As highlighted yesterday on the front pages of the Wall Street Journal, the New York Times and other newspapers across the country- – Credit Suisse has pled guilty to conspiracy to aid tax evasion (by helping U.S. citizens unlawfully evade taxes through Swiss bank accounts). The large bank agreed to pay about $2.6 billion in
FBAR and FATCA Provide Separate Reporting Requirements for Offshore Accounts
FBAR and FATCA (which require reports by U.S. persons of interests in foreign accounts) overlap to a large extent. But they impose separate reporting requirements. Failure to comply (especially with regard to FBAR) can have very severe consequences.
FBAR (a foreign bank account report) stems from a banking regulation under the Bank Secrecy 
Act. It
Opening Offshore Accounts Has Become More Burdensome
The recent scandals involving tax evasion by some Americans (who had assets in secret Swiss bank accounts) are still playing out. The Swiss Cabinet recently announced a new program that would allow about a dozen Swiss banks to provide the United States Department of Justice with information on bank accounts held by Americans. The Justice
Further Erosion of Swiss Banking Secrecy
A front page article in today’s Wall Street Journal as well as an article by Lynnley Browning and Julia Werdigier in today’s New York Times report that Swiss officials have agreed to let banks release more information on the holdings of their American clients.
This most recent development is yet another step in a process
Tax Season Reminder: Reporting Requirements for Offshore Accounts
Offshore accounts – – whether in trusts, LLCs or just in your own name – – can have a variety of financial, business and asset protection advantages. But they will generally be subject to U.S. tax. And they have special reporting requirements. See for example my post from last year about IRS Form 8938.
Another Reminder That Asset Protection ≠ Hiding Your Assets
Avoiding U.S. taxes by hiding your assets is illegal. Last month, Switzerland’s oldest bank pled guilty to a criminal conspiracy charge for helping wealthy Americans avoid taxes by hiding their assets in secret accounts.
Wegelin & Co., founded in 1741, is the first Swiss bank to plead guilty to a criminal charge in the
Mitt Romney Keeps Funds in Cayman Islands and Switzerland
As I have mentioned in many other posts, there is nothing wrong with using Swiss bank accounts or offshore entities. A recent front page article in the New York Times noted that Mitt Romney and his wife hold millions of dollars in a Swiss bank account and millions more in partnerships in the Cayman Islands.
IRS Form 8938 — Another Reporting Requirement for Offshore Assets
The IRS is continuing its efforts to identify sources of offshore taxable income of U.S. taxpayers. This has lead to a new reporting requirement. Many U.S. taxpayers with foreign assets must now file IRS Form 8938 – Statement of Specified Foreign Financial Assets. This new requirement is applicable to the 2011 tax year, and must be
More Changes to Swiss Banking Rules
According to Matthew Saltmarsh writing in the Thursday, April 21, 2011 New York Times — Switzerland will probably sign new treaties by the summer with Germany and Britain under which their citizens will pay taxes on most of their undeclared assets in Swiss banks. It appears that France and Italy will sign similar treaties with
Crackdown Continues On Offshore Tax Schemes
UBS (the giant Swiss financial institution) has received a lot of bad press recently in connection with offshore tax evasion schemes. More UBS clients were indicted earlier this month, but federal authorities are focusing on other financial institutions as well. Lynnley Browning reported last week in the New York Times that arrests have now been