Lawsuits Against Banks Over Hidden Accounts Expand US Tax Collections

The United States is increasing its collections of undeclared taxes on money hidden in foreign bank accounts through the aggressive use of lawsuits and criminal prosecutions, Principle Assistant Attorney General Caroline Ciraolo told guests at a money laundering conference in Panama.

WASHINGTON (Sputnik) — Since 2008, Ciraolo noted, the Justice Department has criminally charged more than 160 account holders and over 50 facilitators, many of whom reside outside the United States.

In many cases, she said, tax evaders come forward to avoid criminal prosecution. For example, the IRS has reported more than 54,000 voluntary offshore disclosures and the collection of more than $8 billion in taxes, penalties and interest from Swiss banks.

"In today’s climate, the Justice Department’s use of such tools expands the IRS’s [Internal Revenue Service] ability to obtain information in the US government’s continuing efforts to hold US taxpayers accountable for reporting and paying their fair share of taxes," Ciraolo said in a speech on Wednesday.