For decades, Americans have depended on offshore banking institutions to protect their assets and ensure privacy. However, in an attempt to crack down on tax fraud, the IRS has taken steps in recent years to eliminate the privacy shields that once existed. In particular, the IRS and the US Department of Justice have targeted Swiss banks, once known as among the most discreet and private in the world.
For decades, Americans have depended on offshore banking institutions to protect their assets and ensure privacy. However, in an attempt to crack down on tax fraud, the IRS has taken steps in recent years to eliminate the privacy shields that once existed. In particular, the IRS and the US Department of Justice have targeted Swiss banks, once known as among the most discreet and private in the world.
As Bloomberg reports:
The pressure on Swiss banks to turn over information on their U.S. clients to the Department of Justice is increasing as a Dec. 31 deadline nears for a program that lets the banks pay penalties and avoid prosecution, with many expected to participate, tax attorneys said.
“The Justice Department is putting pressure on these banks to turn in their clients, who still remain in the dark,” Jeffrey A. Neiman, a former assistant U.S. attorney now in private practice, told Bloomberg on Dec. 17. “If the banks don’t come in and comply, they’re going to be in hot water. If the customers don’t come in and the banks turn them in, they’re going to be dealing with some serious headaches.”
Announced by the DOJ in August, the program requires banks to disclose their cross-border activities and provide detailed information on accounts in which U.S. taxpayers have a direct or indirect interest. Participating banks would have to pay substantial penalties, but would avoid prosecution.
The bottom line for US taxpayers is that assets stored offshore are no longer “safe” from the IRS. And many observers believe that the crackdown will only intensify, and that taxpayers are best off by “coming clean” with their assets rather than wait for hefty penalties to be assessed.
It is easy to see why American taxpayers would desire privacy when it comes to their assets – even taxpayers with no intention of perpetrating any sort of fraud or illegal activity. The IRS is so intrusive and invasive that you simply can’t blame taxpayers for wanting their privacy. But thanks to these recent developments, that privacy will be harder than ever to achieve.
If you’d like to learn more, or if you need assistance resolving your IRS dispute, call 844-841-9857 today!