If you haven’t been following, the IRS vs UBS civil case was to be taken out of court with a tax settlement and the disclosure of UBS clients to the IRS. In February, UBS agreed to pay $780 million and disclose the names of 250 clients suspected of tax evasion.
Most recently, UBS in cooperation with the Swiss government, announced that it would hand over 4,450 names to the IRS in a civil tax settlement. This is a new light for the IRS, as they can clearly pursue foreign accounts and foreign institutions. It shows the IRS will go to no limits to find tax evaders and individuals who owe money to the them or the federal government. Many will argue this is an invasion of privacy and and abuse of power, other contend that the Swiss were only trying to comply with the US and help the IRS get the money it is owed.
Also reported today, is the fact that the Swiss agreed to allow the IRS to probe other banks suspect of harboring tax evaders. If you currently have a foreign account, it is best to come forward to the IRS as many if you can get a lesser sentence or leniency on penalties. If you have a tax lien, the IRS, state and local authorities will eventually get their money. With a tax lien, it will damage your credit and prevent you from getting a car loan, mortgage, selling your house, and the like. It is in your best interest to get into compliance with the IRS as soon as possible, remove the lien, and settle with the IRS.
This post was published on August 19, 2009