From 2006 to 2008, a New Hampshire man, Menashe Cohen, failed to report his offshore accounts in the Channel Islands, Israel and Switzerland. In 2009 he filed an Foreign Bank and Financial Accounts (FBAR) form but still failed to report his UBS account.
On January 26, 2015, Mr. Cohen faces a sentence of max 3 years in prison and a fine of $250k. According to the US Department of Justice (DoJ) Mr. Cohen has agreed to ‘resolve his civil liability for failing to report his financial interest in the UBS account on a FBAR by paying a 50 percent civil penalty to the IRS based on the high balance of his one-half interest in the account’.
Jack Townsend commented on this information on his blog, Federal Tax Crime:
‘Straightforward continuation of DOJ Tax’s plea requirements. However, the limitation of the FBAR penalty to his interest in the UBS account. From the narrative, it would appear that he had FBAR and income tax delinquencies for other accounts in a period that would have been relevant to the prosecution’.
Further update on 22.10.14