Tax evaders rush to beat amnesty deadline

http://news.yahoo.com/s/nm/20090914/...bs_tax_evasion

WASHINGTON (Reuters) – Rich Americans who have evaded taxes by hiding foreign holdings have about a week to turn themselves in to an Internal Revenue Service amnesty program or gamble they will not be caught.

U.S. citizens with undeclared assets in tax havens such as Switzerland face a September 23 deadline to reveal their holdings, pay a fine and generally avoid criminal prosecution. When that amnesty program expires, any tax cheats found by the government could face criminal prosecution.

The IRS expects to find some tax evaders soon. UBS AG, the Swiss banking giant, agreed to hand over to the IRS the names of about 4,450 secret accounts as part of a court settlement reached last month.

"This is sort of their last, best chance if they are going to get off with lenient treatment," said Evan Stewart, a regulatory lawyer at the firm Zuckerman Spaeder.

"If you're sitting there and you've sheltered $50 million from the U.S. government, are you willing to gamble with the (list of) 4,500 (names) and live in terror for a year?" Stewart said.

The IRS said that, in one week of July, about 400 individuals turned themselves in under the amnesty program. That was four times higher than the number of tax evaders who stepped forward in all of 2008, according to the agency.

But I've paid taxes on it.

I did notice they didn't report it to them though.

Somehow I think the IRS may be disappointed.

to pay all that we owe even though most scrape by as is. Correct me if I misunderstand their situation.

they still mostly have to pay what they owe plus penalties due. But I think the not paying "all" part was that instead of 50% of highest investments in the past 3 years, they are only requiring a lesser percent, but for stuff over 6 years. This is only for those who turn themselves in though. Those who don't, look out!

Some details: http://www.nytimes.com/2009/03/27/business/27tax.html