Tuesday, September 1, 2009
IRS Hold 'Em
"The [IRS] is staging a massive poker game. It has invited 52,000 UBS AG account holders to the table. ... Or do they stay quiet, hoping to avoid detection, but risk far greater penalties or even criminal prosecution if exposed to authorities? ... One factor in play: The IRS only has the resources to prosecute about 1,000 criminal tax cases each year. 'I'm surprised at how many are willing to gamble,' said Kevin Packman of Holland & Knight in Miami. ... Coming forward to the IRS has its hazards. The agency is offering a special voluntary disclosure program to holders of any offshore accounts that promises a measure of clemency to those who report before Sept. 23", Laura Saunders at the WSJ, 14 August 2009, link: http://online.wsj.com/article/SB125020653689430645.html.
I'm not surprised few people came forward. The IRS is very limited in the number of prosecutions it can bring. Look at Olenicoff, my 20 May 2008 post: http://skepticaltexascpa.blogspot.com/2008/05/sentencing-snipes-2.html. I think the IRS is holding a pair of dueces in this game of "Texas Hold 'Em" with the UBS account holders.