What Romney's Hiding: 'It's the Amnesty, Stupid' - Swiss Bank/UBS Amnesty Deal of 09', Remember? Last edited Mon Sep 24, 2012, 11:22 AM - Edit history (1)



What Romney's Hiding: 'It's the Amnesty, Stupid'



Why does the press feign puzzlement about what Romney is hiding by not revealing his 2009 tax returns?



He has already revealed the extent of his foreign bank accounts, the approximate amount of his holdings and two years of taxes that are less than the middle class pays. Even if he had paid zero in some years, that is already baked into the political cake.



His disclosure of his 2010 account omitted information about his Swiss bank account at the Union Bank of Switzerland (UBS). Why is the press not asking for this form? UBS was fined $760 million for putting Americans into abusive tax shelters and forced to reveal more than 4000 Americans who banked with them under numbered accounts.



The 4000+ Americans who were exposed by UBS were offered amnesty from criminal prosecution for tax evasion if they closed their Swiss Account, recalculated and paid all back taxes and paid a 25 percent penalty on the largest amount.



Romney closed his UBS account in the time required. He did not close his other foreign accounts.



With strong circumstantial evidence (see below), should not the press be peppering Romney with questions about amnesty, and, if he says no, ask him for any alternative explanation why he closed the UBS account, why he did it at that time, and whether he would allow the IRS Commissioner to verify, or not, that Romney is telling the truth?



more: Why does the press feign puzzlement about what Romney is hiding by not revealing his 2009 tax returns?He has already revealed the extent of his foreign bank accounts, the approximate amount of his holdings and two years of taxes that are less than the middle class pays. Even if he had paid zero in some years, that is already baked into the political cake.His disclosure of his 2010 account omitted information about his Swiss bank account at the Union Bank of Switzerland (UBS). Why is the press not asking for this form? UBS was fined $760 million for putting Americans into abusive tax shelters and forced to reveal more than 4000 Americans who banked with them under numbered accounts.The 4000+ Americans who were exposed by UBS were offered amnesty from criminal prosecution for tax evasion if they closed their Swiss Account, recalculated and paid all back taxes and paid a 25 percent penalty on the largest amount.Romney closed his UBS account in the time required. He did not close his other foreign accounts.With strong circumstantial evidence (see below), should not the press be peppering Romney with questions about amnesty, and, if he says no, ask him for any alternative explanation why he closed the UBS account, why he did it at that time, and whether he would allow the IRS Commissioner to verify, or not, that Romney is telling the truth?more: http://www.huffingtonpost.com/paul-abrams/what-romneys-hiding-its-t_b_1908104.html



also:



Matthew Yglesias, Slate 7/17/2012:



Did Mitt Romney Take the 2009 Swiss Bank Account Amnesty



When attempting to engage in baseless speculation over what it is that's in Mitt Romney's tax statements that's so embarassing he'd rather take the heat for non-disclosure, I think it's important to remember that he was actively running for president in 2007 and 2008. That means it's relatively unlike he was doing anything during those years that he thought couldn't withstand scrutiny. So why not release a nice even five years of tax data? Perhaps because of something that happened in 2009.



Something like this:



Wealthy U.S. taxpayers, concerned about an Internal Revenue Service crackdown on the use of secret overseas bank accounts as tax havens, are rushing to meet a Thursday deadline to disclose those accounts or face possible criminal prosecution. The concern was triggered this summer when Switzerland's largest bank, caught up in an international tax evasion dispute, said it would disclose the names of more than 4,000 of its U.S. account holders.

The decision shattered a long-held belief that Swiss banks would guard the identities of its American customers as carefully as they did their money, and it raised concern that other international tax havens might be next. Under an amnesty program, the IRS is allowing taxpayers to avoid prosecution for having failed to report their overseas accounts. As a result, tax attorneys across the nation have been besieged by wealthy clients who are lining up to apply even though they will still face big financial penalties.

