Tax Savings and Asset Protection Report
We can help you keep more of the money you make AND help you pay Less Taxes. Since 1998 we've helped more than 7000 Clients Save Half a Billion Dollars In Taxes.
Imagine this. One of the world’s greatest thinkers had this to say about taxes:4050
“The hardest thing in the world to understand is the income tax.”
Einstein also went on to say this about filing for tax returns:
“This is too difficult for a mathematician. It takes a philosopher.”
If Albert Einstein had trouble understanding filing for tax returns, how is the average American supposed to manage?
How important is money to you?
If you’re like most people, you’d say pretty important. You work hard for your money. Once you earn it, regardless of who you are, and what you do, you should keep as much of it as possible. That sounds obvious, doesn’t it? But that’s not always the case as people often times literally are willing to give more of their money to the government than they have to. If you’d like to keep more of your money, we can help.
Notice, we said above that people are “willing to give (their money) away. ”Yes, we all have to pay taxes; there’s no doubt about that. You’d be surprised to learn that there’s nearly a 100% chance that you are paying more taxes than you have to. We know this for a fact. Since 1998, we’ve helped more than 7,000 people, just like you – business owners, doctors, lawyers, highly paid career professionals, bankers, brokers, real estate developers, men and women from a wide spectrum of business and industry, from all walks of life. Combined, we’ve saved our clients more than half a billion dollars in taxes. That’s correct, a half billion dollars.
Remarkably, one of this country’s founding fathers had this incisive insight about taxes that you’ve heard before: “In this world, nothing is certain but death and taxes.” Benjamin Franklin, one of our country’s greatest minds, legal scholars, inventors, and businessmen, was correct of course, and his quote is one of the most brilliant and acerbically cited references to “taxes” since he quipped that remark, ironically, in 1789, just one year before his death in 1790.
Paying taxes is invariably the price we pay as Americans and citizens to live in this great country of ours. And everyone has to pay “their fair share.” The problem is, that “share” has become an increasingly great and unduly burdensome amount to those who earn more than others. The “taxing system,” simply put, has become burdensome if not outright onerous.
Under today’s tax schedule, the highest earning Americans must give away at least 40% of their income to the government. If that sounds like a lot of money, you’re right. It is a lot of money. Franklin D. Roosevelt, this country’s 32nd President said, “Taxes, after all, are dues that we pay for the privileges of membership in an organized society.”
On this, I believe we can all agree. We want all the benefits and privileges of living in this, the greatest country in the world. There are bridges to build, roads to maintain, and public works projects important to all Americans. In today’s more complex world, we have to protect our borders, fight terrorism to ensure that this country remains strong and safe, and all this comes with a price tag – taxes.
But you work hard for your money, and certainly you should keep as much of it as you legally can. And that’s where we come in. As I always say, “It’s not how much you make, but it’s how much you keep.” Tax Savings Professionals helps you keep as much of the money that you earn that you are legally entitled to.
A Cum Laude college graduate and a Phi Beta Kappa academic fraternity member, I trained as an attorney and practiced in New York for 12 years as the senior partner of my own firm specializing in business and real estate. I spent five years examining the deepest depths of the Internal Revenue Tax code, ultimately discovering a treasure trove of often unused and unapplied statues by most accountants and CPAs. After years of research, I developed an extraordinary master list of more than 400 tax strategies that, today, form the proprietary intellectual foundation of the Tax Saving Professionals Tax Savings approach.
There Is a Better Way, a Smarter Way, a Proven Way to Pay Less Taxes
While most tax accountants and CPAs commonly use 15 – 20 strategies when preparing a client’s tax return, Tax Saving Professionals draws from this time-tested and proven list of more than 400 tax strategies. Additionally, the Tax Saving Professionals’ technology was created in collaboration with a team of tax and legal professionals including a former IRS Revenue Officer and a former prosecutor with the Department of Justice with a 100% conviction rate against tax cheats. Not since the inception of this company has a single strategy we have recommended for our clients been successfully challenged by the IRS.
Legal Precedent –
“It’s Your Right as a Tax Payer to Pay Your Fair Share and Not One Penny More.”*
While these strategies are not known, or, in many instances, even understood by many within the tax field, the fact is each and every strategy is completely within the letter of the law, following the statutes and codes of the IRS. There is legal precedent in the form of a well-known case that supports and defends your right to use the finer points of law and tax code to your benefit.
