IRS Tax Evasion Investigations Leading to Scrutiny of Bankers, Dropped U.S. Clients

By Colby Adams

The U.S. crackdown on tax evasion that began with the UBS AG settlement is prompting widespread changes in how foreign banks serve American clients and bringing individual bankers under greater scrutiny. Civil and criminal IRS investigators have increasingly been asking individuals suspected of hiding their assets which bank employees they've dealt with and whether anyone at the financial institutions consulted them on how to dodge reporting requirements, according to Asher Rubinstein, a lawyer at New York-based law firm Rubinstein & Rubinstein LLP. In addition to the names of bank employees, the IRS has also asked suspects to disclose the number...