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.

Swiss banks are disclosing detailed information about U.S. taxpayers with undisclosed Swiss accounts. Also, recently closed Swiss accounts that any U.S. Taxpayer did not disclose will also be revealed in detail to the Department of Justice, (DOJ) and the Internal Revenue Service (IRS).  The disclosure of U.S. taxpayer undisclosed Swiss account information is occurring because some of the banks in Switzerland are taking part in the IRS’ Voluntary Disclosure Program for banks.  The Swiss banks that are partaking in this Voluntary Disclosure Program are trying to avoid criminal prosecution and/or criminal investigation.

U.S. Taxpayers with undisclosed Swiss accounts that have been sent letters by Swiss Banks should know that the Swiss Banks will potentially provide information about U.S. Taxpayers with undisclosed Swiss bank accounts to the IRS. This disclosure of U.S. taxpayer account information is happening because some of the banks in Switzerland are joining the IRS Voluntary Disclosure Program for banks.  The Swiss banks that are entering into the IRS Voluntary Disclosure Program are trying to avoid criminal prosecution and/or investigation. 

The Internal Revenue Service (IRS) continues to accept 2012 Voluntary Disclosure applicants as U.S. taxpayers seek protection from severe civil penalties and the possibility of criminal prosecution, which has stemmed from the risk of maintaining an undisclosed offshore account.