How do states with no income tax investigate tax evasion and money laundering?

380 views
0

What alerts them to start investigating? How do they combat tax evasion and laundering since they are an ideal location.

Don’t know where else to ask this. If you know please recommend me some subs lmao.

In: Economics

States that have no income tax just have no income tax at the *state* level. Federal taxes still apply as normal. Money laundering can be handled by FinCEN, the Treasury’s bureau specializing in that very thing, and they may either be directly involved or assist local law enforcement on the subject. States without income taxes don’t necessarily make for an easier time laundering, as the whole point is to obscure the origin of money through a complex and complicated series of transactions and transfers, but a lot of people still aren’t that bright and will flaunt their underhanded wealth by buying things way out of their league that initially arouses suspicion among neighbors and local law enforcement, or dumping money wholesale into their bank account and I believe banks are required to watch for this sort of suspicious activity.

As for taxes, states without an income tax still have other taxes, that’s how they’re funded. If those taxes aren’t being evaded they have zero interest in being involved. It is up to the feds to come after you for evading your federal taxes. That’s not that hard to do, and this is why some corporations use offshore accounts and subsidiaries in “tax haven” countries to circumvent taxes rather than just basing in a particular state.