IRS Settles UBS Summons Case

It looks like the Swiss backed down and have agreed to let UBS reveal the names of U.S. tax cheats with accounts in the Swiss bank. While the IRS was originally after information about 52,000 accounts, they likely settled for a lot less. Most media outlets are reporting that information about 5,000 to 10,000 accounts will be disclosed.

Also unknown is whether those disclosures will include information about individuals who have already taken advantage of the IRS's amnesty program, or if the IRS will get new names.

In the meantime, this week another individual pled guilty to keeping an offshore account at UBS.

Will prosecutions pick up once the amnesty program ends?

Another One Bites the Dust -

Another UBS client has pled guilty to filing a false tax return, putting more pressure on the hold outs. The IRS's amnesty program ends in September and it looks like UBS is going to turn over a lot, if not all, of the information the IRS has summoned.

Why? Because there is now evidence that UBS committed fraud, not only in the U.S. but also in Switzerland. The latest plea agreement indicates that the defendant went to Switzerland having decided to "come clean" While there he consulted an attorney who told him not to worry about it, his name wouldn't be disclosed. After making this assurance, the defendant's Swiss attorney bribed a UBS official to keep the defendant's name off the list of UBS customer's already disclosed to the IRS. The defendant allegedly paid $40,000 to keep his name a secret.

This incident would seem to undercut UBS and Switzerland's argument that no Swiss laws have been broken and, therefore, UBS doesn't have to respond to the IRS's summons.

UBS Yacht Broker Client Pleads Guilty -

One of UBS's american clients, a Florida yacht broker, pleaded guilty to filing a false tax return today. According to government sources, the false tax return was filed on October 18, 2008, and failed to report his interest in a UBS account in Switzerland. He also failed to report the income he earned on his UBS bank accounts. The account was owned through a panamanian corporation. 

 

That means it took the government less than six-months to investigate and prosecute the case -

It also appears that this case may be related to the criminal complaint filed a couple of weeks ago against the Florida accounant (see prior posts) many of whose clients were in the yacht brokerage business.