It's tax time and the Finance Department wants big-time evaders to pay up. To that end, it's asked the IRS to hand over a list of rich city dwellers outed for keeping funds in Switzerland's UBS bank. Last year the offshore money repository was forced to give clients' names to the IRS and fined. So far it's unclear how many New Yorkers are enumerated on the list, but according to the Post many of the offenders are thought to live here. "Presumably, they haven't paid taxes for some period of time," said Finance Commissioner David Frankel
An investigation showed the Swiss bank was keeping $20 billion in American money offshore, enabling 52,000 US citizens to dodge their taxes. "I'm making the assumption a disproportionate number are from here," Frankel said.
It's important to pin down the rich guys because a relatively small group of wealthy people pays a good portion (about ten percent) of NYC's income tax. Frankel says he'll pursue the unusually aggressive name-naming tactic for the good of the deficit. Former Manhattan DA Robert Morgenthau said he broached the issue of offshore accounts with the mayor three times last year, and three times was rebuffed. "I'm paying my taxes," said the billionaire each time, according to Morgenthau.
Update: The City's Finance Department tells us, "The Mayor is always on board with the Department of Finance going after tax cheats. In this instance specifically, the Mayor's Office was fully aware and supportive of our request made to the IRS for information they have obtained regarding unreported offshore accounts held by NYC individuals or entities."
