Don't Be So Trusting

For several years, I have been warning against the use of offshore and some other bogus types of trusts to avoid income taxes. Just as with my warnings about other tax protestor schemes, it has been hard for people to believe me because the promoters have been allowed to sell their products supposedly free from IRS challenge. I have always believed that the official IRS tactic, to ignore tax protestors, had the wrong effect. To many people, silence signifies agreement.

A little over a year ago. I shared some IRS announcements to the tax practitioner community of their intent to get aggressive in attacking abusive trusts. Well, that time has arrived. This article is another in a growing series describing that IRS has now advanced to the next level in its attack on trusts. The old gray bar hotel is receiving plenty of new occupants.

As I explain to people who fall for the tax protestor lie that paying taxes is voluntary, we do have an opportunity to pay voluntarily. However, for those who fail to volunteer, IRS will do everything in its unlimited power to destroy your life and take everything you have.

Here is more explanantion of abusive trusts from the IRS Criminal Investigation Division.

I hate sounding like a broken record; but there are plenty of very legal methods to reduce or often eliminate taxes, without having to resort to these kinds of illegal means. In fact, the setup cost to do something legal, such as set up a corporation, is much less than what the tax protestor promoters charge for their untaxing programs. The added bonus of not worrying about losing your freedom or your life is, as the Visa commercial says, "priceless."

KMK
- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 12/12/2000 02:20:00 PM Send this post: