The IRS reported that eight banks, including the Swiss bank Julius Baer, turned over U.S. client data on taxpayers suspected of tax evasion on January 30, 2012. This does not put an end to the negotiations between the U.S. and Switzerland; three more banks are still expected to turn over client data and a total of 11 banks, also including Julius Baer, are expected to pay heavy fines.

On January 30, 2012 eight Swiss banks, including Credit Suisse, Julius Baer, and Basler Kantonalbank turned over U.S. client data on taxpayers suspected of tax evasion. This does not put an end to the negotiations between the U.S. and Switzerland—three more banks are still expected to turn over client data and a total of 11 banks are expected to pay heavy fines. Among the 11 banks include: Credit Suisse, HSBC Holdings Plc, Basler Kantonalbank, Wegelin & Co., Zuercher Kantonalbank, Julius Baer Group Ltd., Bank Leumi Le-Israel BM, Bank Hapoalim BM, Mizrahi-Tefahot Bank Ltd., Liechtensteinische Landesbank AG, and NZB AG.

A grand jury returned indictments against three client advisers, Michael Berlinka, Urs Frei, and Roger Keller, who were employed under Swiss private bank Wegelin and Co. These advisers were charged of conspiring with their U.S. clients to assist in maintaining undisclosed offshore accounts from the IRS. According to the indictment, the three allegedly instructed prospective U.S. clients that their account information would be safe at Wegelin because of the bank’s small size and because it had no branches outside Switzerland.

On January 9, 2012 the IRS reopened its Offshore Voluntary Disclosure Program (OVDP) to encourage U.S. taxpayers with undisclosed offshore accounts to come into compliance. The renewal of the program was in response to continuing interest from U.S. taxpayers after the 2009 and 2011 programs ended.

The Swiss Government recently proposed a multibillion-dollar settlement to U.S. authorities, likely to reach $10 billion or more. This settlement was proposed to remedy pending investigations and allegations regarding the potential involvement of Swiss banks in encouraging U.S. clients to commit tax evasion through undisclosed offshore accounts. The settlement is expected to cover all Swiss Banks, approximately 355 banks, including Credit Suisse.