The desire, the ability, and the pursuit of seeking to enforce your rights as a tax payer to “pay your fair share and not one penny more” is supported and reinforced by John Maynard Keynes, the world renowned British economist whose ideas fundamentally affected the theory and practice of modern macro-economics, and informed the economic policies of governments. If his name is familiar, it should be. His ideas are the basis for the school of thought known as “Keynesian” economics and its various offshoots. Here’s what Keynes had to say about taxes:
intellectual pursuit that carries any reward.”
And finally, we’ll end with another quote that poignantly wraps up and ties in with our philosophy, our business approach, and our world view as it relates to our desire to save you money and the payment of taxes.
and true: and that is it’s your money.”
- Robert Dole
Following is a small sample of strategies we employ for our clients. Each is time tested and stands on solid legal ground; yet these strategies are underutilized by the majority of tax professionals. Some are avoided because they are considered “risky,” even though they come directly out of the Tax Code. Some are underutilized because they are misunderstood, applied incorrectly, not documented, or documented improperly. Others are missed altogether because they are simply not known to even highest paid, most respected accountants and CPAs.
As a successful business owner, you probably pay your accountant a lot of money to do your taxes. You expect that he is committed to saving you money – legally. Yet, our experience has proven that this is often not true. Most firms, large or small, are focused on tax compliance and tax return preparation. They do not dedicate their resources to maximizing the benefits available to you, their client, under the tax code. When asked about their accountant, many people respond that they are an old friend, a nice person, or someone of good standing in the community. Having a nice accountant is not an accurate test of whether you are overpaying your taxes. Simply put, the test is whether you are paying more than 30% (federal, state, and self-employment taxes combined). If you are, you are overpaying your taxes. Thankfully, you can do something about it.
Here is a small sample of the strategies you should consider:
The choice of the best business entity(ies) for your needs is important and complex. We have seen many business owners, even with the advice of counsel, make the wrong decision, or make no decision at all, by
operating as a sole proprietorship or general partnership. This can have devastating consequences both from a tax and an asset protection perspective. We have heard tax professionals counsel their clients to wait a few years before setting up a corporation in order to save the extra cost of filing a corporate return. Or they recommend “keeping it simple” with an “S” Corporation, ignorant of the insufficient protection this structure provides.
Here’s a lesson from the school of hard knocks – all it takes is one lawsuit gone bad, and the small cost of setting up the right structure will pale in comparison to the damage you incur. A single judgment could cost you millions of dollars and follow you for the rest of your life. That’s a bad trade in anybody’s book.
There are millions of lawyers in this country. Many earn their living suing people – people just like you. In fact, one in four people will be involved in a lawsuit in the next twelve months… and the statistics are even worse for business owners.
It is better to avoid a lawsuit altogether than to win after a protracted and costly legal battle.
There are powerful strategies to limit your risk and actually deter lawsuits. There is no need for risky offshore trusts and international business corporations which have come under scrutiny by the IRS and Federal Government. We use tried and true strategies and structures to enhance your wealth and protect your assets.
LLCs and Limited Partnerships come with the built-in benefit of the charging order. This can create an enormous asset protection advantage for you at no additional cost. Yet few, if any, tax or legal professionals fully understand these entities, so they leave you unnecessarily exposed.
Then there are the tax benefits. For most people, tax planning ends on December 31st of each year. That’s because December 31st is the default year end for most businesses, corporations, and sole proprietorships alike. With the proper structure, you can shift income from one tax year to another – even to a place with more favorable tax rates.
How It Works in Practice
Most people take the profit from their business at the end of the year either as a bonus or in dividends. This is done to save the FICA tax. If you just leave the money in the business at the end of the year, Uncle Sam still taxes it – either at your individual rate or at the corporate rates.
But, if you have two entities, each can have a different year end. For example, you could have an “S” Corporation with a December 31st year end and a “C” Corporation with a June 30th year end. The “S” Corporation might be your core business and the “C” Corporation is established to do your sales, marketing, or management. The first step of income shifting, “upstreaming,” reduces the taxable income in your core business. The second step is to expense off as much of this income from your management company as possible, using more of the 400 deductions contained in the Tax Code – we are focusing on only a few of these strategies in this report. This can effectively reduce your tax base to a fraction of what it would be otherwise.
“In this world nothing is certain but death and taxes.”
Franklin D. Roosevelt
“Taxes...are dues that we pay for the privileges of membership in an organized society."
