Private Wealth Services Partner Kevin E. Packman was as a source in the Investment News article "Offshore Banking On Endangered List" on August 31.
The article discussed the ramifications of the UBS AG tax evasion case on U.S. citizens and financial advisers involved with offshore accounts. Such accounts are common among many Americans with high net worth and are legal, so long as they are reported to the Internal Revenue Service and appropriate taxes are paid.
UBS, a bank located in Switzerland, released information sought by the IRS on 4,450 client accounts in a lawsuit with the U.S. government settled earlier this year. This case indicates a widespread crackdown by the IRS to pursue American citizens who do not submit proper financial information to the U.S. government and even financial advisers who help them create offshore accounts. "Absolutely, advisers will be included," Mr. Packman said, referring to possible legal consequences handed down by the government. "They're shaking the trees and UBS, and other big institutions are first. Financial advisers are next."