The Internal Revenue Service’s efforts to collect tax revenues from offshore accounts are paying big dividends. To date, the IRS has collected more than $5 billion from its offshore voluntary disclosure program (OVDP). While the IRS continues to encourage taxpayers to voluntarily disclose offshore assets, (see new OVDP details), it is still aggressively pursuing taxpayers with hidden offshore accounts.
The U.S. government is casting a wide net and is extending its search beyond Switzerland into other countries, including Liechtenstein and Israel.
Liechtenstein recently announced that the United States has requested U.S. client data from its second largest bank, Liechtensteinische Landesbank AG (LLB).
Swiss branches of two Israeli banks have been indicted by the U.S. Department of Justice for allegedly helping Americans conceal their offshore assets. The indictment, filed June 14 with the U.S. District Court in California, centers on United Revenue Services, Inc. (URS), a California and Nevada-based tax preparation firm.
Additionally, the IRS also announced that taxpayers may not be eligible for the Offshore Voluntary Disclosure program after the U.S. Government takes action in connection with their specific financial institution. See New IRS Guidelines on Offshore Voluntary Disclosure Program.
For more information on OVDP and disclosing offshore accounts, see the questions and answers from the IRS or contact a tax attorney.