IRS Commissioner on UBS Settlement

" McDonald but let's start with the fire. They have managed to do something that. Well the release of jobless Bill Clinton do for a long time that is crack as Swiss bank. UBS has agreed to turn over the names of Americans holding what were up to now secret accounts in Switzerland were joined on the call by IRS commissioner Doug Schulman mister commissioner thanks so much in. Why why now without me -- gushes from the time I was a child heard about the Swiss bank accounts and they were secret. Why is the iris do we this now verses in Howard Howard why were you able to who have successfully do at this time."

" Well come one week declared dead. Going after Americans who were hiding assets overseas for the purpose of evading taxes. If -- top priority. But the higher taxes -- we've got a multifaceted. Effort which include criminal prosecutions civil prosecution. More investigations. Following the trail longer. But this is the result of that as you said today we have an unprecedented announcement we're going to get the name between today's announcement and the other prosecutions. -- 5000. Americans. Who have been hiding assets overseas and Switzerland. This was a big hole and bank secrecy. As long as an income tax. We had no access to secret bank accounts in Switzerland. And because the market focused and concentrated efforts. We're now changing that -- dynamic."

" Give what what was the focus because like you said -- you we've all heard about these these secret bank account to Switzerland for decades forever and why now well we know we've got a big deficit is that the reason or -- or more to it."

" Throughout this is on the when I became IRS commissioner about a year and a half ago. I hate decided that focusing on international taxation is gonna be a top priority. One aspect of that is a fundamental. Issue of fairness which is -- paid. Firemen per teacher paid all their taxes wealthy individuals should not be able to go part -- that overseas. And avoid paying their taxes and so we've been driving a wedge -- at this from a number bankroll the settlement that we announced today is. -- the largest one which is we found that -- be -- was facilitating. The station we files. In court. Based summons to get that information. At the same time the Justice Department -- UBS criminally in battle with them and this is the culmination of our court proceeding to turn over information. And you know frankly I think we filed this lawsuit at the time we filed the lawsuit the Swiss government position was that we could never accept any of these -- And -- supplying this pressure Switzerland came around decided to negotiate without and it's starting to open up bank secrecy."

" One of the things that the IRS has always been concerned about has been cost benefit and and I know that like any business or any government agency you have to -- that. Is this settlement going to be. A cost benefit in itself or is it more sending a message so that people don't do this in the future he actually collect more taxes down the road."

" I think it's a boat and we have key jobs one at the summit doesn't pay their taxes we have a job to find them. Collect the taxes they -- it. And make sure that they penalties. And we're doing that with this case but it felt that that have a very strong message that. If you like your -- even out of this country the iris is going to perceive you find GO. They can't see getting founded just gone up. It's going to send a message that keeps people on the right side of the -- going forward -- we got 250. Names through criminal prosecution. That was settled in January. Four of those people have now been successfully prosecuted and are going to be. It is going to jail through the evening we got here people are going to be going to jail and they'll there's a lot of risk do not paying taxes and doing so fraudulent way."

" this all came out from an amnesty program that you folks are running what's the status of this program how long does it go and doesn't. Is it working in other parts of the country or other parts of the world for example the Cayman Islands."

" Yet we have. We have what I what I think of the carrot and stick approach which is that stick is that doing prosecutions. Are making sure people. I have to pay hefty penalties if we find them and sometimes go to jail the terror that is what we call our voluntary disclosure program. I'm very clear this is not amnesty can walk in drop on carried it. -- disclosure program you pay all the taxes you. You -- you know. You paid very hefty penalty but you do get that static. Jail and so maybe there's the amnesty part of it is is at least that on the criminal side each you don't go to jail we have now -- special op program. About five months ago that and -- On the 23 of September. I didn't make it very predictable. Wanted to find you're gonna pay. At the same time we've been having aggressive prosecutions like what we settled today and -- then. Unprecedented. The number of people have come and I the voluntary disclosure programs only getting better in the and that Michael ultimately Michael to get people in the system and keep him in the system and so my message to people they're hiding out that there is a good time -- with the government if you don't is the better chance that it we're going to find it never before."

" I suspect mr. commissioner your phone's -- ringing off the hook with people saying hey I just heard about this out right get or get involved does it do you have other banks in Switzerland. That are on your radar screen that your talking to and or again the Cayman Islands."

" Big part of our voluntary disclosure program is -- comment. You need to tell us what financial institution isn't -- where. What law -- been working with what other advisers you have to facilitate your activation. Through that process. We're getting a lot of leads and then you should expect that in the future. To be pursuing other financial institutions and other intermediaries as well as lots of other tax."

" Aren't well -- rule with the IRS is it better to knock on your door before you dot -- right to that -- that's right her -- Iris Richard dug Schulman thank you very much for joining us from Washington today presented -- you bet."