The IRS has a “deal” for approximately 20,000 wealthy tax cheats who have hidden income with the help of Swiss bank giant UBS: come clean now and you won’t go to prison. In June, UBS private banker, Bradley Birkenfeld, plead guilty to helping California real estate developer Igor Olenicoff hide $200 Million offshore.
During the trial, Birkinfeld revealed that UBS held “undeclared" U.S. accounts totaling $20 Billion. Olenicoff plead guilty and is now paying $52 Million in back taxes, interest and penalties. Now the IRS is on the hunt for more, sending up a “warning shot” with the issue of a “John Doe” summons, and offering to let tax cheats off the hook for criminal charges if they’ll turn themselves in.