Mark Matthews Comments: IRS Letters Will ‘Nudge' U.S. Clients for Swiss Bank Data

At the annual international tax conference sponsored by George Washington University Law School, the IRS, and the Treasury, John Cardone, director of withholding and international individual compliance in the IRS Large Business and International Division, said the Internal Revenue Service will send “nudge” letters in early 2018 to get financial information from U.S. people with accounts in Swiss banks who signed waivers allowing the banks to hand over data under a Justice Department program.  Others on the panel with Cardone said at least the letters offer taxpayers a chance to comply. “It's much better to have someone show up with a nudge letter than with handcuffs,” Mark E. Matthews, a partner with Caplin & Drysdale, Chartered in Washington, said during the presentation, "so we appreciate the warning." Under the program, banks could escape prosecution if they paid hefty penalties and turned over information on U.S. money they were helping to hide.

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Excerpt taken from the article "IRS Letters Will ‘Nudge’ U.S. Clients for Swiss Bank Data" by Alison Bennett for Bloomberg BNA.