US Internal Revenue Service investigators seem to be concentrating on HSBC and the Far East.

The US Internal Revenue Service seems to be sending in a new wave of investigators and information-gatherers to the Far East in general and HSBC in particular as part of a recent crackdown. According to reports, this extends to IRS officials embedded in the American consulate in Hong Kong.

In the latter part of last month, as part of this renewed effort, a US District Judge authorised the IRS to issue summonses requiring Federal Express, UPS, Western Union, the Federal Reserve Bank of New York, the Clearing House Payments Company and HSBC Bank USA to produce information about US taxpayers who might have been evading federal taxes by using the services of Sovereign Management & Legal Ltd to establish, maintain or conceal foreign accounts, assets and entities. The IRS had already 'determined' that these firms had been helping Sovereign transfer funds.

The IRS was allowed to serve 'John Doe' summonses, whose purpose is to obtain information about possible tax fraud by individuals whose identities are unknown. The time frame for the information was 2005-2013. Sovereign, according to the US Government, is a multi-jurisdictional offshore services provider that offers clients, among other things, the formation and administration of anonymous corporations and foundations in Panama as well as offshore entities.