UBS vs. IRS Update – Client Selection for UBS Case

As many know, the IRS released today the criteria or characteristics being used by UBS to report American clients evading taxes. In August, UBS agreed to hand over at least 4,450 names and this is following a large settlement of $780 million and the revelation of 250 names in February for providing offshore banking services.

The selection criteria UBS is using to select clients with accounts from 2001-2008 may be:  Having at least $988k (according to Bloomberg) in an unreported account (or 1M Swiss Francs)

• Previous owners of secret off-shore company accounts with at least $988k (according to the NY times)
• Individuals between 250k and 1 million Francs caught concealing funds or providing false documents
• Accounts that failed to report a W-9 over 3 years with at least 100k Francs in annual income
• Accounts open with other documentation besides a US Passport

Interesting is how any individuals who came forward under the recent IRS tax amnesty for offshore account holders, even if with UBS, does not count to the quota of names UBS must provide to the IRS. During these tough economic times, the IRS is doing whatever it can to recover Federal back taxes in order to prop up tax revenues.