Money Laundering Scam

Table 1: I.R.C. Statutory "Benefits"

1

# 1

Name

Code section

Notes

Effectively connected with the “trade or business” franchise

26 U.S.C. §7701(a)(26) 26 U.S.C. §871(b) 26 U.S.C. §1

2

Foreign person claiming reduced rate of, exemption from, tax under treaty

26 U.S.C. §894 26 U.S.C. §6114 26 U.S.C. §6712 26 U.S.C. §1(h)(11)(C)(i)(II)

3

Nonresident alien claiming exemption for annuities received under qualified plans Foreign organization claiming an exemption from tax solely because of its status as a tax exempt organization Qualified Intermediary (QI)

26 U.S.C. §871(f)

4

26 U.S.C. §501(c )

5

26 C.F.R. §1.1441-1(e)(5): Generally 26 C.F.R. §1.1441-1(e)(5)(ii): Definition

Pursuant to 26 C.F.R. §1.1441-1(c)(14), one cannot be “qualified” without being a “U.S. person”, meaning a person with a legal domicile on federal territory in the “United States” (District of Columbia). A withholding foreign partnership (WP) is any foreign partnership that has entered into a WP withholding agreement with the IRS and is acting in that capacity. A withholding foreign trust (WT) is a foreign simple or grantor trust that has entered into a WT withholding agreement with the IRS and is acting in that capacity. A WP or WT may act in that capacity only for payments of amounts subject to NRA withholding that are distributed to, or included in the distributive share of, its direct partners, beneficiaries, or owners. A WP or WT acting in that capacity must assume NRA withholding responsibility for these amounts. You may treat a WP or WT as a payee if it has provided you with documentation (discussed later) that represents that it is acting as a WP or WT for such amounts. You cannot be a WP or a WT without an EIN. A WP or WT must provide you with a Form W-8IMY that certifies that the WP or WT is acting in that capacity and a written statement identifying the amounts for which it is so acting. The statement is not required to contain withholding rate pool information or any information relating to the identity of a direct partner, beneficiary, or owner. The Form W – 8IMY must contain the WP-EIN or WT-EIN.

6

Withholding Foreign Partnership (WP) or Withholding Foreign Trust (WT)

26 C.F.R. §1.1441-5(c)

See: http://www.irs.gov/businesses/small/ international/article/0,,id=127923,00.html

The Money Laundering Enforcement Scam

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Copyright Sovereignty Education and Defense Ministry, http://sedm.org Form 05.044, Rev. 10-2-2013

EXHIBIT:________