Daily Tax Update - July 30, 2015: Three Swiss Banks Agree to Pay $8.4 Million in Penalties

Three Swiss Banks Agree to Pay $8.4 Million in Penalties:  The Department of Justice (DOJ) announced today that PKB Privatbank AG, Falcon Private Bank AG, and Credito Privato Commerciale in liquidazione SA (CPC) have agreed to collectively pay over $8.4 million in penalties under the DOJ’s Swiss Bank Program.  Under the program, each bank agreed to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared US accounts, and pay penalties in return for the DOJ’s agreement not to prosecute the banks.

IRS Creates Safe Harbor for Ratable Service Contracts:  Today, the IRS issued Revenue Procedure 2015-39 providing a safe harbor under which a taxpayer using an accrual method of accounting may treat economic performance as occurring on a ratable basis for certain service contracts.  The revenue procedure is effective for taxable years ending on or after July 30, 2015.