U.S. vs. Swiss Banks: This is For Real, Not a Soccer Game


For those who were wondering what the U.S. Department of Justice and the IRS were going to do once September 9 passed and the time to enter the offshore voluntary disclosure (OVDI) period ran, the answer is here.

As reported in the Chicago Tribune, the U.S. is preparing legal and administrative actions against 10 Swiss bank to obtain account records on U.S. resident account holders. That means if you name is on the account directly or indirectly you will be in the cross-hairs and the ultimate target. For those U.S permanent residents such as Green Card holders and U.S. citizens regardless of where they live, this news should be of concern if they did not enter the voluntary disclosure program expecting to avoid detection. So what does the ultimate disclosure mean? Well for one thing, the U.S. IRS and DOJ are more likely to take hardline positions on penalties for non-filers of FBAR’s and information returns, like the Report of Foreign Gifts/Inheritance and the returns for controlled foreign corporations. While reasonable cause is grounds for penalty abatement in each of these cases, the government may take the position that there was a time to come forward and raise that defense, but by not coming forward, absent extenuating circumstance, the defense will be rejects. What does that mean?

Please see full article below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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