Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
IRS Summons Wells Fargo to Release Information on Americans with Foreign Accounts
Author: Scarinci Hollenbeck, LLC
Date: May 15, 2013
Key Contacts
Back
A federal court in San Francisco has authorized the Internal Revenue Service to issue a John Doe summons to Wells Fargo for information on Americans with Foreign accounts at Canadian Imperial Bank of Commerce FirstCaribbean International Bank (FCIB).
The FCIB is based in Barbados, has 18 branches in the Caribbean, according to Forbes. However, the institution holds a correspondent account through Wells Fargo, giving the IRS authority to monitor transactions, particularly in cases of potential wrongdoing. Senior District Judge Thelton Henderson signed the order, which will allow the IRS to identify U.S. taxpayers with accounts at the FCIB that were held from January 1, 2004, to December 31, 2012. A John Doe summons is generally used by the IRS to obtain information about possible federal tax law violations by individuals whose identities are unknown, according to AccountingToday.
The IRS has claimed that an undisclosed number of U.S. taxpayers who hold accounts with FCIB are using the accounts to hide income and avoid compliance with U.S. tax laws, Forbes reports. However, more than 120 account holders have already come forward and enrolled in the voluntary disclosure program to avoid prosecution.
“This John Doe summons is a visible indication of how we are using the many tools available to us to pursue this activity wherever it is occurring,” said Kathryn Keneally, assistant attorney general for the tax division of the Justice Department, AccountingToday reports. “Those who are still hiding should get right with their country and their fellow taxpayers before it is too late.”
The IRS has made sweeping efforts in recent years to detect Americans who evade taxes through the use of offshore accounts. While budget cuts may lower the number of audits for middle-income U.S. taxpayers, it is unlikely to affect efforts to curb tax law violations committed by wealthy Americans and corporate entities.
- Practices: Tax and Trusts & Estates
- 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
New Jersey’s Next Manufacturing Tax Credit: Stability Secured, Timing Matters
A Settled Regulatory Environment Enables Confident Capital Planning New Jersey’s new manufacturing incentive program, Next New Jersey Manufacturing Program, enters 2026 with something uncommon in economic development these days: policy stability. The statute is enacted, New Jersey Economic Development Authority’s (“NJEDA”) rules are adopted, and the application portal is open. With the election outcome settled, […]
Author: Michael J. Sheppeard
A Simple Guide to Industry Roll-Up Acquisitions
When done successfully, industry roll-up acquisitions can dramatically grow and strengthen your business. In this post, we break down what an industry roll-up is, why companies pursue it, and what makes it an effective (and sometimes risky) business strategy. What Is an Industry Roll-Up Acquisition? In an industry roll-up acquisition of companies, a buyer acquires multiple companies […]
Author: Dan Brecher
Genesis Mission: How the U.S. Government’s New AI Platform Will Reshape Corporate Innovation, Risk, and Competition
The federal government has launched one of the most ambitious scientific initiatives in decades, and it will redefine how companies develop technology, manage risk, and compete. The Genesis Mission, created by Executive Order and driven by the Department of Energy (“DOE”), is intended to accelerate scientific discovery through a national AI platform that links supercomputers, […]
Author: Michael J. Sheppeard
Stablecoins and the GENIUS Act: How New Global Rules Are Reshaping Compliance
Stablecoins Leave the Grey Zone Stablecoins were supposed to be the “boring” part of crypto: digital dollars that just work. Yet for years they have lived in a regulatory no-man’s-land, classified one day as securities, the next as commodities, and sometimes as something regulators had not even named yet. That uncertainty is finally starting to […]
Author: Bryce S. Robins
Don’t Overlook the Importance of Business License Management
If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]
Author: Dan Brecher
Failing to Comply With NJ Rent Control Exemption May Prove Costly
What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing. A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]
Author: Patrick T. Conlon
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.