Over 14,700 US taxpayers relented and disclosed to the Internal Revenue Service billions of dollars in offshore bank accounts. Under a voluntary Internal Revenue Service program, the sneaky taxpayers were allowed to avoid criminal prosecution so long as they pay what they owe in taxes, penalties and the like.

The amnesty program expired October 15, and IRS Commissioner Doug Shulman noted that a ton of people came forward as the deadline approached. The IRS has been pushing hard amid a broad US crackdown on tax evasion at Swiss bank UBS AG and other institutions as well. "This is a historic milestone for the nation’s hardworking taxpayers," a pleased Shulman said.

Shulman notes that the aggregate amount he expects to collect will be in the billions of dollars. Taxpayers accepted the amnesty program after the US came to an agreement in August with the Swiss government and UBS to obtain names of US taxpayers believed to be hiding assets in secret bank accounts. UBS earlier paid a $780 million penalty along with the disclosure of 150 names. Several of those people have faced criminal charges; a couple are set to receive prison time.

The UBS disclosures and the amnesty program have finally turned the tide on what was once a tough nut to crack.  The offshore tax landscape is no longer out of reach of Uncle Sam, particularly in Switzerland where bank secrecy dates back many centuries.  "The whole game has changed," a happy Shulman notes.

The IRS and Swiss have also unveiled the criteria being used to determine which accounts are going to be revealed.  Evidently, accounts containing at least 1 million Swiss francs from 2001 to 2008 will be revealed as well as accounts that earned 100,000 francs on average for the past three years.  And of course, where fraudulent action can be established, poof goes the secrecy veil.

US Senator Carl Levin is not satisfied with the criteria as it still provides a way for Switzerland’s bank secrecy to remain.  The Swiss said the first 400 names will be chosen before the week is up, followed by 100 more before month’s end.