Woman Convicted of Tax Evasion in Smallest Case Stemming from Government Crackdown on Offshore Accounts

Our tax attorneys noted a recent case in which a woman is accused of hiding $750,000 in an offshore bank account set up by her father with Swiss banking giant UBS AG.

Too often people think Swiss bank account problems only impact the very wealthy. In fact, they impact those in all walks of life. In many cases, those who are less well-versed in banking and tax laws may be more prone to exposing themselves to offshore tax fraud allegations.

The North Jersey Record reported that the 42-year-old woman’s 2005 tax return omitted interest, dividend and capital gains income from the Swiss account. The fund was reportedly opened in her name by her father. The government accuses her of using it to avoid IRS reporting requirements.

The Record reports her 67-year-old father admitted to opening UBS accounts in 1992 and 2000 and funding them with more than $1 million skimmed from his printing business. The tax evasion charges stem from the crackdown on offshore bank accounts announced last year by the U.S. Department of Justice and the Internal Revenue Service.

UBS, Switzerland’s largest bank, paid a $780 million fine and turned over the names of American account holders to the U.S. government in order to avoid prosecution.

This case is the smallest thus far brought to court by prosecutors. The defendant admitted to failing to report $9,942 in income on her tax return. She faces up to three years in prison at her sentencing Feb. 28. Her father faces up to five years in prison at his sentencing in March.

If you are facing criminal charges for tax evasion or charges in connection with offshore bank accounts, contact the tax attorneys at the Brager Tax Law Group, A.P.C. for a confidential appointment to discuss your rights. Call 310-208-6200.