Money Laundering & State Laundering
Your attention is directed to IRS News Release IR-2006-70 (27 April 2006), which announces information-sharing agreements between the IRS and 33 states and Puerto Rico to combat money-laundering activities.
Quoting from the News Release:
"Along with Puerto Rico, the following states have signed partnership agreements with the IRS: Alabama, Alaska, Arizona, Arkansas, California, Connecticut, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont, Washington, West Virginia, Wisconsin and Wyoming."
So, in addition to Puerto Rico, there are 33 states that are in on the deal. Which leaves 17 that are not.
So far, so good.
But the news release goes on to state:
"Colorado, Hawaii, Montana, New Hampshire, New Mexico and Montana cannot enter into these agreements with the IRS because either state law prohibits them from doing so or they do not regulate the industry."
Never mind that Montana is enumerated twice. The IRS press release still has not accounted for the following 12 states:
So if you are going to launder money, you now know the states where it is safer to do so.