IRS to Receive Unprecedented Amount of Information in UBS Agreement
WASHINGTON — The Internal Revenue Service and the Department of Justice today announced the successful negotiation of an agreement that will result in the IRS receiving an unprecedented amount of information on United States holders of accounts at the Swiss bank UBS.
As a result of this agreement, the IRS will receive substantially all of the accounts that it was interested in when it initiated the John Doe summons against UBS.
Under the agreement, the IRS will submit a treaty request to the Swiss government describing the accounts for which it is requesting information. The Swiss government will then direct UBS to initiate procedures to turn over information on thousands of accounts to the IRS. The IRS will receive information on accounts of various amounts and types, including bank-only accounts, custody accounts in which securities or other investment assets were held and offshore company nominee accounts through which an individual indirectly held beneficial ownership in the accounts.
Also, the agreement retains the U.S. Government’s right, if the results are significantly lower than expected and other measures fail, to seek appropriate judicial remedies, including resuming actions to enforce the John Doe summons.
The agreement involves a number of simultaneous legal actions:
The judicial enforcement of the John Doe summons will be dismissed. While this enforcement motion will be withdrawn, the underlying summons remains in effect.
Upon receiving the treaty request, the Swiss government will direct UBS to notify account holders that their information is included in the IRS treaty request. It is expected that these notices will be sent on a rolling basis with some being sent over the coming weeks and others over the coming months. Receipt of this notice will not by itself preclude the account holder from coming into the IRS under the Voluntary Disclosure Program.
In addition, the Swiss Government has agreed to review and process additional requests for information for other banks regarding their account holders to the extent that such a request is based on a pattern of facts and circumstances equivalent to those of the UBS case.
Information provided to the IRS through this process will be thoroughly examined for all potential civil and criminal tax violations. The IRS will assess any additional tax, interest and a number of applicable penalties. This includes the penalty for the willful failure to file an FBAR. This penalty can be up to 50 percent of the value of the account for each year an FBAR was not filed.
The IRS will also recommend criminal prosecution in those cases where the facts warrant such an action. To date, the IRS and the Department of Justice have successfully prosecuted four United States customers of UBS whose information was provided to the IRS by UBS as part of the Deferred Prosecution Agreement.
Individuals whose information is obtained by the IRS through this process will, by longstanding policy, not be eligible for the voluntary disclosure program.
Related Items:
U.S.-Swiss Government Agreement
Declarations
Bank Agreement
Offshore Tax Avoidance and IRS Compliance Efforts
An Accountants Guide To: What is Networking Anyway?
By Stacie Clifford Kitts, CPA
If you are a seasoned professional, you already know.
However, there are plenty of young accountants and college students who are wondering just this – what is networking – do I need to do it – and where do I begin? Frankly, as a young staff, I questioned how my partners were heading out into the world and bringing back stacks of new clients for me to work on.
I was mystified and oh so innocent…..It looked like *magic*.
What else could it be, except maybe an underground society known as networkers, who ventured out into the world, performed some secret handshake, and produced clients from thin air?
Amazing!
But, where was this secret society? Did they have a secret location… like – The Bat Cave – a giant underground warehouse where they plucked potential clients off the shelf and checked them out at the front of the store?
Was that it?
I longed for someone to tell me…..I had to know the answer to this secret networking magic.
So on a particularly busy day, with a new client file in my hand, I stared into the face of my partner and asked. “Sir, where is the Bat Cave?”
“Oh my child,” he replied as he looked down and shook his head. “I know of no Bat Cave. But if you want, I will introduce you to Robin, one of my referral sources.”
O ‘M God – Awkward!
And so began my enduring quest for the mysterious Bat Cave, a secret place teaming with clients patiently waiting to be plucked from the shelf.
And yet, I wasn’t alone in my quest. For you see, as with all quests, I have my fellowship, my team of White Knights, a trusted alliance – my – referral sources – who like all trusted guides are there to lead the way.
So fellow seekers, during your networking journey, you are bound to roam lost and alone – until you too find your trusted alliance. And, In order to help you in this endeavor, I have graciously compiled these tips. Good luck travelers…. And let me know if you find the Bat Cave…because unfortunately, I never did:
1) Begin your quest by sharpening you craft. In order to sell your services, you need some services to sell. Have your “elevator speech” ready. Practice what you will say when people ask you questions about your profession, your employer, and your background. Treat it like an interview process because that is what it is – a five second interview meant to grab someone’s attention just long enough for them to find you interesting.
2) Socialize Socialize Socialize. Okay, so networking is directed socializing – meaning it’s about meeting people, in a particular profession, with a particular goal in mind. But as intimidating as that might sound, all it really is, is dating… In fact, networking for referral sources has many of the same elements as relationship dating. Don’t think so -Let’s explore the typical referral dating scenario:
First you attend a social event, you meet someone who interest you, you exchange phone numbers, you call the next day and set up a “referral date”, typically coffee, breakfast, lunch or dinner, you explore whether this person is someone who is going to help you get what you want, and then you consider if a more committed relationship is warranted.
Ummm sounds like a typical date to me. So sharpen your dating skills, be sure to follow up [you know, call the next day], be engaging, have fun, and for heaven’s sake, act as if you want to be there.
Now the question is – how to find people to “referral date.” Here are some ideas:
a. Join a business-networking group – this can help you to focus your energy towards people who have the same business goals.
b. Volunteer your time – besides just being a rewarding experience, you will undoubtedly broaden you social horizon.
c. Join social clubs that interest you such as a running club, bicycling club, softball team, the girl scouts… well you get the point – again the more people you know…
d. Tell people you are looking for clients – hey, it doesn’t hurt to ask – and if you don’t ask – frankly people might not realize that you are looking.
e. Get on the internet – write a blog, create a web site, join online social networking groups, send out email reminders with handy tidbits of info to people in your network – the point is to remind people you are around so when someone needs a service, your name is on their mind.
3) Be fearless in your quest. And I mean just that. Don’t be afraid – get out into the world and tell people what you do. Ask for business. Hand out your card – and do it over and over and over again until you find the right, group, network, or formula that works for you. Keep in mind that your partner’s journey may be different from yours. As networkers, we each have our own styles. So don’t get discouraged if someone else’s journey isn’t for you.
Stacie's Tax Stuff 