Quote from hughb:
I have to admit that in the end, I was always treated fair by the IRS. I've been examined by them twice. Once I had to cut them a check with interest and penalties, and once they had to cut me a check with interest.
Anyway, back to Swiss bank accounts - I understand that under Swiss law a bank has to withhold 35% in taxes from the interest you earn on your deposit. In an American bank you will be paying a lot less in taxes on your interest and it isn't automatically withheld by the bank, you pay it at your leisure as long as you meet the dead line. With that in mind, the only reason I can see to have a Swiss bank account is to keep anybody from knowing you have those assets, not so much to avoid taxation.
Not entirely true. Under Swiss law you can negotiate a flat amount of tax you will pay regardless of income earned.