am 20. Juni 1994

Sie hetzen dich, hat Kafka geschrieben.  Hätte ich geringeres Selbstvertrauen oder weniger Größenwahnsinn wie immer man es erklären will, dann hätte ich wahrhaftig Grund genug, mich gehetzt zu fühlen.

Die Joint Underwriting Association hat neuerdings an die Mass. Medical Society berichtet, dass ich für Chirurgie nicht versichert bin, und dass ich auch keine Rückversicherung vor September letzten Jahres habe.  dass ich überhaupt nur von Jahr zu Jahr versichert bin.  Die Medical Siciety wird diese Kenntnis mit den verschiedenen managed care organisationen verbreiten mit denen ich tätig bin, und die werden mir voraussichtlich kündigen.  Auch die Krankenhäuser, das Infirmary und Mount Auburn, an denen ich tätig war, werden möglicherweise mit dieser Begründung meine Krankenhaus Privilegien einstellen.  Sogar meine Medical License kann aus diesem Grunde angefochten werden.  Mittwoch, in zwei Tagen, wenn ich in Belmont bin werde ich beklommen und vielleicht etwas furchtsam meine Post öffnen um zu entdecken, was mir bevorsteht.

Außerdem hat Blue Cross und Blue Shield mich benachrichtigt, dass man in diesem Monat meine Praxisräume, die Praxis Urkunden, und die Praxis selbst inspizieren wird. Da muss ich mich auf alle möglichen Zurechtweisungen gefasst machen.  von denen ich entschlossen bin nur jenen nachzugeben welche mich weder Mühe noch Geld kosten.  Meine Computeranlage in welchen in welchen die gesamten Urkunden Anamnesen und Befunde gespeichert sind, werden daber zuerst amtlicher Prüfung unterzogen; aber nur um die Gunst von Blue Shield zu bewahren oder auf einer ihrer Listen zu bleiben habe ich nicht vor mir irgend Mühe zu machen.

Und nun kommt noch die Benachrichtigung der Steuerbehörden, aus denen ich entnehme, dass Margrit keine Steuern auf das Einkommen ihres Trusts bezahlt hat.  Sie bestätigte mir dann auch, dass sie seit Jahren keine U.S. Steuererklärung mehr eingereicht hat, weil sie zuletzt doch nie Steuern zu bezahlen hatte.  Die ausgiebige Korrespondenz bedarf keiner Erläuterung.

June 20, 1994

Dear Margrit,

     I am very sorry and deeply troubled about the misunderstanding concerning your United States Federal Income Tax Returns.  Following our telephone conversations, I realize that you thought that because you paid such large amounts of income taxes in Canada, you did not owe any taxes to the U.S. Internal Revenue Service and that you did not need to file any U.S. Federal Income Tax returns.  I know that you acted in good faith, and you may indeed be right.  The credit for your Canadian taxes may indeed cover your U.S. tax liability.  The tax laws, especially for foreign residents, are so complex that it is impossible to be certain about ones tax liability unless one actually goes through the arduous process of completing the forms.

     If my memory serves me correctly, the U.S. Code states that if no income tax is due, no return requires to be filed.  If however, income tax is due, then a person who knowingly and willful- ly fails to file a tax return is subject to imprisonment for one year and to a fine of $10,000.  I am not certain about the amount of the fine; it may be higher; and for that matter, the term of imprisonment may also have been changed since I reviewed these sections of the Code. The statute of limitations is six years.  Thus, if you were liable for U.S. Income Tax for 1988, 1989, 1990, 1991, 1992 and 1993 you are at risk for six years imprisonment and a fine of $60000 plus taxes due, penalties and interest, unless you can convince the court that you did not "knowingly and willfully" fail to file a return; and even though you and I know that you honestly thought you did not owe any taxes, and sincerely believed that you did not need to file a return, the excuse is so obvious that there is a real risk that it will not be accepted.

     I believe your situation is potentially very hazardous, and if you take it lightly, it becomes even more dangerous.  The first step is to determine for each of the past six years how much income tax, if any, you owe.  For this purpose it is necessary 1) to list, for each of the past six years, all your income from salary, stocks, bonds, mutual funds, annuities and trusts.  2) to check that your Canadian income taxes have been calculated properly, and 3) to calculate your U.S. tax liability, if any.  If it is discovered that such liability exists, then an income tax form should be filed immediately, for that is the best way to convince the government that prior failure to file was not knowing and willful.  If it turns out, as you believe, that you do not owe any taxes, then, in order to have the withholding restriction lifted, you need only file the 1993 return and there will be no penalties and no criminal liability.


     Please understand that this is a legal emergency.  Please proceed as follows: For each of the past six years, beginning with 1993 and going back to 1988: Please make Xerox copies of all statements of income from salaries, annuities, dividends, interest: all income whatever.  Please make Xerox copies of all Cana- dian income tax forms.  Mail the copies to me immediately.  Please mail me any instructions for completing Canadian income tax returns that you may have, or if you have none, get me a copy for the 1993 instructions from the local tax office. 
Please execute both copies of the power of attorney.  They are identical.  I prefer the one-page version; however I may need to have the power of attorney recorded in the office of the clerk of courts, and in that case the three-page version with its wider margins may be required.  Please make Xerox copies of any and all communications from the Internal Revenue Service or from the United States Attorney and mail them to me immediately.  The power of attorney which I request will make it possible for me to negotiate with the Internal Revenue Service and or with the U.S. Attorney in your behalf.  Initially at least this will probably be advisable.  Later there may be some instances where I will ask you to speak for yourself, and other instances where I will want to hire a tax lawyer or a criminal lawyer to act in your behalf.

It seems unlikely, but not impossible, that Internal Revenue agents or U.S. Federal prosecutors will visit Canada to interview you.  Please notify me immediately of any such requests, so that we can decide whether I should fly to Windsor to be present.  Please do not consent to interrogation without competent legal assistance.  If you are asked to leave Canada to enter the United States for interrogation by U.S. Government officials, or if you leave Canada for any other reason, be sure that before you leave, all your affairs in Canada are in order, because U.S. officials may seek to prevent you from leaving the United States by filing criminal charges even prior to a grand jury investigation and arresting you.

I very much hope that you do not owe any taxes and that in my anxiety turned out to be a false alarm; or that, if you do owe taxes, the U.S. Government will be satisfied if you pay them with penalties and interest.  However, if the time comes when we need to hire a tax lawyer or a criminal lawyer, it is probably better that I should hire someone in Virginia, than that you should go to Detroit.  As for a Canadian lawyer there would be no point in hiring him to defend you against claims and charges by the United States Government. In any event, please do not make any financial commitments to be paid with trust funds without my prior approval.

My anger on the telephone notwithstanding, I cannot close without saying that I love you very, very much, and that I hold nothing that you have done or that you will do, against you.  The greater the predicament, the greater the love.  I feel very sorry for you, and I will do all I can to help you.  Please send me the tax information I asked for very promptly.  I intend to complete the 1993 form in any event.  If taxes for earlier years are due, I will complete those forms as well.  All forms that I complete, I will sign as the tax preparer, and then mail them to you for your signature before they go to the tax authorities.  I think that if I have significant responsibility for preparing the delinquent returns, your position visavis the Internal Revenue Service and the U.S. Attorney will be much stronger, and I can be a much more convincing witness in your behalf.

Dein Jochen