New York (HedgeCo.Net) – Wealthy Americans who have been hoarding cash overseas and failing to pay Uncle Sam are getting a break, as the Internal Revenue Service unveils a plan that will greatly reduce their penalties.

The idea comes a month after UBS was charged with helping thousands of American clients hide over $15 billion in secret Swiss bank accounts.  The IRS is forcing the bank to disclose the names associated with 52,000 offshore accounts, something that UBS is trying desperately to contest in order to salvage their U.S. clientele base.  

Should these individuals come forward prior to this release of names, the IRS is offering a reduced penalty of up to 20 percent for not filing a Report of Foreign Bank and Financial Accounts, also known as an Fbar.   However, the clients must be proactive.  Should they not come forward and their names eventually be disclosed, they not only face a penalty equal to 50 percent of the balance of each account, but other fines and possible jail time as well.  

"This is a chance for people to come clean on their own," IRS Commissioner Doug Shulman explained.

The IRS will still require the individuals to pay any back taxes owed over the last six years as well as any applicable fees.  It is estimated that the U.S. loses $100 billion a year in lost tax revenue from offshore activity.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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Tags: accredited-investors, american clients, applicable fees, back taxes, clientele base, financial-accounts, hedgeco, internal revenue service, irs commissioner, jail-time, offshore accounts, offshore activity, salvage, shulman, sister-sites, swiss bank accounts, ubs, uncle sam

New York (HedgeCo.Net) – Italian automaker Fiat S.p.A. may be interested in acquiring a stake in Chrysler that could help lift the U.S. automaker out of financial distress.

According to an article published on autonews.com, Fiat may invest in a 30-35% stake in Chrysler, while helping the company to design vehicles that create fewer emissions.

While the website didn’t cite specific sources, Chrysler is maintaining ambiguity by stating they do not “confirm or disclose the nature of its private business meetings.”  They also downplayed the situation by saying that, “In today’s economic environment, talks are going on between companies in all industries – ours is no different.”

Chrysler, who has already received $4 billion in rescue funds from Uncle Sam, shut down production in all of their U.S. plans in December until inventory is moved.  Many fear that Chrysler cannot weather the storm unless they align themselves with a partner.   

Fiat would provide new engine and transmission technology that would help Chrysler to produce more fuel-efficient vehicles that pollute less, said people familiar with the matter.

Private equity firm Cerberus Capital Management currently holds an 80.1 percent stake in Chrysler, while Daimler holds the remaining 19.9 percent.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com

Tags: accredited-investors, ambiguity, business meetings, capital-management, daimler, economic environment, financial-distress, fuel efficient vehicles, hedgeco, italian automaker, many-fear, more fuel efficient vehicles, private business, private equity firm, sister-sites, transmission technology, uncle sam, weather the storm