A former UBS, AG ("UBS") client
from Miami Beach, Florida was sentenced to four months in federal prison for
willfully failing to file a Form TD F 90-22.1, Report of Foreign Bank and
Financial Accounts ("FBAR"), for the UBS account the man held with as
much as $4,000,0000 in it. This information was released by the U.S.
Attorney for the Southern District of Florida on July 25 2012.
The former UBS client paid a civil penalty
of $2,000,000 related to the $4,000,000 high account balance stemming from tax
year 2006. Additionally, the former UBS client was sentenced to four
months in federal prison, three years of supervised release, 250 hours of
community service and a $20,000 criminal fine.
The UBS account related to two offshore
corporations owned by the man, one in the Virgin Islands and one in the
Republic of Panama. These corporations opened accounts at UBS. The
man was not named as the direct owner but instead he was deemed only the
"beneficial owner." The accounts with UBS were opened from tax
years 2005 through 2007.
It is stated that the man was aware of
the obligation on the FBAR to report as he had previously filed FBARs for other
offshore corporations. An FBAR is required to be filed by both U.S.
citizens and residents who have a financial interest in or signatory authority
over a non-U.S. financial account with a value of more than $10,000 at any
point during the tax year. The $10,000 amount is an aggregation of all
non-U.S. financial accounts and not just an analysis on an account-by-account
basis.
The information on the former UBS client
was turned over after UBS agreed in February 2009 to pay $780,000,000 under a
deferred prosecution agreement to settle the claim that UBS conspired to
defraud the U.S. by impeding the Internal Revenue Service
("IRS"). UBS also agreed to turn over information to the U.S.
Department of Justice on 300 account holders. Google Lance Wallach for more
articles on point.
A US citizen or resident that held an
account with UBS or any other institution that has not filed the necessary
FBARs for the last eight tax years, should immediately reach out to get help to
discuss any potential issues they may have and their alternatives. Filing for amnesty
and then opting out are two options that our former IRS agents have
successfully done for our clients. If not done properly it can be a disaster.
We suggest you use a CPA with years of prior experience with the IRS
international division.
Lance Wallach, National Society of Accountants Speaker of
the Year and member of the AICPA faculty of teaching professionals, is a
frequent speaker on FBAR, OVDI, IRS tax amnesty and opting-out abusive tax
shelters, international tax, and estate planning. He writes about 412(i),
419, Section79, FBAR, OVDI, IRS tax
amnesty and opting-out and captive insurance plans. He speaks at more than ten
conventions annually, writes for over fifty publications, is quoted regularly
in the press and has been featured on television and radio financial talk shows
including NBC, National Public Radio’s All Things Considered, and others. Lance
has written numerous books including Protecting Clients from Fraud,
Incompetence and Scams published by John Wiley and Sons, Bisk Education’s CPA’s
Guide to Life Insurance and Federal Estate and Gift Taxation, as well as the
AICPA best-selling books, including Avoiding Circular 230 Malpractice Traps and
Common Abusive Small Business Hot Spots. He does expert witness testimony and
has never lost a case. Contact him at 516.938.5007, wallachinc@gmail.com or lanwalla@aol.com visit www.taxadvisorexperts.com or www.Lawyer4Audits.com.
The information provided herein is not
intended as legal, accounting, financial or any type of advice for any specific
individual or other entity. You should contact an appropriate professional for
any such advice.
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