The shortest and most relevant answer to the question of how the IRS discovered almost $2 Trillion in hidden assets in offshore accounts and property is FATCA. The US Justice Department pursued Credit Suisse and other international financial organizations for tax evasion, and their resulting success has forced the hand of other governments and financial institutions worldwide. Credit Suisse plead guilty this past Monday to illegally helping US citizens to avoid paying US taxes. In the past several months the Justice Department has reached agreements with nearly 85% of Swiss banking and investment institutions and account information will begin flowing to the IRS July 1. The success of the Credit Suisse case and other criminal prosecutions against international financial organizations has helped to broker a new age of financial cooperation between the IRS and foreign banks and financial institutions. This is not welcome news for many Californians and US citizens who have utilized offshore investment and banking strategies to shield income and assets from US taxation.

Tags: Credit Suisse, FATCA, IRS, offshore investment


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