My goal is to help as many people lower their taxes to the absolute legal minimum, without running afoul of the IRS
Sebastian, FL (PRWEB) June 22, 2008
These common tax scams can often seem like legitimate tax savings, but will usually result in costly problems with the IRS. These problems can include audits, penalties, and interest payments.
Many American business owners and individuals are tired of paying such high rates of taxation, and are looking for a way to reduce their annual tax bill. However, in their search for lower taxes many people will fall prey to many common scams that may promise a lower tax bill. In the end, these scams are always more trouble than they are worth.
Pathfinder Business Strategies is owned by Drew Miles, who is known as the Tax Savings Attorney. "My goal is to help as many people lower their taxes to the absolute legal minimum, without running afoul of the IRS," said Mr. Miles. "I don't want anyone going through an audit or facing IRS penalties, so I want to explain the more common tax scams to look out for."
One of the most common scams comes from those who oppose any sort of taxation by the IRS. They claim that the tax code is unconstitutional, and that filing is completely voluntary. Whether or not the law is on their side, one thing is perfectly clear: if you don't file your taxes, the IRS is going to come after you. A similar scam is to file a "zero return" claiming no income. This raises a huge red flag with the IRS, can cause a lot of unnecessary legal trouble.
Another common scam comes from those who prepare tax returns, and claim they can greatly reduce your taxes or promise you a large refund. Dishonest return preparers can cause many headaches for taxpayers who fall victim to their schemes. Such preparers derive financial gain by skimming a portion of their clients' refunds and charging inflated fees for return preparation services.
Taxpayers should choose carefully when hiring a tax preparer. As the old saying goes, "If it sounds too good to be true, it probably is." And remember, no matter who prepares the return, the taxpayer is ultimately responsible for its accuracy. Since 2002, the courts have issued injunctions ordering dozens of individuals to cease preparing returns, and the Department of Justice has filed complaints against dozens of others. During fiscal year 2005, more than 110 tax return preparers were convicted of tax crimes.
Yet another common scam involves offshore transactions. Individuals continue to try to avoid U.S. taxes by illegally hiding income in offshore bank and brokerage accounts or using offshore credit cards, wire transfers, foreign trusts, employee leasing schemes, private annuities or life insurance to do so. The IRS and the tax agencies of U.S. states and possessions continue to aggressively pursue taxpayers and promoters involved in such abusive transactions. If you think that an offshore account is the ticket to lower taxes, you need to think again.
Pathfinder Business Strategies has taken a different approach to helping their clients and students achieve the tax savings they are looking for. Pathfinder students are shown how to take advantage of the overlooked legal tax deductions, which can drastically reduce their taxable income.
"The most powerful tax saving strategy available is to clearly understand the distinction between your personal and business expenses, and work to legally convert your largest personal expenses into legitimate business expenses. It's the small items that most preparers overlook that add up to big savings," Said Drew Miles.
"When you apply legal tax saving strategies to your finances, your taxes will not only be lower than if you had listened to any of these unscrupulous tax scammers, but you will not have to worry about being challenged by the IRS."
Pathfinder Business Strategies is offering a complementary CD titled "Tax Secrets of the Rich" to those who are interested in learning legal, proven strategies for legitimate tax savings.
To learn more, claim your Tax Savings Special Report.