Looks Like Someone Is Finally Listening to Us.

Since we're in the midst of a slow day, we're pulling one from Scoping. Just a few more opining on the whole delay in the IRS/UBS trial that was supposed start today.

Judge Alan Gold is giving the parties three weeks to make nice and on July 29 will hold a conference call where the parties will either announce the number of Toblerones to be transferred or whether the parties will battle it out.

The delay kinda-sorta indicates that UBS wants to settle but not because it would be painless. The whole sitch has not been good for You and Us, as if any settlement is reached, they're likely going to be forking over a metric asston of cash. And since the IRS will likely to argue that these individuals (read: not poor people) haven't been paying taxes on their offshore assets for eternity, the payment will similar, if not greater than the $780 million paid by UBS earlier this year.

Then there have been the reports of the bank losing business because of the negative exposure and there's the whole, we're a Swiss Bank, we're super-secret image. Yeah, probably not so much any more.

On top of all that, the other trub that UBS will have is that the U.S. case is just the beginning. Other governments want their rich clients with offshore accounts paying back taxes too. What happens with in the U.S. will ultimately serve as a jumping off point for other courts to rule in a similar fashion.

So this all adds up to a lose-lose-lose-lose-lose for the Swiss Bank. So this is where we have to say: The "You and Us" talk better stop, UBS, cuz unless you got a turd in your pocket, it's just going to be YOU on this one.

U.S. trial delay seen bringing UBS tax deal nearer [Reuters]

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Judge Wants Hints to How Ugly the IRS Will Make this Naming Names Thing

We're beating this drum until something gets accomplished:

THE SOLUTION IS TOBLERONES.

The judge in the UBS/IRS case now wants to know, just for the sake of argument, how down and dirty the IRS will get if he rules in the Service's favor and UBS doesn't name names.

Alan Gold, the US district judge presiding over the case, late on Wednesday gave the US government until midday US time on Sunday to clarify whether it might go as far as seizing assets of the bank’s US operations, or forcing them into receivership, should the court rule against UBS and the bank not comply.

Gold also was curious to know if the Feds had considered double-secret probation and counsel replied that "all options are on the table".

It's becoming apparent that the Swiss are getting tired of "you're aiding tax evaders" talk out of DC because now they're pulling the pot/kettle card:

Swiss critics have accused the US of hyprocrisy in moralising on tax evasion. Many have noted the irony that next week’s case will be heard in Miami, an established offshore centre for the – possibly undeclared – assets of thousands of rich South Americans.

The IRS replied awkwardly with, "SO? SO? It's not that ironic"

Judge calls on US to clarify position on UBS [FT.com] Sphere: Related Content

The Gods are Smiling on Foreign Bank Account Holders Today

In kinder gentler IRS news, the agency announced that today's deadline for filing the Report of Foreign Bank and Financial Accounts (FBAR) has been extended for those taxpayers that can explain why they need more time to hide report income from offshore accounts.

Apparently taxpayers have been crazy confused about whether the foreign reporting requirements apply to them because they've got so much money, in so many countries that they just don't really give a damn.

Taxpayers filing for the extension have until September 23 because that's obviously a logical date.

IRS extends offshore reporting deadline [Accountancy Age] Sphere: Related Content

Trend of Fewer Corporate Tax Audits Likely to Come to a Dead Stop

It appears that Corporate America has come to appreciate the joy in paying taxes because the IRS isn't doing as many corporate audits, according to a report put out by the agency.

It is pretty hard to picture the IRS being marginalized under a Republican administration but, "The IRS's enforcement staff has been whittled down in recent years, a response to fervent complaints by some U.S. lawmakers critical of what was characterized as aggressive tax collection."

We're curious as to what normal tax collection would be like. Or better yet, what about passive tax collection? Would IRS agents show up with fresh baked cookies and suffix all their requests with, "pretty please with sugar on top"?

It's a nice thought but with the Obama Administration proposing to double the IRS enforcement budget, the financial anal probes will likely be out there en masse. This is your warning tax scofflaws!

U.S. corporate tax audits down 9 percent: IRS report [Reuters] Sphere: Related Content

IRS Squeezing Out Pseudo-Tax Preparers

Now you've done it. You've pissed off H&R Block and they don't take this shit lightly.

The IRS is going to recommend new federal standards for tax return preparers by the end of this year. T. Geith gets the pleasure of determining if the new standards will be kosh.

Apparently, there are lots of people just walking around, soliciting cheap or free tax advice out there and professional preparers like H&R Block have HAD IT with the fuckin' amateurs:

"Whether through face-to-face advice or through online or software programs, it is critical that all tax preparers have the training, including appropriate licensing, to prepare returns correctly, and to comply faithfully with the law"

So just pack it up, stay at home moms and dads who prepare tax returns for your friends, H&R Block is going to dominate fucking up everybody's 1040, NOT YOU.

IRS to Propose New Tax Preparer Standards [Smart Money]
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