“It’s your money, you should keep it.”
I am proud to be paying taxes in the United States. The only thing is I could be just as proud for half of the money.
What at first was plunder assumed the softer name of revenue.
When there’s a single thief, it’s robbery. When there are a thousand thieves, it’s taxation.
Documentation Is the Cornerstone to Audit-Proofing Your Tax Records.
Proper Tax Documentation Is Accomplished Through the Correct Use of a Tax Diary
If you are think to yourself, “What is a Tax Diary?” you are probably in trouble already. Without a Tax Diary, you can lose deductions you’ve already taken, plus be charged with interest and penalties. Yet, less than 5% of tax payers have a Tax Diary. Most have simply never been told by their accountant that they need one. The only thing worse than missing legitimate deductions is failing to document the deductions you are taking and losing an audit. This results in penalties and interest in addition to the unpaid tax. A Tax Diary records all your business expenses so, at tax time, you have a comprehensive list, with details, of each deduction.
◆ Who – did you meet with?
◆ What – did you discuss?
◆ When – the date of the meeting.
◆ Where – did the meeting take place?
◆ How much – was the cost of the meeting, meal, etc.?
You must have a Tax Diary that properly documents all of your deductions, not just the ones that Tax Saving Professionals teaches. Our point is this: if your current tax professional has not insisted that you keep a Tax Diary, or they keep one for you, then they have left you dangerously exposed.
A Tax Diary actually gives you a legal advantage concerning the burden of proof. You are probably aware that in a criminal matter, the accused is presumed innocent. The burden is on the State to prove the person’s guilt. In other words, the burden of proof is on the State to prove that the crime was committed.
Yet in tax matter, the opposite is true. The burden of proof is on the tax payer to prove the legitimacy of each deduction that he took. This burden is very difficult to overcome so, in an audit, the agent has the upper hand.
Unless that is, you have a Tax Diary. The Tax Diary actually shifts the burden of proof from you, the tax payer, to the IRS. This tilts the tax laws in your favor. This advantage is so great that it will bring an audit to a quick and favorable conclusion.
Make Your Company Work for You, Not the Other Way Around
Corporations were created to protect the assets of you, the business owner. Yet many people unwittingly lose that very protection by failing to conduct and document their annual meetings. The business corporation laws of each state require compliance with certain corporate formalities, such as corporate minutes, resolutions, and minutes of shareholder meetings. Most business owners do not realize this and their tax and legal professionals fail to advise them of the consequences. Imagine what would happen if you were ever sued and the judge disregarded your corporate protection by “piercing the corporate veil” because you didn’t follow these necessary corporate formalities. You could lose everything to a money judgment including your house, your car, and your bank accounts.
Consider this. If your corporate book is collecting dust somewhere in your house, or, worse yet, on a shelf in an attorney’s office, you should be concerned. You must immediately update those corporate records and keep them in good order.
There is also a tax benefit for adhering to these requirements. Conducting your annual meeting in an appropriate setting is a legitimate business reason to travel. So, why not hold your annual meeting in a resort setting? For example, you could bring your entire family to Aspen, Colorado or Orlando, Florida. By conducting your annual meeting there, updating your corporate records, discussing marketing ideas, and perhaps creating a new business plan, most of the trip (including the fun activities) can be deducted through your corporation. There are specific rules that must be followed. They are simple and our team will gladly explain them to you.
When I graduated from Law School more than 25 years ago, I called my accountant and asked if there was a way to write off the cost of my education. Today college costs can run between $20,000 and $40,000 per year! I was told that my tuition was not deductible. I pushed back and said, “But I’m in business for myself now, isn’t that a legitimate business expense?” With a knowing smile, my accountant said, “No. Welcome to the real world.” What I painfully learned later was that my accountant was wrong! Let us show you why…
In fact the Tax Code provides at least four different ways to pay for education – both for you and your children. By hiring your children, their salary can cover the cost of informal education like music lessons, karate, and dance. There is the Educational Assistance Plan (Sec 127) which can cover up to $5,250 in educational expenses. With some advanced planning (3-4 years), Tax Saving Professionals’ strategies can help you pay for some college and graduate school with pre-tax dollars.
This strategy is often advised against for one of two reasons: it is either considered “risky,” something to be avoided for fear of raising “red flags,” or it is labeled “not worthwhile,” as the savings are too small. Yet, neither of these statements are true.
