Tax evasion is not a term you look up hoping to save money on your taxes. If you are planning to evade taxes sooner or later you will find yourself in serious legal trouble. Tax evasion or tax fraud, is the purposeful and illegal attempt to evade paying the tax you owe to the federal government. The truth is that a tax evasion conviction is a disaster.
Consider the case of actress and eight time Grammy Award Winning singer Lauryn Hill. She was caught not paying taxes on about $1.8m of her earnings between 2005-2007, and then charged with tax evasion. It took until 2013 for the IRS to wrap up their case against her. Then during the sentencing phase of the trial, despite her assurances that her outstanding tax liabilities had been entirely paid, she was sent to prison for three months, plus another three months of house arrest. In the end, simply paying the tax wasn’t enough. This is a tax evasion education that nobody wants to get.
How do people get led away by tax evasion ideas? Think about it. We pay taxes, and then we pay more taxes. There is income tax, sales tax, death tax, gift tax, property tax, an SSI tax, and the list goes on and on. Your mutual funds are taxed, as are your stocks, real estate, and almost everything you can think of. Think about how taxes impact for your lifetime investment returns. Most people don’t even understand the true impact taxes have on their lives.
If you are trying to save money on taxes, there are legal tax avoidance methods you can use that make good sense. I like to point out that there are actually two sets of tax laws. The laws the rich use and then the laws the rest of the folks use. One set lets you make money in the system, and the other set lets the IRS take it away. Your ability to accumulate wealth and protect your financial future is directly proportional to how well you use the tax laws. The wealthy “set of laws” is just as “legal” as the other set, but they are kept under the radar and most people never see them. If you learn and use these laws, you will build more wealth. This is not tax evasion.
Think for a minute how it would be if you just didn’t have to pay all of your money out in taxes. Well you can do this without tax evasion. There are laws governing taxes. You need to know how to use these laws for your benefit. I have created a set of Ten Tax Tips that you can access for free. If you want to save on taxes take a look at these tax tips. These are tips you can use immediately. They could mean the difference between success and failure for you and your business.
By Lee Phillips