Thursday, July 5, 2012

IRS Targets Israeli Banks and Their US Client

On June 14, the Department of Justice unsealed an indictment against three American tax preparers for helping clients avoid taxes by moving money to Israel.
The transgressions detailed in the indictment were relatively small. The indictment said the father and son David and Nadav Kalai and their colleague David Almog at a firm called United Revenue Service helped several clients duck taxes by moving money to two Israeli banks, identified only as “Bank A” and “Bank B.”

The indictment revealed the existence of a grand jury that is almost surely going after much bigger fish. And the details provided in it appear to suggest that “Bank A” is Bank Leumi, whose private banking operation is headquartered in Tel Aviv, and“Bank B” is Bank Hapoalim, which also maintains its global private banking center in Israel’s second-biggest city.”

Because tax evasion is a felony in Israel and because the US has a treaty with Israel; this offense is an extraditable offense in Israel. Now will Israel refuse to hand over a dual citizen? The state of Israel was certainly not created to protect Jews from crimes of international tax evasion. More importantly, the US is Israel’s only real ally in the world. So do not be surprized if Israel hands over those dual citizens that the Department of Justice (DOJ) suspects of tax evasion.

If you have an undisclosed account in Israel, contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at or or Toll Free at 888-8TaxAid (888 882-9243).

Remember, the FBAR Offshore Voluntary Disclosure Process (OVDI) program is most likely available — Even if your bank, even if your personal banker is under investigation, the program is still available as long as YOU are not personally under audit or investigation by the IRS.

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