Many years ago, I was at a seminar and someone asked the speaker what effect asset protection had against the IRS. His response was that the “IRS is like any other creditor and will have to get in line.” That may have been true then, but not today. Fifteen years ago, tax evaders received maybe two years or less in jail. Today, it is seven to 10 years. Penalties used to be something that was added on to discourage cheating. Today, penalties are a major source of IRS revenue. It is almost impossible to not pay them.
Whereas asset protection techniques may work against the IRS in the short run, in the long run they work against the person who put them in place. Unlike other creditors the IRS never goes away. They will follow you to your death and then go after your heirs. In the meantime, the IRS has a mind boggling array of penalties and fines that can increase the taxes owed by ten times in a very short period. Over the years, many potential clients have come to us owing the IRS many, many times what the original tax was. They have decided to stonewall the IRS, hide, take money under the table, etc. And the only thing that has happened is that the tax keeps increasing and the IRS keeps pursuing.
For those who want tax reform, refusing to pay taxes is probably not the way to accomplish it. The reform needs to happen by electing congressmen and women who want change and will make it happen. They are the only ones who can do this. To date, none of them seem to want to do it once they get elected. With the deficits our country is running, it is no wonder.
Unlike many countries where tax evasion and avoidance is not a crime, it is in the United States. In many countries, it is quite common to brag to your friends and co-workers how you did not pay taxes. However, in the United States that is not really the case. Most people here are not in favor of those who illegally fail to pay taxes
U.S. tax evaders do not get much sympathy from the tax-paying public.
The goal of this web site and our skills in asset protection is not to help people avoid paying taxes. Please do not ask us to assist you. We will not do so. It is our feeling that all U.S. reporting requirements must be complied with and all U.S. taxes must be properly reported and paid.