How To Keep Your Money If You Earn Over 100K

The case is definitely common. The rich gets away with settling taxes because of all the tax loopholes. As a result, the poor ends up giving more money to the IRS than they do!

The system has been abused over the years. Tax professionals can definitely find loopholes to let people pay less taxes. However, only the people making at least $100,000 yearly can afford them. Taking advantage of a loophole and acting illegally are considerably different. If you wish to pay less taxes while keeping the IRS away or staying out of prison, there are various steps you must avoid and some steps you can do.

People who make more than $100,000 each year pay almost 60% of all taxes. Because the IRS focuses their attention on people within this bracket, they have a higher likelihood of being audited. In case there is an IRS problem or audit, always save important records to use as reference and keep your exposure to a minimum.

How they are cheating the IRS of taxes with offshore accounts are what most people like to show off about. These people typically get caught. This is because anyone who reports such offenders are rewarded by the IRS of up to 10% of the amount settled through their fraud hotline. Such offenders can get what they deserve if you keep your ears open.

You have likely heard of 'secret' ways and strategies to avoid paying taxes to the IRS. The tax code is on hand to anyone who wants to study it. Do you really believe there are various secrets out there? Almost all of these 'secret' methods that are being sold to people wanting to keep their money out of the government's hands have been rejected by the IRS, and then again when the problem was brought to court. Not only will you face rejection, you can be fined up to $25,000 for blatantly wasting the government's effort with a frivolous tax return.

The deduction of business expenses is a loophole normally abused by business owners. The IRS has cause to audit them when they try to deduct personal expenses as business expenses. If you don't want IRS problems on your hands, it's best to distinguish between personal and business expenses.