On Monday, January 14, 2013 we poste The Long Arm of the IRS Reaches Israeli Shores - Oy Vey! which discusses the IRS activity as it relates to US Taxpayers with Secret Israeli Bank Accounts.
Now we have heard that theInternal Revenue Service this week sent faxes to tax attorneys nationwide informing them that clients who were previously accepted into its criminal amnesty program for those who disclose once-secret offshore accounts, have “upon further review” been disqualified. The faxes, signed by John R. Tafur, director of of Global Financial Crimes at the IRS’ Criminal Investigation division, affect dozens of American taxpayers who had undisclosed accounts at Bank Leumi le-Israel Ltd., Israel’s largest bank.
An IRS spokesman said in a statement: "There are a number of reasons why a taxpayer may be disqualified from participating in the IRS' offshore disclosure program." The spokesman said the IRS cannot comment on specific cases.
Maybe it is because Bank Leumi is believed to be cooperating now with U.S. prosecutors. On Monday March 11, 2013, Bank Leumi announced it will take a charge of 340 million shekels ($91 million) to cover the expense of investigations that are being conducted by the U.S. authorities concerning customers who are U.S. taxpayers.
Some clients of Israel's Mizrahi Tefahot Bank have also been disqualified from the program, as well.
A U.S. crackdown on Americans using offshore banks to avoid taxes began with Swiss banks, but has widened to Israel.
The IRS CI knows exactly what they are doing in rescinding the previously granted clearance. It appears to be part of a larger situation regarding the investigation of Bank Leumi, its representatives, etc. Many of the taxpayers not only gotten written criminal clearance letters as a result of participating in the OVDP, but had also have proceeded to submit a complete disclosure including amended returns, FBARs, account information, etc.
Sources:
Read more at: Tax Times blog
