Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

'If they think this is just UBS, they're mistaken'

September 29, 2009

The IRS has extended the offshore account reporting amnesty by another two weeks. Lee Sheppard reports in Tax Analysts ($link) that folks whose offshore accounts aren't with UBS shouldn't ignore the amnesty:

Another folk belief is that customers of banks other than UBS will get away with tax evasion. "If they think this is just UBS, they're mistaken," said [DOJ attorney Kevin] Downing. "UBS is not an anomaly. This is just the beginning. We're going after foreign banks and professionals." Countries the government is interested in include Hong Kong, Panama, and Singapore.

If you are interested in the amnesty, act now. Lawyers have been overwhelmed with amnesty cases, and they might not be able to take new clients who wait until the last minute.

UPDATE: Criminal tax defense attorney Jack Townsend has a cynical (but likely accurate) view:

DOJ Tax is on a public relations blitz to drum up business / revenue by incentivizing taxpayers with unreported offshore bank accounts to join the IRS voluntary disclosure initiative ending 10/15. A key facet of the blitz is the high profile indictments recently obtained. At last week's ABA Tax Section meeting, DOJ Tax rolled out its mouthpiece, Kevin Downing himself at the forefront of the prosecution side of this juggernaut, to remind practitioners and, through them and the press attending, the public that they should pony up in the voluntary disclosure program.

If you have offshore accounts, the amnesty looks wise, but I suppose you don't have to like it.