Warn your clients, the U.S. is cracking down on Swiss bank accounts. It is something that isn’t widely discussed in the tax industry but there are some Americans who hoard money in Swiss bank accounts to avoid paying taxes on it. However, the lower of house of the Swiss parliament voted Monday in favor or a law that will require Swiss banks to report the holdings of their current and future clients.
The U.S. and Swiss governments have entered into a deal aimed at settling past wrongs of the Swiss banks. The heal offers individual Swiss banks the opportunity to avoid U.S. prosecution if they had over U.S. citizen account information and pay a fine.
In light of the recent agreements, Swiss banks are purging American accounts and no longer actively seeking American clients.