Swiss banks are continuing to send letters to U.S. Taxpayers with undisclosed Swiss accounts encouraging them to come forward and declare their undisclosed offshore accounts or be closed out.

Swiss banks have been sending U.S. Taxpayers with undisclosed Swiss accounts letters informing them that the Swiss banks will be revealing their undisclosed offshore accounts to the IRS and the Department of Justice, (DOJ).  In addition, recently closed Swiss accounts that any U.S. Taxpayer had will also be revealed in detail to the Department of Justice and the Internal Revenue Service.  The disclosure of U.S. taxpayer undisclosed Swiss account information is occurring because some of the banks in Switzerland are participating in the IRS’ Voluntary Disclosure Program for banks.  The Swiss banks that have entered into this program are trying to avoid criminal prosecution and/or criminal investigation and in the process are exposing U.S. client banking information.

The detailed account information of U.S. taxpayers with undisclosed Swiss accounts is being disclosed by Swiss banks. This disclosure of U.S. taxpayer account information is happening because some of the banks in Switzerland are entering the IRS Voluntary Disclosure Program for banks.  The Swiss banks that are coming into the IRS Voluntary Disclosure Program are trying to avoid criminal prosecution and/or investigation. 

If you have an undisclosed offshore account, the Internal Revenue Service (IRS) could obtain the account information from a Swiss bank or any foreign bank that is cooperating with them.

The Internal Revenue Service (IRS) and the Department of Justice (DOJ) have expanded their investigations of U.S. taxpayers with undisclosed offshore bank accounts; the latest focus is on the Cayman Islands. The sting in the past week in the Cayman Islands should serve as a warning to any U.S. Taxpayer with an undisclosed offshore bank account.