as reported via the associated press and DEVLIN BARRETT

The IRS is increasing the pressure on US citizens who opened secret Swiss bank accounts.  The IRS is apparently attempting to get the account holders to inform on their advisers or bankers.

The Associated Press was told that demands for information and evidence are increasing — especially since the government sued UBS.  IRS Commissioner Douglas Shulman is also presenting a six month grace period for those with secret offshore accounts to come clean under specific terms and penalties.

The US wants UBS to turn over information on as many as 52,000 U.S. customers.  Earlier this year, the bank agreed to pay $780 million in addition to revealing the identities of around 250 U.S. clients.  However the Justice Department has pressed to get access to the other names.

Swiss authorities are promising to try to protect their bank secrecy.

Outside of Switzerland, the UBS case may also uncover other offshore accounts held by Americans in an attempt to avoid US taxes. The IRS’s offer applies not just to UBS or Swiss offshore banking clients, but to any U.S. taxpayers who have opened an offshore bank account anywhere.

Robert McKenzie, a lawyer with more than a dozen Swiss offshore bank clients considering voluntary disclosure of their  account information to the government, said newer clients coming forward are being grilled by authorities seeking a deeper understanding of how the accounts work and who handles them.

“My view is the IRS is now looking to find those who promote these financial devices, and give advice on these financial devices, and expand the investigation,” he said.

New account holders who come forward now get detailed questions about any travel to conduct the offshore banking business, documents and correspondence related to the accounts, and which bank employees helped them manage the accounts.

The IRS commissioner, in a conference call Thursday said that the IRS was allowing a  six-month window for offshore bank clients to come clean.

This entry was posted on Thursday, March 26th, 2009 at 3:14 pm and is filed under bank accounts, offshore bank. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.