IRS pressuring, UBS closing down accounts

[RSLudlum]

Swiss bank accounts aren't what they used to be ie when the threat of force is implimented

UBS Is Closing Down Accounts
U.S. Clients at Risk of Exposure

By David S. Hilzenrath
Washington Post Staff Writer
Saturday, November 15, 2008; D01

source


Swiss banking giant UBS, under investigation by the U.S. government for allegedly helping Americans hide money from the Internal Revenue Service, is closing thousands of accounts, putting clients at greater risk of being exposed, tax lawyers say.

UBS clients have been receiving calls and letters telling them that their Swiss accounts will soon be liquidated. Those who have concealed funds from the IRS have two basic choices: They can take new and potentially difficult steps to hide the money, heightening their risk of being caught and punished severely, or they can come clean, lawyers say.

The backdrop for UBS's action is that the U.S. government has been pressing UBS and the Swiss government to disclose the names of thousands of Americans with undeclared accounts, while the Swiss have vowed to uphold Swiss legal protections for bank clients.

However, as a practical matter, whether or not the Swiss formally give up the names, UBS's decision to close the accounts undermines Switzerland's legendary code of bank secrecy, lawyers said.

"I think the bank's actions here are likely to compel clients to come out into the open," said Scott D. Michel, an attorney with the law firm Caplin & Drysdale. "It is a step in the direction of the erosion of bank secrecy," he said.

UBS's action forces affected clients "to play some hand," and "therein lies the great trap," said lawyer William M. Sharp Sr. of Sharp & Associates.

UBS, which is Switzerland's largest bank, hinted at the possible consequences in a recent letter to an American depositor.

"[W]e are unfortunately not longer able to provide you with our banking services and are herewith providing you notice to terminate your current banking relationship . . . 45 days from the date of this letter," read one piece of correspondence from UBS in Zurich to an overseas representative of the client.

"Depending on your individual circumstances, UBS further recommends that you consult with your U.S. tax advisor or tax preparer to file, if necessary, amended U.S. tax returns pursuant to the IRS's Voluntary Disclosure Program," UBS wrote.

rest of article here

 

[Zippyjuan]

SInce UBS has branches in the US this may depend on where you opened your account what laws they have to abide by. If you opened your account in say New York, they may be forced to release information about your account. If you opened it in Zurich you are probably coverered under Swiss law.

 

[bojo68]

SInce UBS has branches in the US this may depend on where you opened your account what laws they have to abide by. If you opened your account in say New York, they may be forced to release information about your account. If you opened it in Zurich you are probably coverered under Swiss law.

The Swiss banks opened their books to LE years ago. How do you think they were obligated to pay back depositors of gold from ww2 that stole gold out of the teeth of corpses?

 

[Chester Copperpot]

"Depending on your individual circumstances, UBS further recommends that you consult with your U.S. tax advisor or tax preparer to file, if necessary, amended U.S. tax returns pursuant to the IRS's Voluntary Disclosure Program," UBS wrote.


WHat a joke

 

[ArchPaul]

"Depending on your individual circumstances, UBS further recommends that you consult with your U.S. tax advisor or tax preparer to file, if necessary, amended U.S. tax returns pursuant to the IRS's Voluntary Disclosure Program," UBS wrote.


WHat a joke

Ya, I caught that also... if its "VOLUNTARY", whats the problem? Why are
they wasting tax dollars on "voluntary" compliance?

 

[ShannonOBrien]

If the U.S. Gov gets a warrant, the Swiss banks will let them have access to the accounts. I looked into a Swiss bank account once and found this out. The IRS just doesn't want to get a warrant because they probably don't have probable cause. I never did get a Swiss account. They want you to have a LOT of money to open one.

 

[rapidtrends]

The Swiss have laws that forbid them from disclosing a clients information. I dont envision them changing these laws any time soon just to placate the IRS.

UBS does not = Switzerland.

The account closings are simply a way of UBS "saying" they are complying with the IRS as to not ruffle feathers, but they are not disclosing account information of "current" clients.

What they are doing, is placating the IRS by closing all accounts smaller than $50k. Before they do this of course, they warn the clients, so the clients can move the funds.

After the funds are moved, and the accounts closed, UBS can then turn over info, as they are technically no longer clients.

If the IRS wants info on a current client, they would have to get a warrant approved through the highest court in Switzerland, but my guess is any funds would be long gone before a warrant was ever granted.

I would not assume all Swiss firms are under the thumb of the US Gov...thats simply inaccurate.

UBS, having legal structure and office in the US can easily be screwed to the wall by the IRS.

Not all Swiss firms are public, and not all of them have offices or legal structure in the USA.

There is over $4.7 Trillion USD in private accounts held with the Swiss by people and firms from all over the world.

