If You Make Over 100K, How Can You Keep Your Money?

You hear the argument each time. The IRS and the government tax everybody else and collect more money from the poor than they do from the rich. So that they do not need to settle any taxes, the rich are always utilizing tax loopholes. They are getting away with criminal activities!

Sometimes this is true. Tax professionals can determine tax loopholes to keep their clients' money out of the IRS's hands, and most people who earn more than $100,000 yearly can avail of their counsel. Over the years, there have really been numerous abuse. But currently, 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 wish to pay less to the government by decreasing tax liability. You will also end up in prison if you move illegally. For the IRS to stay away, there are some steps you must avoid and various steps you can do to safeguard yourself.

People who make over $100,000 every year pay nearly 60% of all taxes. The people within this ranger have a higher danger of being audited because the IRS focuses their effort on them. In case there's an IRS problem or audit, always keep important records to use as reference and keep your exposure to a minimum.

How they're cheating the IRS of taxes through offshore accounts are what most people like to show off about. These people usually get caught. This is because the IRS has a fraud hotline where anyone who turns in such offenders are rewarded up to 10% of the amount collected. Such offenders can get what they deserve if you keep your ears alert.

Have you ever heard of a 'secret' way to avoid paying all of your taxes, or any other such strategy which can let you not pay the IRS anything at all? The tax code is available to anyone who wishes to study 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 you face rejection, you can be penalized up to $25,000 for obviously wasting the government's effort with a frivolous tax return.

A loophole that business owners typically abuse is the deduction of business expenses. They commonly attempt to deduct personal expenses as business expenses, prompting the IRS to audit them. It is best to distinguish between business and personal expenses if you do not want IRS problems on your hands.