The news the IRS had broken the secrecy at USB, a Swiss bank, seemed to portend huge tax evasion cases. Instead, it has merely proved the golden rule is dominant in this country.

What is the golden rule? The definition is simple. He who has the gold – rules! Such is the case with the USB case that was supposed to send the world of tax evaders using Swiss bank accounts upside down. The investigation was on 60 Minutes and a host of other news programs. It turns out it was all much ado about nothing. 

The American tax evaders are getting off lightly. In fact, very lightly. At first, they were given the opportunity to avoid criminal prosecution by simply voluntarily coming forward and paying the back taxes as well as penalties and fines. If they didn’t, they were promised a severe beating in court with harsh criminal penalties sought.

Harsh? What a joke. 

Let’s take a look at the case of Federico Hernandez. He is a good American businessman with no splotches on his record. Alas, he was found to be holding $8.8 million dollars in a USB account. Oops. He also failed to come forward and voluntarily report it when the IRS provided such an opportunity. So, what vicious beating did he receive for his wayward efforts? 

Try a year in jail. 

Want to be angered even more? His was a harsh punishment. Others in similar positions received sentences of between 10 months and mere probation. That is hardly a slap down by the agency. I should also note that these were not cases where the judge went lightly on the defendants. These sentences were generally in line with what the prosecution asked for. 

So, what is the lesson for the day? Get caught smoking some of that funny tobacco and you can go to jail for a year or more. Get caught hiding millions in a Swiss bank account to evade taxes and you could get anywhere from probation to a year in jail. 

The golden rule indeed.