Residents of Florida are likely aware that the United States government is stepping up its efforts to find Americans who have used Swiss banks to set up offshore accounts and avoid paying taxes. The Swiss government has attempted to reach a settlement with the United States on behalf of all Swiss banks. The two sides have been unable to hammer out the details, however, which would presumably include the imposition of a fine and a requirement that banks divulge the names of account holders.

Julius Baer is the largest private bank in Switzerland and has been accused of helping Americans shelter assets from the IRS's reach. According to its CEO, the bank discontinued its U.S. offshore accounts operations in 2009. The bank believes that the U.S. will not issue an indictment against it, though it will very likely be forced to pay a fine.

Other Swiss banks have received scrutiny from Washington. UBS AG was the first target of the investigation. The bank later reached a settlement with the U.S., which required the bank to provide a client list and pay a fine of $780 million. Other Swiss banks, including Julius Baer and Wegelin & Co., are alleged to have taken on U.S. clients who fled UBS when it came under fire. This month, Washington issued an indictment against Wegelin.

Having a foreign bank account is legal and makes sense for certain people. But the United States government requires that those who have a foreign bank account adhere to certain reporting requirements to ensure they are not evading taxes. An experienced tax attorney can help you with the important task of remaining in compliance with government regulations.

Source: The Wall Street Journal, "Julius Baer Expects Fine in Tax Probe," Anita Greil, Feb. 7, 2012.