News & Events

The Department of Justice has entered into a deferred prosecution agreement with Bank Leumi Group. Bank Leumi admitted to helping U.S. investors hide money and assets in offshore accounts. Bank Leumi is another in the long line of financial institutions that has been investigated by the Justice Department.  Like most of the banks caught up in an investigation, the bank will turn over information on U.S. account holders.

When a U.S. bank account earns interest or income, the bank sends out a 1099 form alerting the Internal Revenue Service to the money that has been earned. The account holder also gets this 1099 form, which is included with an income tax filing. Of course, offshore banks do not send out these forms. If you have money offshore, you must take on the responsibility of reporting your offshore accounts (and any income those accounts earn) to the Internal Revenue Service (IRS). 

A U.S. District Judge in Manhattan federal court has signed an order allowing summonses to be issued requiring several major U.S. companies to provide information on U.S. taxpayers who may be guilty of tax evasion.  The summons is part of a large-scale criminal investigation to identify anyone who participated in a particular tax evasion scheme between 2005 and 2013. 

The government has been aggressively targeting U.S. investors who have failed to report offshore accounts.  Just recently, the U.S. attorney for the Southern District of New York and the Acting Special Agent for the NY Criminal Investigations Division of the Internal Revenue Service announced that an indictment had been unsealed. The indictment was against a resident of Kentucky named Peter Canale, who is a U.S. citizen.  Canale was accused of conspiring with others to willfully fail to report assets and income to the United States government.