Credit Suisse Agrees to Pay 2.6 Billion to The U.S. Government, What Effect Will This Have On U.S. Taxpayers With Undisclosed Overseas Accounts?
Kevin E. Thorn, Managing Partner of the Thorn Law Group, discusses the current plea agreement between Credit Suisse and the Department of Justice (DOJ) as well as the effect that this settlement may have on the rest of the foreign banking community and U.S. Taxpayers who still may have undisclosed offshore accounts at foreign banks.
Washington, DC (PRWEB) May 22, 2014 - Along with a guilty plea, in which Credit Suisse admitted to conspiracy to aid and assist U.S. taxpayers in filing false income tax returns and other documents, the Swiss bank has also agreed to pay 2.6 billion dollars to the U.S. government. Additionally, the Swiss bank has agreed to provide the DOJ with names and account information of U.S. account holders. [“Credit Suisse Pleads Guilty to Conspiracy to Aid and Assist U.S. Taxpayers in Filing False Returns,” U.S. Department of Justice Press Release, May 19, 2014]
Tax attorney, Kevin E. Thorn, observes that as the result of the recent guilty plea, U.S. taxpayers with undisclosed overseas accounts may expect to have their information revealed by other foreign banks, even those outside of Switzerland. Thorn adds, "Fearing criminal prosecution themselves, other foreign banks will likely fully cooperate with the U.S. government to avoid investigation or prosecution for illegal financial activity."
The Credit Suisse guilty plea signals a change in the DOJ position regarding criminal prosecution of banks and other financial institutions. Now the message is clear that no bank, no matter how big and powerful, is above the law. The Justice Department will pursue and criminally prosecute any company or individual that participates in any illegal or dishonest financial activity, to the fullest extent of the law. [See, Speech by Attorney General Eric Holder on May 19, 2014.
Kevin E. Thorn, Managing Partner of Thorn Law Group, states, “Many foreign banks will likely begin disclosing the identities and account information of U.S. account holders to the U.S. government out of fear. The Department of Justice has proven just how serious they are at apprehending anyone with undisclosed foreign accounts and the people who helped them.”
Thorn comments that United States taxpayers with undisclosed offshore bank accounts should enter into the Internal Revenue Service (IRS) Voluntary Disclosure Program before their information is disclosed to the IRS and the Department of Justice (DOJ). Disclosure to the IRS through the IRS Amnesty Program must occur before the U.S. taxpayer is contacted by the IRS. Thorn expresses concern that, there is a possibility that the IRS could change the OVDI terms as a result of the Credit Suisse plea agreement, Swiss bank voluntary disclosures and other ongoing efforts around the globe, including those in India, Israel, and the Caribbean. [See Speech by Deputy Attorney General James Cole on May 19, 2014.]
Kevin E. Thorn is a U.S. tax attorney who represents hundreds of U.S. persons with offshore accounts, and he states that “U.S. taxpayers with undisclosed offshore accounts should come into compliance with the IRS immediately. The DOJ is actively prosecuting U.S. persons they find with hidden foreign accounts, as well as U.S. taxpayers with undisclosed foreign companies and trusts.” Mr. Thorn advises American taxpayers to enter the IRS’ Offshore Voluntary Disclosure program to settle their issues. He points out that the penalty for not disclosing offshore accounts, trusts or companies can be devastating. “The best way to avoid criminal prosecution and protect your interests is to come forward and get back into compliance by making a voluntary disclosure to the IRS.”
For additional information on the news that is the subject of this release, contact Kevin E. Thorn, Managing Partner of Thorn Law Group at 202-270-7273 or visit us at https://www.thorntaxlaw.com/.
About Thorn Law Group, PLLC: Thorn Law Group, PLLC is a law firm dedicated to helping clients resolve complicated tax, criminal tax, and international tax problems.
Kevin E. Thorn
Managing Partner Thorn Law Group, PLLC