The IRS is continuing its efforts to catch taxpayers who failed to report foreign earning or accounts. The Associated Press reported that the IRS is in the hunt for taxpayers who had foreign accounts with companies owned by R. Allen Stanford — the billionaire who was indicted for fraud and other charges. Basically Stanford, ran a ponzi scheme very much like Bernie Madoff.
Last week, the IRS requested from a Federal judge that the court appointee managing Stanford’s companies (Ralph Janvey) to report US taxpayers who were foreign account holders from 2002-2008 with any one of Stanford’s entities. The IRS states that evidence is available showing some of Stanford’s investors failed to report income. If this is the case, various taxpayers will be prosecuted and served with extensive IRS penalties and interest.
As tax revenues plunge due to a lackluster economy, the IRS and Feds are doing everything possible to recover back taxes or taxes owed. This runs parallel to the the IRS vs. UBS case where UBS is to hand over 4k US taxpayers who held foreign accounts with UBS.
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