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    You are here: Build Your Business : Articles : Tax Strategies

    Tax Fears and Facts
    By Diane Kennedy
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    Fear:
    It isn't legal or ethical to save on taxes!

    Fact:
    Well, let's see what a Supreme Court Justice had to say about that.

    Justice Learned Hand said, "There is nothing sinister in arranging one's affairs so as to keep taxes as low as possible. Everybody does so, rich and poor, and all do right. Nobody owes any public duty to pay more than the law demands."

    Fear:
    How come no one else I know is doing this? It must not be right!

    Fact:
    The rich think differently about money and about taxes. TaxCents teaches the uncommon wisdom that the rich use to legally, ethically and morally reduce taxes. If you haven't heard about this, it is likely because the people you have talked with don't know these secrets.

    Fear:
    The IRS will take everything I own and put me in jail.

    Fact:
    TaxCents teaches the way to correctly take deductions so you are protected in case of audit. If the IRS were to select you for audit, the IRS would want to see that you had proper documentation. TaxCents teaches that audit defense.

    Fear:
    The IRS will audit me if I change the way I do my return.

    Fact:
    The IRS does not flag your return for audit simply if you change the amount of your income, deductions or business structures. The most common reasons for IRS audit are:

    • Mistakes made in math on the return.
    • Amounts reported do not agree to W-2s, 1099s, and 1098s reported to the government by others.
    • The return was not signed.
    • Schedules were not correctly completed.

    Fear:
    The IRS is everywhere and knows everything. They are to be feared!

    Fact:
    The IRS's audit rate is continuing to decline. When the average return is audited, most items can be handled entirely through the mail or fax. And, in all cases, you can appoint an IRS representative to handle all of the issues. The IRS will aggressively pursue taxpayers who fall in the following categories. If you want to minimize your IRS audit risk, don't do these things:

    • Form illegal/'targeted' business structures such as 'pure' or 'constitutional' trusts
    • Fail to pay payroll taxes
    • Protest taxes If you legally comply with tax law, the IRS may call you into an audit, but you have nothing to fear.

    Fear:
    It's too complicated to keep good records. I could never figure it out!

    Fact:
    TaxCents provides the education and tools you need to know to legitimately claim and keep tax deductions. And, remember you can hire experts such as bookkeepers with before tax dollars to help you keep the records you need.

    Fear:
    Getting a tax education is expense.

    Fact:
    Education isn't expensive…it's not knowing that is expensive. Plus, the money you spend for educational products and seminars is tax deductible.

    Fear:
    Tax too complicated for me!
    Fact:
    You can create a powerful team of tax advisers who take care of the details so you can concentrate on what you do best.

    Fear:
    I can't find anyone to trust.

    Fact:
    First determine what it is you need to feel trust. Sometimes a feeling of lack of trust is a good indication of your instinct and sometimes a feeling of lack of trust in others is because you don't trust yourself. Figure out what is wrong and fix it. Don't let fear stop you from you having all you deserve.

    Fear:
    I'd rather pay more and not be audited.

    Fact:
    The amount of tax you pay has nothing to do with your likelihood of being audited. The idea that it is does is a more wishful thinking…..and is just plain flat wrong!



    Search Results

    Reproduced with permission of Diane Kennedy. Diane Kennedy can be contacted at (www.TaxLoopHoles.com)

    ABOUT THE AUTHOR: Diane Kennedy, founder and owner of DKA, a leading tax strategy and accounting firm, has been involved in every aspect of the accounting industry as well as a variety of investment companies. Through her extensive study and analysis of the over 500,000 pages of tax laws, she has earned the reputation as a top tax strategist and has uncovered thousands of legal tax loopholes.

    Learn more about Diane Kennedy.


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