The United States Justice Department has announced that they are now targeting undeclared financial accounts in Belize based banks. This is in an effort to identify U.S. taxpayers who are hiding money abroad.
Judge Ursula Ungaro of the U.S. District Court authorized the IRS to serve “John Doe” summonses on Bank of America NA and Citibank NA. They are seeking information about US taxpayers with accounts at Belize Bank International Ltd and Belize Bank Ltd. They are also investigating Belize Corporate Services (BCS), which is based in Belize and sells “off the shelf” companies.
A “John Doe” summons allows the IRS to get the names of all taxpayers in a certain group (in this instance the Belize accounts mentioned above). With a normal summons, the IRS seeks information about a specific, previously identified individual. A “John Doe” summons allows the IRS to investigate any and all account holders at a financial institution.
If you have financial accounts associated with the entities mentioned above, you should consult with an experienced offshore tax attorney immediately.