Guest Post by Mark Nestmann
I’m a die-hard science fiction fan, and one of my all-time favorites in this genre is Douglas Adams’ superb The Hitchhiker’s Guide to the Galaxy.
Only seconds before aliens demolish planet Earth to make way for an interstellar shortcut, the book’s protagonist, Arthur Dent, is whisked aboard a spaceship. His savior is Ford Prefect, an alien stationed on Earth to conduct research for an updated version of the Guide.
Upon being whisked into the spaceship, Ford hands Arthur a copy of the Guide. On the cover are the words “Don’t Panic.” “I like the cover,” Arthur says. “‘Don’t Panic.’ It’s the first helpful or intelligible thing anybody’s said to me all day.”
A few weeks ago, I received a letter that reminded me of this dialogue. It was from Bank Austria, where I had an account for several years, until closing it in 2009. The letter, which came from the bank’s “FATCA Task Force,” informed me (in both German and English) that I needed to authorize the bank to release my account information to the IRS. Otherwise, the bank would:
… report aggregate information (the total number of account holders of the Bank who do not consent, the aggregate account balance and payment amount) to the IRS. Such information may give rise to a group request by the IRS for specific information about my/our business.
Despite the Guide’s advice, I must admit I felt a brief moment of panic when I first read the letter. I was certain that I had reported the account every year that I had it open, as required. Was it possible that the bank never followed my instructions to close the account in 2009? If not, would I face IRS fines of $10,000 annually since 2010 ($40,000 in all) for failing to report the account?
Continue reading “Don’t Panic! The Hitchhiker’s Guide To Offshore Freedom”