Romney might well have thought in 2007 and 2008 that there was nothing to fear about a non-disclosed offshore account he'd set up years earlier precisely because it wasn't disclosed. But then came the settlement and the rush of non-disclosers to apply for the amnesty. Failing to apply for the amnesty and then getting charged by the IRS would have been both financially and politically disastrous. So amnesty it was. But even though the amnesty would eliminate any legal or financial liability for past acts, it would hardly eliminate political liability.



More: When attempting to engage in baseless speculation over what it is that's in Mitt Romney's tax statements that's so embarassing he'd rather take the heat for non-disclosure, I think it's important to remember that he was actively running for president in 2007 and 2008. That means it's relatively unlike he was doing anything during those years that he thought couldn't withstand scrutiny. So why not release a nice even five years of tax data? Perhaps because of something that happened in 2009.Something like this:Wealthy U.S. taxpayers, concerned about an Internal Revenue Service crackdown on the use of secret overseas bank accounts as tax havens, are rushing to meet a Thursday deadline to disclose those accounts or face possible criminal prosecution. The concern was triggered this summer when Switzerland's largest bank, caught up in an international tax evasion dispute, said it would disclose the names of more than 4,000 of its U.S. account holders.The decision shattered a long-held belief that Swiss banks would guard the identities of its American customers as carefully as they did their money, and it raised concern that other international tax havens might be next. Under an amnesty program, the IRS is allowing taxpayers to avoid prosecution for having failed to report their overseas accounts. As a result, tax attorneys across the nation have been besieged by wealthy clients who are lining up to apply even though they will still face big financial penalties.Romney might well have thought in 2007 and 2008 that there was nothing to fear about a non-disclosed offshore account he'd set up years earlier precisely because it wasn't disclosed. But then came the settlement and the rush of non-disclosers to apply for the amnesty. Failing to apply for the amnesty and then getting charged by the IRS would have been both financially and politically disastrous. So amnesty it was. But even though the amnesty would eliminate any legal or financial liability for past acts, it would hardly eliminate political liability.More: http://www.slate.com/blogs/moneybox/2012/07/17/romney_s_tax_returns_is_the_2009_swiss_bank_account_amnesty_what_he_doesn_t_want_us_to_see_.html



and:



Kim Dixon, Reuters 9/18/2009



UBS warns U.S. clients as tax amnesty nears end



A UBS letter obtained by Reuters tells clients their accounts fall under a deal signed in August that ended a long-running dispute with the U.S. government over off-shore assets of U.S. clients.



The letter lands in the mailboxes of rich Americans as they decide whether to participate in the U.S. Internal Revenue Service's amnesty program -- a chance to reveal income in tax havens such as Switzerland, Cayman Islands and Monaco while generally avoiding prosecution.



Lawyers said the UBS letters have been received by a cross section of clients -- even those with relatively modest assets of under $1 million.



"Everybody who was coming to my office last week, said 'it's not going to be me,'" said Bryan Skarlatos, a tax lawyer at Kostelanetz & Fink in New York.



In exchange for coming clean by the September 23 deadline, individuals pay back taxes and a reduced fine, while generally avoiding criminal charges.



After months of tortuous negotiations that involved the Swiss government and challenged the country's tradition of banking secrecy, UBS agreed in August to disclose the names of 4,450 American holders of secret accounts at UBS.



The letter obtained by Reuters said the IRS is seeking information about those with direct accounts at UBS in Switzerland and those who owned accounts indirectly through an off-shore company. The letter was dated September 10.



William Sharp, an attorney at Sharp Kemm in Tampa, Florida, who represents American clients of UBS and was in Switzerland this week, said UBS transferred the first 500 files to Swiss authorities on September 11.



When the IRS amnesty program expires, tax cheats face more costly penalties as well as possible criminal prosecution.



