All Blog Posts from Econwatch

This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.

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While ambling around the Bureau of Labor Statistics site (a fantastic trove of information), I stumbled upon a Consumer Expenditure Survey that details how Americans spent their 2008 Economic Stimulus Payments, which were actually IRS tax rebates.

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By Marlys Harris of MoneyWatch.com.

Victims of Bernard Madoff's Ponzi scheme may have allowed themselves a rare smile on July 14, when the 71-year-old was locked up in a prison cell at a federal correctional center in Butner, N.C. His new neighbors behind the barbed wire include terrorist Omar Abdel Rahman, the "Blind Sheik" who masterminded the 1993 World Trade Center bombing, and John Rigas, the disgraced former CEO of Adelphia. Madoff, who reportedly was assigned to work in the prison's engraving shop, is scheduled to be released in 2136. In other words, barring a miracle, Bernie Madoff will never be free again.

But there won't be any real justice until investors recoup at least some of the estimated $65 billion he stole. In letter after letter to U.S. District Court Judge Denny Chin, who presided over the case, Madoff victims wrote of personal privations they had suffered: homes lost, newly destitute parents pressed to move out of nursing homes they can no longer afford, children forced to withdraw from college, people returning to work after years of retirement. Says Ronnie Sue Ambrosino, who with her husband Dominic lost $1.6 million: "Until we get our money, there is no justice."

Past victims of Ponzi schemes have historically recovered only pennies on the dollar, if anything. Often, bankruptcy trustees and other officials moved so sluggishly to recover stolen funds that the miscreant and his family had plenty of time to stash their gains offshore. In this case, however, bankruptcy trustee Irving Picard rushed to locate Madoff's money and to sue any beneficiaries of the fraud. To determine to what degree he and other officials keep faith with investors, I have taken it as my mission in the coming months (and years) to follow the efforts to recoup the money. You'll be able to read all about it here and in my blog, The Consumer Reporter.

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If you have any money stashed in an overseas account, the IRS wants to know about it.

The U.S. is launching a stiff crackdown on Americans who shield income from the tax man in foreign accounts. The new campaign could net tens of thousands of tax evaders, according to a report in the Wall Street Journal ($) Monday.

Taxpayers with $10,000 or more in offshore accounts at any point during the year will be required to file a tax form called the Foreign Bank Account Report, or FBAR. People who owe back taxes can expect some tough penalties. And for those who fail to file the form altogether, the penalties will be much greater.

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The Internal Revenue Services intensified hunt for tax evaders overseas has caused Switzerland's two biggest banks to say goodbye to its American customers.

UBS AG and Credit Suisse Group AG have given Americans a choice: move your money to special accounts they have created in the U.S. or lose the account, Bloomberg reports.

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