IRS vs. UBS: Tax case leads to more banks in Europe that may be helping tax evaders

The IRS' amnesty program, which ends Sept. 23, has helped the agency identify about 10 Swiss and European banks being used by U.S. citizens for offshore accounts. This does not necessarily mean that the banks are helping their U.S. account holders to evade taxes, but it gives the IRS new places to explore potential tax crimes. All of this is due in no small part to the agency's very public cases against UBS (UBS).

U.S. citizens who come forward to take advantage of the lower penalties during the amnesty period must disclose all of the banks with whom they hold offshore accounts and the dates for opening and closing those accounts. Some of the banks named include Credit Suisse (CS), Julius Baer, Zurcher Kantonalbank and Union Bancaire Privee. In response, some Swiss banks -- including Zurcher Kantonalbank and Sarasin & Ciehave -- have started to freeze out U.S. clients to avoid problems with the IRS.