"These people are panicking," said Paul Behling, a lawyer with Withers Bergman, a firm working on about 300 such cases worldwide. "Basically it's a rush for them."



UBS' four-page letter spelled out a process it said may "ultimately result in the submission of your account documents ... to the IRS (U.S. Internal Revenue Service) and the loss of the opportunity to participate in the IRS Voluntary Disclosure program."



The letter advises clients they have 20 days to hire a representative, or be assigned one by Swiss authorities who will be processing the names. It gives them a choice of having UBS act as their agent as well.



The IRS refuses to say how many tax amnesty applications have been filed. However, the agency did say that during a single week in July, about 400 individuals turned themselves in under the program, four times higher than the number of tax evaders coming forward in all of 2008.



more: A UBS letter obtained by Reuters tells clients their accounts fall under a deal signed in August that ended a long-running dispute with the U.S. government over off-shore assets of U.S. clients.The letter lands in the mailboxes of rich Americans as they decide whether to participate in the U.S. Internal Revenue Service's amnesty program -- a chance to reveal income in tax havens such as Switzerland, Cayman Islands and Monaco while generally avoiding prosecution.Lawyers said the UBS letters have been received by a cross section of clients -- even those with relatively modest assets of under $1 million."Everybody who was coming to my office last week, said 'it's not going to be me,'" said Bryan Skarlatos, a tax lawyer at Kostelanetz & Fink in New York.In exchange for coming clean by the September 23 deadline, individuals pay back taxes and a reduced fine, while generally avoiding criminal charges.After months of tortuous negotiations that involved the Swiss government and challenged the country's tradition of banking secrecy, UBS agreed in August to disclose the names of 4,450 American holders of secret accounts at UBS.The letter obtained by Reuters said the IRS is seeking information about those with direct accounts at UBS in Switzerland and those who owned accounts indirectly through an off-shore company. The letter was dated September 10.William Sharp, an attorney at Sharp Kemm in Tampa, Florida, who represents American clients of UBS and was in Switzerland this week, said UBS transferred the first 500 files to Swiss authorities on September 11.When the IRS amnesty program expires, tax cheats face more costly penalties as well as possible criminal prosecution."These people are panicking," said Paul Behling, a lawyer with Withers Bergman, a firm working on about 300 such cases worldwide. "Basically it's a rush for them."UBS' four-page letter spelled out a process it said may "ultimately result in the submission of your account documents ... to the IRS (U.S. Internal Revenue Service) and the loss of the opportunity to participate in the IRS Voluntary Disclosure program."The letter advises clients they have 20 days to hire a representative, or be assigned one by Swiss authorities who will be processing the names. It gives them a choice of having UBS act as their agent as well.The IRS refuses to say how many tax amnesty applications have been filed. However, the agency did say that during a single week in July, about 400 individuals turned themselves in under the program, four times higher than the number of tax evaders coming forward in all of 2008.more: http://www.reuters.com/article/2009/09/18/us-ubs-taxletter-idUSTRE58H3FZ20090918



this is about the UBS whistleblower... He was released from prison this August and the IRS just awarded him $104m a couple weeks ago?



DAVID KOCIENIEWSKI, New York Times 9/11/2012



Whistle-Blower Awarded $104 Million by I.R.S.



Bradley C. Birkenfeld, a former banker at UBS, recently served two and a half years in prison for conspiring with a wealthy California developer to evade United States income taxes.



But Mr. Birkenfeld, 47, has a lot to show for his time and effort: The Internal Revenue Service acknowledged on Tuesday that information he had provided was so helpful that he would receive a $104 million whistle-blower award for revealing the secrets of the Swiss banking system.



By divulging the schemes that UBS used to encourage American citizens to dodge their taxes, Mr. Birkenfeld led to an investigation that has greatly diminished Switzerlands status as a secret haven for American tax cheats and allowed the Treasury to recover billions in unpaid taxes.



