Yellen Says U.S. A Leader in Tax Fraud and Money Laundering

US tax fraudIn a speech, the U.S. Treasury Secretary pointed out that the U.S. is a leader—in tax fraud and money laundering.


Understanding legitimate and illegitimate uses of foreign bank accounts and offshore tax investments is important. Our tax attorneys work with individuals and businesses to maintain compliance and nurture wealth through these tools. We also provide robust criminal tax defense to clients and organizations who face allegations of tax crime and money laundering.


We recently discussed the Cowboy Cocktail, a Wyoming-flavored combination of trust options and high wealth, mixed in an environment of opacity and minimal regulation.


In December 2021, President Biden invited world leaders to the first time Summit for Democracy, a two-day opportunity for dialogue on issues pressing global democracy. The Summit attracted 275 participants from a wide variety of backgrounds including world leaders, legislators, human rights activists, and many more. It was within this context that Secretary Yellen had the opportunity to discuss the state of global corruption and money laundering.


During her remarks, Secretary Yellen outlined new steps intended to fight the enormous flow of money out of legitimate tax jurisdictions and into secrecy jurisdictions—like Wyoming. In her presentation, the Secretary took a square shot at the U.S., noting, “There's a good argument that, right now, the best place to hide and launder ill-gotten gains is actually the United States.


Coming from a top governmental official, her comments frankly underscore the fact that U.S. and foreign citizens need look no further for protective opacity than Nevada, Delaware, Wyoming, and South Dakota, among others.


She added, “The United States cannot be a credible voice for free and fair government abroad if, at the same time, we allow the wealthy to break our laws with impunity. If we want free institutions to thrive the world over, then first, we must model what they look like at home.”


Some of the tools mentioned by Secretary Yellen include creating new legislation, enforcing existing rules, increasing sanctions, and establishing new programs under the State Department and the U.S. Agency for International Development (USAID).


Flowery language or actual intent? Offshore (or onshore) tax accounts are legal, to a point. Talking about the problem raises awareness, but time will tell if the initiatives described by Secretary Yellen have an impact at home or overseas.


Skilled legal guidance with tax litigation, compliance, and foreign bank accounts

Serving local and international clients from offices in Chicago and Cleveland, the legal team at Robert J. Fedor, Esq., LLC helps you respond strategically to questions about IRS audits, bankruptcy, or IRS criminal tax investigations. Call 800-579-0997 or contact us today.


Understanding Tax Fraud