In an unprecedented crack in Switzerland”™s tradition of private banking, UBS AG formally agreed to surrender account details of nearly 4,500 wealthy customers in the United States to the Internal Revenue Service, which the IRS had sought as part of a probe into potential tax evasion by U.S. citizens.
Based in Switzerland, UBS is among Fairfield County”™s largest employers with more than 4,000 employees in Stamford. The company also operates wealth-management offices in Greenwich, Stamford, Westport, and White Plains in Westchester County.
UBS plans to send notices to affected account holders encouraging them to voluntarily disclose their UBS account information; the IRS has been allowing customers to disclose their information program through Sept. 23 to avoid prosecution.
The IRS said it will examine accounts for potential tax violations, including failure to file a report of foreign bank and financial accounts (FBAR). The penalty for failing to file an FBAR is up to half the value of an account for each year the form is not filed. The IRS said it would seek criminal prosecutions in cases it deemed appropriate.
“This agreement helps resolve one of UBS”™ most pressing issues,” said Kaspar Villiger, chairman of UBS, in a statement. “I am confident that the agreement will allow the bank to continue moving forward to rebuild its reputation through solid performance and client service.”
