Money Laundering Scam

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Name

Code section

Notes

Nonresident claiming exemption for independent personal services

26 C.F.R. §1.1441-4(b)(4): Withholding 26 C.F.R. §1.1461-1(c )(2)(i): Reporting 26 C.F.R. §1.1441-6(g)(1): TIN requirement

Claimed using IRS Form 8233. The term “personal services” is defined as work performed in connection with a “trade or business” pursuant to 26 C.F.R. §1.469-9(b)(4) and 26 C.F.R. §1.1441-4. 26 U.S.C. §864(b)(1)(A) excludes services performed for foreign employers, meaning employers other than the U.S. government. See: http://www.irs.gov/businesses/small/international/ article/0,,id=106259,00.html A foreign grantor trust is a foreign trust but only to the extent all or a portion of the income [meaning “trade or business” earnings or payments from the U.S. government pursuant to 26 U.S.C. §871 and 26 U.S.C. §643(b)] of the trust is treated as owned by the grantor or another person under sections 671 through 679. All “U.S. persons” have a domicile in the “United States”, meaning the District of Columbia. Choice of domicile is voluntary and therefore this status is voluntary. All “U.S. persons” and “individuals” are government agents, instrumentalities, employees, or officers.

8

Foreign grantor trust with five or fewer grantors

26 U.S.C. §§671 to 679 26 C.F.R. §1.1441-5(e): Generally 26 C.F.R. §1.1441-1(c)(26): Definition

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Any branch of a foreign bank or foreign insurance company that is treated as a “U.S. person”

26 U.S.C. §7701(a)(30)

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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:________