UBS Tax Evasion Cases To Get Special Scrutiny by Elite IRS Auditors

The IRS posted internal job listings recently for a newly created office within its Large and Mid-Size Business division. The Service is looking for auditors experienced in working with international tax treaties and complex cross-border corporate structures. The focus? Wealthy Americans who hid their assets in UBS accounts.

The Service is gearing up for an anticipated 10,000 new tax evasion cases that should result from the UBS settlement and the current off shore income tax amnesty program, set to end on September 23. Wealthy Americans with off shore holdings are scrambling for last minute tax advice, and hundreds are taking part in the IRS's amnesty program.

As part of a settlement, UBS, the United Bank of Switzerland, agreed on August 19, to turn over 4,450 names of its wealthiest US account holders who are the most likely to be engaging in tax evasion. UBS has 52,000 American account holders, and the agreement arose from litigation filed by the United States government to get access to the secret Swiss bank account information. UBS will give information about the 4,450 accounts to the Swiss government, which will screen the information and decide what should be forwarded to the United States.

The new IRS global high-wealth industry group will be one of six industry-specific sectors within the IRS's Large and Mid-Size Business division. IRS spokesman Frank Keith remarked that the establishment of the global high-wealth industry group was the first step in the IRS's long term enforcement strategy. Those selected will be the most experienced IRS auditors in dealing with global entities.