James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Judge Authorizes IRS to Seek Bank Records From UBS
Author: James F. McDonough
Date: February 1, 2013
Key Contacts
Back
The IRS is within its rights to request financial records from UBS of U.S. taxpayers suspected of hiding their income in accounts with Swiss bank Wegelin, a court ruled.
U.S. District Judge William Pauley granted the Internal Revenue Service a motion to issue a “John Doe” summons – which requests information about possible tax fraud committed by individuals whose identities are not known – on UBS. Following the guilty plea and subsequent closure of Switzerland’s oldest bank Wegelin, which admitted to helping U.S. clients skirt their U.S. tax law obligations, Pauley said that the IRS request was valid, as many UBS taxpayers may have hidden their income at Wegelin and other Swiss banks.
Following the ruling, a UBS spokesperson that the bank would comply with the request, and offer up information on U.S. clients. However, it noted that it would only provide U.S. records, not Swiss ones, to the federal tax agency, according to Reuters.
Although UBS was previously absolved of its own tax law violations in 2009 after it admitted to helping Americans evade taxes and agreed to a $780 million settlement, its association with Wegelin has put it back in the spotlight. Wegelin pleaded guilty on January 3 to helping U.S. clients hide income in secret accounts, and became the first foreign bank to be indicted by the U.S. A spokesman for the bank also raised eyebrows and make other banks nervous when he admitted that facilitating tax evasion was a common practice among many financial institutions. The 271-year-old institution agreed to pay $57.8 million in fines.
Wegelin is just the latest bank on the list of Swiss institutions the IRS is examining in connection with tax evasion as it seeks to crackdown on the misuse of offshore accounts and close the federal tax gap.
- Practices: Tax, Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.