IRC Section 280 clearly states that, as a business owner, you are entitled to have a home office. In “Commissioner v. Soliman,” 506 U.S. 168 (1993) with an update to the code the same year [280 (A) (c) (1)], the law clearly allows you to have both a standard office and a home office. There is nothing inherently risky about this deduction at all. The problem is most people don’t keep proper documentation, yet the home office is no different than most other deductions they take. (We’ll discuss the need for proper documentation later in this
report.) The answer is not to avoid it (and lose out on a perfectly valid deduction); the answer is to learn to do it properly and safely reap the financial benefit.
Even people who do take this deduction are grossly underutilizing it. That is because, in addition to the actual “office space” (usually about 150 square feet), there are “bonus deductions” that can also be added. For example, you can deduct the hallways, closets, foyer, and stairway. If you use a shed, garage, or basement for areas of business, they can be deducted. The computer, phone, fax, office desk, bookcase, books, instructional programs, snacks, and certain meals are also deductible. Combined, these items can bring the value of this deduction from $1,500 to $2,000 a month (or more). That’s $24,000 a year in deductions! To us, that’s real money and a worthwhile deduction to implement.
It’s Not Your CPAs Fault
Most accountants and CPAs are pulling from a list of 15 to 20 deductions – the most typical and well known. Yet that is not even a fraction of what is available in the Tax Code. There are more than 400 legal deductions available when properly implemented and documented.
The majority of a tax professional’s work occurs in that two to three month period culminating on April 15th – tax day. They may have to prepare several hundred returns in that short period of time. They often “staff up” with temporary workers and work 80-90 hours a week just to keep up. It is impossible for them to provide you with the level of research and analysis you would expect.
Additionally, CPAs and tax professionals have been deputized by the IRS, which severely penalizes them for submitting returns with questionable or undocumented deductions. This forces them to play it ultra-safe because most people do not have the proper documentation. One report found that “The IRS maintains that CPAs should have loyalty to the U.S. tax system and act as government agents.” (Brody and Masselli 1996, IRS). Most people find it stunning to learn of the extent to which their CPA has effectively been handcuffed by the IRS.
You are probably getting a sense that you are not taking every deduction legally available to you and, as a result, you are significantly over paying your taxes. We covered only five strategies in this report, yet there are over 400 distinct deductions available to you in the Tax Code! These deductions – alone and in combination with one another – can cut your taxes in half. You’ve seen by the case and tax law citations given, these strategies are all legal and have withstood the test of time. Not one of the strategies we teach has ever been overturned
in an audit.
The key is having the right documentation. If you do not already have a Tax Diary, you need to put one in place immediately. Without it, you have been left grossly exposed. Throughout this report you have learned about the need for proper entity structuring, and the disasters that come from not heeding that warning. Structuring your business and assets properly can provide superior asset protection and peace of mind.
We have only scratched the surface of all the benefits that are available to you. Whether you make millions of dollars a year or you are just getting started, you qualify to use these strategies to save yourself money.
At Tax Saving Professionals, we apply years of extensive, in-depth knowledge in specialized areas of the tax code to help you identify the often missed and underutilized deductions you are entitled to take. And through the combination of powerful tax strategies and a comprehensive wealth management plan, you can reduce your taxes, protect your assets, and build lasting wealth for generations to come.
No two individuals are the same. Everyone’s circumstances are different. There is no one-size-fits-all solution to wealth management. That is why we thoroughly analyze and scrutinize our clients’ past tax returns, credit card statements, and bank statements to find all of the deductions they are entitled to and develop a unique, customized tax saving and wealth management plan.
You can’t accomplish this feat alone. It requires a team of financial professionals, working together, which analyzes your unique assets and circumstances. At Tax Saving Professionals, we take a holistic approach to your tax planning, business strategies, and wealth management to uncover your hidden wealth and discover thousands of dollars for you. Our comprehensive team of CPAs, tax attorneys, financial planners, and insurance planners work together to maximize your wealth through the strategies of financial success to protect and grow your wealth for generations to come.
And we promise two things that nobody else in the industry will: We guarantee our tax savings and planning, and we provide audit insurance to keep your mind at ease.
At Tax Saving Professionals, our team is your team. To speak with one of our Tax Saving Consultants today, call us at 772-257-7888 to find out how Tax Saving Professionals can help you uncover your hidden wealth.
We look forward to helping you reach your financial goals.
President and CEO of Tax Saving Professionals