Dozens With Bank Leumi Accounts Rejected From OVDP After Acceptance

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IRS has notified dozens of taxpayers who were previously accepted into its offshore voluntary disclosure program that they have been disqualified from participation, a lawyer with a client in this situation tells BNA. Nearly all the taxpayers had accounts at the Tel Aviv-based Bank Leumi, according to Robert E. McKenzie, a partner at Arnstein & Lehr in Chicago. McKenzie says he reached out to other attorneys on a private listserve after he received a letter rejecting his client and discovered that as many as 40 other taxpayers with Bank Leumi accounts had also been disqualified. The Israeli bank was recently implicated in a U.S. federal court case involving Zvi Sperling, who pleaded guilty to conspiring with people at the bank to hide money there. The development comes as IRS focuses increasing attention on Israel as a potential location of hidden assets.

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