Alot more going on there than meets the eye.

 

[weatherbill]

the IRS is ana gent of the federal reserve. the fed is an agent of private central bankers who onw it. The same banksters own the meida and bought it up back at the crash time of 1929.

self serving interest is at work here. they will release all kinds of media to pressure people, so they can stop the loop hole here. They also release this kind of media to scare people...... this is a total social engineering at work becasue the income tax is illegal in the first place, proven by the US Constitution article 1 sections 2 and 9......however, if this is corporate profits, then they are under the irs jurisdiction, but your hard manual labor is not under IRS jurisdiction..... it is your right to labor and rights unde rlaw cannot be taxed, only privilages. It is a privilage to operate a corporation, so it is usually these people who have the big money anyways. Us little people I don't think are worth the IRS' time, especially after legal fees if one were to put up a fight with them and of course, proving them wrong in many ways, The Constitution article 1 sections 2 and 9, the right to labor, the 16th amendment was never legally ratified. SInce all right are inherantly born with, and cannot be taxed, the right to labor is the same as the right to bare arms as well as the right to free speech. No one would argue for a tax on the right to free speech, so why on your God given right to labor??? WHY???? It is because they want your slave labor for the state, so politicians can spend into oblivion for their socialism and war monger maintenance of the 200 overseas military bases in defense of the fraudulant petrodollar. that's really the bottom line to it all.

 

[Zippyjuan]

Actually the IRS is part of the Treasury- not the Fed.
And the US Supreme Court has ruled that the 16th Amendment is valid- even if you chose to disagree with it.
http://query.nytimes.com/gst/abstract.html?res=9D04E1DE103DE333A25756C2A9679C946796D6CF

but your hard manual labor is not under IRS jurisdiction..... it is your right to labor and rights unde rlaw cannot be taxed,

Can you support this? Any links?
Is labor a right?
If it is, then everybody should have the right to a job and there should be no unemployment.
Is labor under the IRS jurisdiction or not? (courts rule it is).
Where does it say that rights cannot be taxed?

 

[Danke]

Actually the IRS is part of the Treasury- not the Fed.
And the US Supreme Court has ruled that the 16th Amendment is valid- even if you chose to disagree with it.
http://query.nytimes.com/gst/abstract.html?res=9D04E1DE103DE333A25756C2A9679C946796D6CF


Can you support this? Any links?
Is labor a right?
If it is, then everybody should have the right to a job and there should be no unemployment.
Is labor under the IRS jurisdiction or not? (courts rule it is).
Where does it say that rights cannot be taxed?

The 16th Amendment did not create a tax on the fruit of one's labor; if that is where you are trying to go with the above linkage.

You don't have a right to a job, but you do have the right to work and provide for yourself. You certainly don't have the right to make others work and provide for you, which is what you are proposing with your so-called IRS jurisdiction over labor.

 

[HOLLYWOOD]

The Swiss have laws that forbid them from disclosing a clients information. I dont envision them changing these laws any time soon just to placate the IRS.

UBS does not = Switzerland.

The account closings are simply a way of UBS "saying" they are complying with the IRS as to not ruffle feathers, but they are not disclosing account information of "current" clients.

What they are doing, is placating the IRS by closing all accounts smaller than $50k. Before they do this of course, they warn the clients, so the clients can move the funds.

After the funds are moved, and the accounts closed, UBS can then turn over info, as they are technically no longer clients.

I would not assume all Swiss firms are under the thumb of the US Gov...thats simply inaccurate.

UBS, having legal structure and office in the US can easily be screwed to the wall by the IRS.

There is over $4.7 Trillion USD in private accounts held with the Swiss by people and firms from all over the world.

Alot more going on there than meets the eye.

So once again... The IRS/TREASURY/US Federal Government is taking on the "SMALL FRYs"... the ultra rich may embarass governments and politicians, wealth and elitists, corporate tyrants. Just go after the small ones that don't have the money tied to government or politicians.

The lesser wealth can't FIGHT the costly court wars against the US Treasury/IRS and the less $50K & less crowd usually can't IMPLICATE like the ultra wealth, since the UW's are the ones that run everything!

 

[rapidtrends]

So once again... The IRS/TREASURY/US Federal Government is taking on the "SMALL FRYs"... the ultra rich may embarass governments and politicians, wealth and elitists, corporate tyrants. Just go after the small ones that don't have the money tied to government or politicians.

The lesser wealth can't FIGHT the costly court wars against the US Treasury/IRS and the less $50K & less crowd usually can't IMPLICATE like the ultra wealth, since the UW's are the ones that run everything!

Hmm.

Pretty much so.

Yep.

 

[kathy88]

There's always the Camans.