
