On the Edge
Wealth Building
Tax News and Updates
Q & A
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Question:
Is is legal or ethical to save on taxes?

Answer:
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."


Question:
Will the IRS audit me if I change the way I do my return?

Answer:
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.

Question:
The IRS is everywhere and knows everything. What should I not do?
Answer:
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.

Question:
Why is getting a tax education expensive?

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


Question:
Tax too complicated for me!

Answer:
You can create a powerful team of tax advisers who take care of the details so you can concentrate on what you do best.


Question:
I can't find anyone to trust with my taxes.

Answer:
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 Question stop you from you having all you deserve.


Question:
Can I pay more and not be audited?

Answer:
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!