The Department of Justice allows banks who helped facilitate tax evasion to resolve potential criminal liability through participation in the Swiss Bank Program.  Four banks have now signed agreements with the DOJ.  Chief Richard Weber for the IRS-Criminal Investigation (CI) indicates that the fact these four banks have entered into agreements signals “a change in terrain for offshore banking.”  He warns: “No longer is it safe to hide money offshore and expect that it will not be discovered.  IRS CI Special Agents will continue to follow the money to find those who circumvent the offshore disclosure laws and hold them accountable.”

The Swiss Bank Program created by the Department of Justice is an attractive offer to offshore banks.  Banks that come forward voluntarily to provide information on activities related to tax evasion can avoid being prosecuted for tax crimes or for monetary transaction offenses under Titles 18, 26, and 31 of the U.S. code.  The banks will have to pay fines, but they will not be prosecuted for their activities and the fines will be more limited than the money the banks would likely need to turn over in forfeiture, restitution and other penalties if prosecuted criminally. 

The United States Senate may be the only thing standing in the way of your Swiss bank facing the maximum pressure to provide information about your personal account details to the tax enforcement division of the Department of Justice (DOJ).  

The Department of Justice and U.S. authorities have been going after offshore banks that are suspected of helping accountholders in the United States to evade their tax obligation.  Banks that believe they could be criminally prosecuted but that are not yet under investigation can head off criminal charges by coming forward voluntarily in order to participate in the DOJ’s Swiss Bank Program.  Finter Bank, a Zurich bank, has become the latest bank to sign a non-prosecution agreement through the Swiss Bank Program. 

Kevin E. Thorn, the founding member and managing partner of Thorn Law Group, was recently featured in a Wall Street Journal article as a leading attorney in the DC region.   The publishers of the August 3, 2015 Capital Region’s Premier Lawyers’ Supplement recognized the achievements of fifteen leading firms in the DC metro area, including the DC-based Thorn Law Group.   This special Supplement noted that Thorn’s extensive tax law experience and background as a former IRS attorney makes him the “ultimate insider on tax matters for the D.C., Maryland and Virginia area.”