Monday, March 30, 2015

Bank Leumi Turns Over the Names of 1,500 US Taxpayers.

We previously posted "Bank Leumi to Face $300 Million Settlement Option to Close an Investigation Regarding Their Aiding Americans to Evade Taxes:" now we know that Bank Leumi's non-prosecution deal with the US Department of Justice requires it to also disclose the identities of 1,500 American account holders to the Internal Revenue Service. US citizens with undisclosed accounts at the Israeli bank may now be at risk of civil penalties, prosecution and disqualification from the US' offshore voluntary disclosure program.  

On December 22, 2014, the Bank Leumi Group reached agreements with the United States Department of Justice (DoJ) and the New York Department of Financial Services (DFS), respectively, which bring to an end investigations into allegations that the Bank Leumi Group assisted certain U.S. customers with evading taxes during the years 2002 through 2010. 

Leumi reported that it is the first Israeli bank to reach a settlement with U.S. authorities. The agreement with the DoJ requires the Bank Leumi Group to pay a fine of $270 million. The agreement with the DFS requires the Bank Leumi Group to pay a fine of $130 million. As part of the DoJ agreement, the Bank Leumi Group has provided to the Internal Revenue Service (IRS) the names of more than 1,500 U.S. account holders.

U.S. persons with undisclosed accounts at Bank Leumi (and others) face potentially stiff financial consequences and, in some cases, the risk of prison. 

There are many unknowns in this new environment (e.g., which individuals are among the 1,500 disclosed accounts, who will be exposed to criminal prosecution, what the civil penalties will be in the civil examinations, will the streamlined programs be available, etc.). However, one thing is apparent: The U.S. government will likely be relentless in its pursuit of U.S. persons with undisclosed accounts, and those who defer disclosure may face ever-increasing adverse consequences. 

Have Un-Reported Income From a Bank Leumi 
Offshore Bank Account?

Protect Yourself from 325% Fines and Possible Jail Time. 

Contact Our Experienced Tax Attorneys to Find out
if the OVDP Program or Streamline Program is Right for You?

Contact the Tax Lawyers at
Marini & Associates, P.A.
for a FREE Tax Consultation Contact US at
or Toll Free at 888-8TaxAid (888 882-9243)

Source :

Duane Morris

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