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UBS and IRS: What's Next
UBS and IRS: What's Next
The 6 year statute of limitations is effective for tax returns filed after
3/18/10 (and for any other tax return for which the assessment period has
not year expired as of 3/18/10, i.e., Tax Year 2006 forward).
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Offenses include: willfully failing to pay any tax or make any return
(other than a return required under authority of Part III of Subchapter A of
Chapter 61) at the time or times required by law or regulations; for offenses
described in Sections 7206(1) and 7207 relating to false statements and
fraudulent documents.
With the foregoing in mind, and with specific attention to the UBS
matter concerning Switzerland's largest bank, the defendant bank entered
into a plea agreement with the United States Government, that consisted
of a $780M monetary fine and the obligation by the bank to deliver to U.S.
authorities the identity of United States citizens who maintain accounts with
the bank and the attendant information concerning the contents and
transactions of those accounts.
A USB stick is identical to a "flash drive" and places all the bank
information sought by the U.S. authorities in the hands of the individual
account holders (whose identities were revealed by a former UBS banker
by the name of Bradley Birkenfeld to the United States authorities in the
hopes that it would be a benefit to him when he was sentenced by the
United States for banking violations).
It is the opinion of this author that UBS may "sell out" all of these
American account holders due to the fact that the U.S. authorities may
subpoena these USB sticks and obtain all tax information that was sought
from the bank itself.
Account holders who received the USB sticks, were they to destroy
them, would be culpable of an additional Federal felony (i.e., obstruct tax
collection), which carries with it a fine and up to 3 years in prison.
For civil tax fraud, there is no statute of limitations (the tax can
be assessed at any time).
3. Collateral Estoppel:
2. Statute of Limitations
If the IRS,
institutes a civil tax audit they may summons
evidence which may support both a civil penalty (e.g., fraud) and criminal
culpability (e.g., tax evasion). The evidence from the civil tax audit may
then be used for a subsequent criminal prosecution of the same U.S.
Taxpayer.
2. Civil tax deficiency includes all tax due on the tax returns
(³evaded income and deductions adjustments´).
3. Evidence that does not meet the burden of proof in a criminal
investigation may be adequate for civil tax issues (i.e., the IRS
standard of proof is ³a preponderance of the evidence´ for civil
penalties, and ³beyond a reasonable doubt´ for criminal
penalties).
Gary S. Wolfe
A PROFESSIONAL LAW CORPORATION
9100 Wilshire Blvd., Suite 505 East
Beverly Hills, CA, 90212
(310) 274-3116
http://www.gswlaw.com
email: gsw@gswlaw.comÊ