UBS AG and the U.S. and Swiss governments have settled a long-running tax-evasion probe, a Justice Department attorney told a federal court Wednesday.
Details of the pact were not given during a teleconference with U.S. District Judge Alan Gold. Justice Department attorney Stuart Gibson said initial documents had been signed and final forms were awaiting signatures.
Justice Department representatives were not immediately available to comment.
"We will release more details when the Swiss government signs the agreement as early as next week," Internal Revenue Service Commissioner Doug Shulman said.
UBS, in a statement, said that it welcomed the agreement but declined to discuss its details.
It is likely that UBS will turn over thousands of client names to the IRS as part of the settlement.
The case centers on the IRS' efforts to obtain the identities of about 52,000 account holders for an investigation of alleged offshore tax evasion by UBS clients.
UBS and the Swiss government had fought the effort, citing Swiss bank privacy.
Lawyers involved in the case said they now believe that UBS will agree to turn over 8,000 to 10,000 account identities.
The parties first officially said that they were in talks in the middle of last month. That set off back-and-forth discussions that underscored the two countries' difficulty in agreeing.
A crucial component of the settlement will be the process for turning over the names to the IRS.
Lawyers representing UBS clients said they believe that one way may be for UBS to hand the names to the Swiss government, which then would notify the UBS clients that they can appeal in Switzerland.
A flurry of UBS account holders have already begun coming forward through a so-called voluntary disclosure program that let them acknowledge unpaid income tax.