Financial Transparency Coalition

Washington Post - U.S. and Swiss negotiators have initialed a settlement that averts a legal showdown over the U.S. government's landmark challenge to Swiss bank secrecy, a government lawyer said Wednesday.

ZURICH -- The Swiss cabinet held an extraordinary meeting on UBS AG's problems with U.S. tax authorities, a move that could signal Switzerland is close to bowing to the U.S. on demands to hand over data.

The IRS on August 7 issued Notice 2009-62, which further extends the deadline for filing a foreign bank account report (FBAR) for those taxpayers who have only signature authority over a foreign account or who have an interest in a commingled fund.

Finance Minister Hans-Rudolf Merz says using emergency laws is not an option as negotiations on a settlement between the American tax authorities and UBS continue.