James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Judge Authorizes IRS to Seek Bank Records From UBS
Author: James F. McDonough
Date: February 1, 2013
Key Contacts
Back
The IRS is within its rights to request financial records from UBS of U.S. taxpayers suspected of hiding their income in accounts with Swiss bank Wegelin, a court ruled.
U.S. District Judge William Pauley granted the Internal Revenue Service a motion to issue a “John Doe” summons – which requests information about possible tax fraud committed by individuals whose identities are not known – on UBS. Following the guilty plea and subsequent closure of Switzerland’s oldest bank Wegelin, which admitted to helping U.S. clients skirt their U.S. tax law obligations, Pauley said that the IRS request was valid, as many UBS taxpayers may have hidden their income at Wegelin and other Swiss banks.
Following the ruling, a UBS spokesperson that the bank would comply with the request, and offer up information on U.S. clients. However, it noted that it would only provide U.S. records, not Swiss ones, to the federal tax agency, according to Reuters.
Although UBS was previously absolved of its own tax law violations in 2009 after it admitted to helping Americans evade taxes and agreed to a $780 million settlement, its association with Wegelin has put it back in the spotlight. Wegelin pleaded guilty on January 3 to helping U.S. clients hide income in secret accounts, and became the first foreign bank to be indicted by the U.S. A spokesman for the bank also raised eyebrows and make other banks nervous when he admitted that facilitating tax evasion was a common practice among many financial institutions. The 271-year-old institution agreed to pay $57.8 million in fines.
Wegelin is just the latest bank on the list of Swiss institutions the IRS is examining in connection with tax evasion as it seeks to crackdown on the misuse of offshore accounts and close the federal tax gap.
- Practices: Tax and Trusts & Estates, Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
Author: Marc J. Comer
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.