What’s Your Tax Strategy?
There seems to be three tax strategies most people rely on…
1. The Compliant Taxpayer
This taxpayer is a favorite at the IRS as they routinely overpay their taxes to the IRS. According to the IRS, in 2009 nearly 80% of ALL Tax Returns filed, resulted in a refund, and the AVERAGE refund amount was…$2,675!!! You’ve got to admit… those folks at the IRS are pretty smart because they have found a way to get 8 out of every 10 taxpayers to willingly overpay their taxes by more than $200 per month, after month. Then they give them their own money back to them 15 months later and without interest, and they brag that they got a refund.
Many of these taxpayers actually think they’re doing themselves a favor by staying off the radar screen of the IRS and off the appointment schedule of the IRS auditor. In fact, they are the saddest group of taxpayers as they actually are paying for their own enslavement. Many of these people go through life without a “clue” as to what’s going on around them and seem to be perfectly happy to be under the control and direction of their slavemaster.
2. The Smart Taxpayer
This is the taxpayer that tries to understand the rules of the tax game as defined by the game maker, the Federal Reserve, and uses those rules to benefit their game action. For example, if you live in the United States or Canada and are self-employed, you can probably reduce your taxes with a small business run with an honest expectation of profit and where your expenses are ordinary, necessary, and reasonable for that business.
People who run a small or home based business now qualify for a greater array of tax deductions than any other category of taxpayer! Even the super-rich, with their high-priced tax lawyers, can’t get the tax breaks that YOU can, simply by operating a “side-business” that may take you only a small amount of time to run.
You may even qualify for these tax deductions retroactively! Most of the tax deductions and legitimate write-offs now available to taxpayers who run a small or home based business, also apply to the past 3 tax years.
3. Pay No Taxes
This is the category of U.S. citizen who believes in following the strict rule of law as laid out in the U.S. Constitution. These so-called “tax protestors” point out THERE IS NO LAW making the typical working American liable for any income tax and the IRS has NO LAWFUL AUTHORITY for demanding that you pay an income tax.