IRS Pressures Swiss Banks for Information

August 11, 2009

Swiss banks have long had the reputation of protecting the identities and assets of their international patrons. They have been used by millionaires and criminals to hide money, art and memorabilia. However, the United States government and the Internal Revenue Service are now putting pressure on the banks to release some of its information.

The problem is that many Americans are hiding their assets in Swiss bank accounts, so that their funds cannot be taxed by the U.S. government. If the IRS cannot find the money, they cannot levy taxes.

The IRS is now threatening American citizens with jail time if they do not declare the assets that they have hidden away. Previous threats of back taxes and fines have not made any difference, so the IRS has asked for the names on more than 52,000 accounts. Americans are now scrambling to move their assets and pay the necessary fines to avoid jail time.