Be wary of BIG HAIRY AUDACIOUS PROMISES taxpayers. Remember, if it sounds too good to be true, it probably is.
As a follow up to last week’s blog about finding a reputable tax preparer, this week I want to discuss the plethora of online ads offering solutions whereby you can drastically reduce and sometimes complete avoid paying any income taxes. These companies are spending SO much money to get their hands on yours.
No one can promise you that they can reduce your taxes by a fixed amount as advertised like 40%. It is not possible. It is simply not true. It is not responsible and these people should not be trusted.
Now if I look at your prior returns and current financials and THEN promise a 40% reduction in taxes, that is different as I have the information to make that clear statement. Do you see the difference?
Most prospects that I meet with I say the opposite – I am not sure that I can save you ANY money at all in taxes until I have reviewed your financial situation. Got it?
Same as the S Corporation promise. Usually an S Corporation does save some taxes for business owners but not always and it depends how much based on your personal tax situation. To say that creating an S Corp will eliminate your taxes is simply not true. And what about the costs of incorporating? And the legal responsibilities? Be careful!
BHAP’s that will rob you of cash and leave you disappointed or worse, with strategies that bring the IRS to your door.
For an honest assessment of your tax situation, please do reach out to me.