Dear Mr. Schaefer:
Thank you for contacting me with your concerns about the Bradley Birkenfeld case and the enforcement of our tax code. Ensuring that everyone pays their fair share of taxes is very important to me, and I welcome the opportunity to discuss this issue with you.
In February of 2009, the Swiss bank UBS admitted to criminal wrongdoing in their actions to hide the assets of their clients from federal taxes. As a result, the bank paid a $780 million fine and closed the unit responsible for the crime.
Bradley Birkenfeld, a former UBS banker, was sentenced to 40 months in prison for his role in the bank's wrongdoing. Many have criticized the severity of this sentence due to the cooperation Mr. Birkenfeld is said to have offered to the Justice Department. The Justice Department has claimed that his cooperation was limited, and that it did not merit a reduced sentence for the crimes committed by Mr. Birkenfeld. I am following the situation closely, but since this is a legal matter, it would be inappropriate for me to intervene directly as a U.S. Senator.
To increase the ability of the IRS to enforce our tax code in the future, Senator Max Baucus (D-MT) introduced S. 1934, the Foreign Account Tax Compliance Act on October 27, 2009. This legislation requires foreign banks to disclose information to the IRS about accounts subject to taxation, which American banks are already required to do. S. 1934 was referred to the Senate Finance Committee, of which I am not a member.
Please be assured I will keep your thoughts in mind as Congress considers these issues. Again, thank you for contacting me and please feel free to do so again in the future.
Sincerely,
Herb Kohl
United States Senator
Thursday, January 21, 2010
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