How To Keep Your Money If You Make Over 100K
You hear the argument all the time. The IRS collect less money from the rich than they do the poor as the government taxes everyone else. So that they do not need to settle any taxes, the rich are always utilizing tax loopholes. These people are practicing criminal activities – and getting away with it!
Oftentimes this is true. Tax professionals can find tax loopholes to keep their clients’ money out of the IRS’s hands, and most people who earn more than $100,000 per year can afford their advice. There have definitely been some abuses over the years. But recently, the IRS has made a move to seriously crack down on the obvious abuses of loopholes in the tax code. There’s a difference between acting illegally and acting on a tax loophole if you want to pay less to the government by decreasing tax liability. If you act illegally, then you’ll also end up in prison. For the IRS to stay away, there are various things you must avoid and a few things you can do to safeguard yourself.
A good idea is to try to lessen your exposure as much as possible. People who make over $100,000 yearly pay nearly 60% of all taxes. The IRS exerts a substantial amount of effort on this. People who earn over $100,000 yearly have more danger of being audited, in correlation. In case of IRS problems or an audit, detailed records that can be referenced are pertinent.
How they are cheating the IRS of taxes via offshore accounts are what most people like to show off about. These people normally get caught. This is because anyone who reports such offenders are rewarded by the IRS of up to 10% of the amount settled through their fraud hotline. You may need to keep your ears alert for such offenders.
You’ve likely heard of ‘secret’ methods and strategies to avoid paying taxes to the IRS. The tax code is available to anyone who wants to examine it. Do you truly think there are various secrets out there? These ‘secret’ ways sold to people have been rejected by the IRS and in court. Not only will they be rejected, but if the issue is so blatantly a waste of the government’s effort then you could be fined or penalized up to $25,000 for filing a ridiculous and fraudulent tax return.
The deduction of business expenses is a loophole commonly abused by business owners. They normally attempt to deduct personal expenses as business expenses, prompting the IRS to audit them. It is best to draw the line between business and personal expenses if you do not want IRS issues on your hands.
Filed under Blog by on Oct 1st, 2009. 
