I haven't gone offshore yet. I've talked about it with my CPA and attorney, but the risk doesn't seems worth it to us at this point. It seems to me that you could be smarter about taking more deductions and business expenses here in the U.S., pay a much more reasonable tax rate, and be able to sleep at night. Do you take a home office expense? How about charitable contributions and unreimbursed business expenses? Set up a Partnership or S-Corporation (tons of deductions). Pay your wife a salary. Max out your 401K and Keough plan. Mortgage as much real estate as you can. The interest is deductible. I managed to get my true tax rate down to 25% and I'm upper 2% bracket. Chicago and NYC have specialized CPAs who advise professional traders - I know, I have one. Why would you be so cheap about spending a few hundred bucks to consult a good tax lawyer or CPA that knows the securities industry? Those fees are deductible. P.S.- Citibank was just forced to hand over to the I.R.S. records of their U.S. customers with EFTs from certain popular overseas banks. Be careful.