Wealthy clients of UBS (UBS), who used the Swiss bank to hide assets overseas, are in a state of panic, now that the IRS is going after them.
See, here’s the deal: If they fess up, they just pay their back taxes and that’s that. But if they try to keep up the evasion than they’ll pay a “heavier price later”. Ominous!
WSJ: …lawyers say they have been flooded by frantic calls from wealthy clients wondering whether to turn themselves in — and, if so, how. “One woman was very scared. She was in tears,” says Bryan Skarlatos, a lawyer at Kostelanetz & Fink in New York and chairman of the American Bar Association tax section’s committee on civil and criminal tax penalties. On the ride back to New York from a tax conference in Galloway, N.J., last Friday, Mr. Skarlatos received four calls from worried clients. Some people have “many millions of dollars” stashed abroad, he says, and “are having a hard time deciding” what to do about the IRS program, which he describes as “the classic carrot-and-stick approach.”