Voluntary Disclosure Can Help Holocaust Survivors Targeted by IRS
The IRS has is reportedly going after the relatives of Holocaust survivors and refugees who hid money in Switzerland before World War II broke out.
Reports out of Zurich indicate the Swiss government has agreed to give the IRS information about some overseas accounts for people trying to avoid U.S. banking laws. The development stems from a U.S. Justice Department investigation of UBS’ alleged courting of wealthy Americans for such offshore tax evasion. As the Justice Department expands its investigation to include other overseas banking entities, some owners of Holocaust-era accounts have sought legal help in “coming clean” with the IRS.
Among the 20,000 or so accounts currently being targeted by the IRS, it’s estimated, perhaps a thousand or so involve Holocaust-era funds. The amounts in the accounts range from as little as $25,000 to complete hidden fortunes in the millions.
The clients of the Swiss banks are being advised that that voluntary disclosure can help mitigate legal problems later. The IRS offers leniency for voluntary disclosure and it is good advice for any American with IRS tax problems to take advantage of this policy.
A timely disclosure of a substantial unreported tax liability shows that the taxpayer is willing to cooperate with the IRS in determining his or her correct tax liability. This is an important factor in deciding whether the taxpayer’s case should ultimately be referred for criminal prosecution.
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Tags: offshore tax evasion, tax evasion, tax expert, vountary disclosure
