Should Poland Help Americans Track Our Citizens?

For years, it has been standard practice for Americans to hide their money from the Internal Revenue Service in Swiss bank accounts. For some time it has been clear that this option has an expiration date.

It is easy to understand why the U.S. government is so enthusiastic in their quest to find and punish tax delinquents. In the age of ballooning deficits and mounting debt, it should be the priority of any government to make sure that the tax code is rigidly enforced. Washington’s approach to the problem is admirable and should be replicated in Poland as well.

The number one priority for the Polish government, however, should be to protect the interests of its citizens, not help other governments chase down fellow Poles. The Foreign Account Tax Compliance Act raises a lot of questions and stirs controversy — not just in the United States. After the failure of the FATCA treaty, the Polish government should re-evaluate and explain the necessity of the agreement before rushing to sign it.

At first glance, it looks like the treaty will force Polish banks to hand over information to American investigators about Poles working illegally and off the books in the United States. It is possible that they would be forced to carry out confiscations for such mundane things as unpaid parking tickets.

It might be the case that American billionaires have hidden their fortunes in our banks. Maybe FATCA will lead to the discovery of a vast financing scheme for international terrorists. It is more likely, however, that Polish banks will simply be used to hunt down Polish day laborers building houses in Chicago for less than minimum wage.

It would be interesting to see the reciprocity that would occur under FATCA. Will officials from the Ministry of Finance be able to look through the bank accounts of Americans as freely as IRS or FBI officials? Will Americans help hunt their own citizens for tax crimes committed in our country? Everyone who knows how American judges and prosecutors work with regard to foreign legal conflicts knows that the sword will not cut both ways evenly. Nonetheless, it is useful to ask these questions before it is too late.