I made a lot of money. Then I lost it all. It still hurts thinking about it, and it’s still difficult to admit. However, I’ve been blessed to have had a second chance at recovering financially. I would like to share with you how I've been able to recover, and how you can too.
Be Careful Who You Listen To
On my journey back to financial health, I learned some vital lessons. Allow me to share two of the most important lessons with you right now.
First, I discovered that America is full of financial victims. Many of us fall prey to so-called “experts” who sell financial information for a living, but in reality they never actually do what they preach. And we fall victim to financial advisors – some are even well-meaning – who turn financial decisions into utter financial waste.
Radically Lower Your Tax Liability
Second, when it comes to wealth building, the most overlooked, and sure-fire component to increasing income is learning how to dramatically slash your income tax liability. In short, keep more of what you earn. There exists a set of easy to follow principles that work all the time for all people of all incomes. These tax reduction strategies are legal and ethical.
After learning how to lower my taxes to the maximum extent allowed, I vowed to teach others the same “found money” strategies. Candidly, these tax reduction strategies are embarrassingly simple, and proven to work. The truth is, the rich routinely use these strategies, and that’s why many of them are rich or stay rich!
The Big Lies
However, I meet very few people who actually know about these tax reduction strategies, much less follow them. People are often surprised, and even skeptical, when I explain how the tax code can literally put money in your pocket. Unfortunately, people buy into myths which are devastating to wealth building.
Why is that? Why do most taxpayers fail to maximize their legal right to pay as little as the tax code allows?
Based on my own search for the truth and based on advising thousands of clients over the years, I’ve reached the conclusion that there is a silent conspiracy between the IRS and the media as it relates to how to save taxes and how get out of tax trouble with the IRS. Look, I’m not a “conspiracy buff” of any sort, but how else do you explain some of the outrageous myths propagated by the mainstream press? How else do explain why the IRS never bothers to correct obvious misinformation, or why they fail to publicize elegantly simple tax deductions.
My personal opinion is that most journalists have an anti-wealth, socialist philosophy. Even though the tax reduction strategies exist for everyone, they deem these strategies as somehow immoral, as dirty. Everyone should pay their “fair share” and in their view if you are paying less than your neighbor, that’s wrong. So anyone who stands for the proposition that the government should only get what they are legally entitled to, is not embraced by the mainstream press.
For example, I remember one particular article in Money Magazine on the topic of what to do if you can’t pay your tax liability. The journalist got “help” from an IRS Revenue Officer. What the IRS Revenue Officer advised, and what the journalist wrote, was shockingly wrong. The conclusion of the article was that if you can’t pay your tax liability, you should pay as much as you can, even borrow from your 401K, and then hope that the penalties are not too overwhelming. What the article failed to mention is that there is a simple form that permits taxpayers to file their returns without penalty when they don’t have the money to pay the tax.
So based on 18 years of teaching people how to fight back against the IRS and how to legally pay the minimum tax liability, I have observed five big lies keeping people from getting out of IRS debt, or keeping people from putting money in their pockets:
Lie # 1. “I owe the IRS, so I’m just going to have to pay them what I owe.” This is not true. The fact is that Congress passed seven laws which allow taxpayers to wipe out tax liability completely, or settle with the IRS for a fraction of what you owe. In fact, the IRS “playbook” (also known as the Internal Revenue Manual) requires the IRS to consider settlement of tax liability for less than you owe.
Lie # 2. “I’m a salaried employee so there is not a lot I can do to pay less in taxes.” I hear this one a lot, and it is just plain wrong. The tax code can benefit the employed as well as the self-employed.
Lie # 3. “I didn’t make a lot of money last year, so the tax reduction strategies don’t apply to me.” Totally false. The fact is, you can use business losses to offset other income and even other tax years when you did make money.
Lie # 4. “My accountant takes care of these things, I don’t want to be a tax expert.” I'll be blunt, ignorance is a dumb way to go through life unless you are content to give thousands of dollars away to the government instead of keeping it for yourself. Make no mistake, it is embarrassingly easy to follow basic tax reduction strategies, and the fact is most CPAs are woefully misinformed when it comes to slashing tax liability.
Lie # 5. “Even if I do use these strategies, it’s not going to save me that much money anyway.” This is the granddaddy of all lies. The amount of money that will pass through your hands over a working lifetime is incredible. You acquire wealth not because you make more money than the next guy or gal, you become a millionaire because you save more, and invest more. This is a statistical, and undeniable fact of financial freedom. I can show almost anyone how to use tax reduction strategies to put real dollars in their bank account, and use this “found money” to accumulate wealth.
In honor of "tax day" in April, I’ll be writing more on this subject in the coming 30 days. So stay tuned. In the meantime, if you have a tax question or tax problem, I would love to talk with you. You can speak with me for free by calling 800 659 0525.