In addition to paying $780 million in 2009 to avoid criminal prosecution, the bank turned over account information regarding more than 4,500 American clients.



The disclosure of Swiss banking information  which caused a fierce political debate in Switzerland before winning approval from the countrys Parliament  set off such a panic among wealthy Americans that more than 14,000 of them joined a tax amnesty program. I.R.S. officials say the amnesty program has helped recover more than $5 billion in unpaid taxes.



Mr. Birkenfelds award, the largest ever paid by the I.R.S., is also a milestone for the agencys whistle-blower program, which offers informants rewards of up to 30 percent of any fines and unpaid taxes recouped by the government.



-snip-



Mr. Birkenfeld is an unlikely crusader for tax fairness. A native of Massachusetts who studied banking at the American Graduate School of Business in Switzerland, he spent five years recruiting American clients for UBS  which managed some $20 billion in assets for Americans  before reporting the banks schemes to the Treasury Department. Mr. Birkenfeld also admitted in court that he once smuggled diamonds for a client in a tube of toothpaste.



He said he learned in 2005 that the banks advice to clients was illegal, and after reporting it to the UBS compliance office to no avail, he decided to become a government informant.



During the investigation Mr. Birkenfeld was charged with fraud for withholding crucial information from federal investigators, including details of his top client, the property developer Igor Olenicoff. Mr. Birkenfeld was sentenced to 40 months in prison, and was released early on Aug. 1.



more: Bradley C. Birkenfeld, a former banker at UBS, recently served two and a half years in prison for conspiring with a wealthy California developer to evade United States income taxes.But Mr. Birkenfeld, 47, has a lot to show for his time and effort: The Internal Revenue Service acknowledged on Tuesday that information he had provided was so helpful that he would receive a $104 million whistle-blower award for revealing the secrets of the Swiss banking system.By divulging the schemes that UBS used to encourage American citizens to dodge their taxes, Mr. Birkenfeld led to an investigation that has greatly diminished Switzerlands status as a secret haven for American tax cheats and allowed the Treasury to recover billions in unpaid taxes.In addition to paying $780 million in 2009 to avoid criminal prosecution, the bank turned over account information regarding more than 4,500 American clients.The disclosure of Swiss banking information  which caused a fierce political debate in Switzerland before winning approval from the countrys Parliament  set off such a panic among wealthy Americans that more than 14,000 of them joined a tax amnesty program. I.R.S. officials say the amnesty program has helped recover more than $5 billion in unpaid taxes.Mr. Birkenfelds award, the largest ever paid by the I.R.S., is also a milestone for the agencys whistle-blower program, which offers informants rewards of up to 30 percent of any fines and unpaid taxes recouped by the government.-snip-Mr. Birkenfeld is an unlikely crusader for tax fairness. A native of Massachusetts who studied banking at the American Graduate School of Business in Switzerland, he spent five years recruiting American clients for UBS  which managed some $20 billion in assets for Americans  before reporting the banks schemes to the Treasury Department. Mr. Birkenfeld also admitted in court that he once smuggled diamonds for a client in a tube of toothpaste.He said he learned in 2005 that the banks advice to clients was illegal, and after reporting it to the UBS compliance office to no avail, he decided to become a government informant.During the investigation Mr. Birkenfeld was charged with fraud for withholding crucial information from federal investigators, including details of his top client, the property developer Igor Olenicoff. Mr. Birkenfeld was sentenced to 40 months in prison, and was released early on Aug. 1.more: http://www.nytimes.com/2012/09/12/business/whistle-blower-awarded-104-million-by-irs.html?_r=0 Paul Abrams, Huff Post 9/23/2012:also:Matthew Yglesias, Slate 7/17/2012:and:Kim Dixon, Reuters 9/18/2009this is about the UBS whistleblower... He was released from prison this August and the IRS just awarded him $104m a couple weeks ago?DAVID KOCIENIEWSKI, New York Times 9/11/2012 74 Tweet