Tax Gaming, Tax Avoidance and Tax Evasion

Tax gaming, tax avoidance and tax evasion. Legal or illegal? Although all sound ominous, they’re not all illegal, but they’re all dangerous.

Defining Tax Gaming, Tax Avoidance and Tax Evasion

Tax Gaming is a new term that describes strategies used by the wealthy and big corporations to “game the system” in order to more effectively use and benefit from the TCJA tax cuts. It’s not illegal, immoral or unethical, but playing this game is highly complicated. Tax laws and rules haven’t all been interpreted. Players must be able to shift directions by having multiple options. It’s tax strategy built on an elaborate IFTTT-style design that must be closely monitored and flexible, and is played through a window of opportunity serving tax free money, deep deductions and tax benefits better than those gained by non-players.” Here are 5 things you MUST know!
Tax Avoidance, according to Investopedia, is “…the use of legal methods to modify an individual’s financial situation to lower the amount of income tax owed. This practice differs from tax evasion which uses illegal methods…to avoid paying taxes.” It’s a word not often used and a tax strategy, unfortunately, not used often enough. As with tax gaming, tax avoidance takes active participation on the part of the tax payer. Don’t pay more than you should!
Tax evasion, according to Investopedia, is “an illegal action in which a person or entity deliberately avoids paying a true tax liability…and applies to both the illegal nonpayment as well as the illegal underpayment of taxes. To willfully fail to pay taxes is a federal offense under the IRS tax code…Tax fraud occurs when an individual or business entity willfully and intentionally falsifies information on a tax return in order to limit the amount of tax liability.”

Why are they all dangerous but not illegal?

If a business owner attempts to file as a DIY’er or with the assistance of a tax person who attends a series of 4th quarter tax classes, a big-box tax filer, pop-up shop or free service, the chances of running into trouble are high. The Tax Cut and Jobs Act of 2017 offers many benefits generally more accessible by the wealthy and big business. Even the large deductions and opportunities available to smaller businesses are difficult to understand and have repercussions which should have flexible options as changes and interpretations to the new tax law continue. To use the new tax laws effectively, an individual or business must realize that they are participating in tax avoidance, and if they play it seriously, they’ve gone into tax gaming. Big business owners are serious. Remember, tax evasion is tax fraud and is illegal under the IRS tax code.

Are you 100% sure you’re fully and legally using the new tax laws?
Are you prepared for your QBI gift from the IRS?
Then my November 15, 2018 SEMINAR is for YOU!

Why should average business owners participate in tax gaming and tax avoidance?

These new tax laws are available for business owners to use as they apply to them. Failing to take advantage of (or even look at) opportunities which may be available, is almost a disservice to you, your business, employees, partners, stockholders. Everyone. A business owner who does not actively participate in their own tax planning and management generally approaches their Federal Tax with the attitude of “How much do I owe this year?” Unfortunately, most mid- to small-size business owners assume this passive role in their tax participation. Owners of large businesses are acutely aware they have been given opportunities, almost as if they, themselves, had written the TCJA for their own benefit. Many mid- to small-size business owners who typically rely on tax services, seasonal or big-box tax filers, or who are devout DIYers (and often file extensions) are missing deductions, benefits and opportunities which are mired in confusion and deadlines.

Tax gaming pieces and tax avoidance tactics

Qualified Business Income (QBI) deduction and the illusive year-end deadline
Shifting high bracket income into a zero bracket income
The IRS doesn’t want you to know this about your single member LLC
The dangerous difference between tax filing and tax preparation

You really must attend my November 15 Tax Seminar!
The IRS hopes you NEVER meet me!
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5 things profitable business owners must know about their taxes

The IRS is well aware of the filing practices of most small- to mid-size businesses, and is counting on them to NOT fully utilize their opportunities. Will your 2018 federal tax savings be as much as they should be, and how will you know? That’s a question that’s keeping a lot of business owners awake at night. If you’ve lost a night’s sleep, or you’re not absolutely sure you’ve done everything possible to use the new tax laws to your benefit, here are 5 things you must know.

If you’re a profitable business owner and you don’t fully understand tax gaming, you’re very likely to be among the losers rather than a winner. You won’t be happy with the results of your tax returns. As a responsible, profitable business owner, you definitely need to attend my upcoming tax seminar on November 15, 2018. Click here and get registered! We’re meeting in Bentonville, at the beautiful Mansion at the Orchard!

What’s the bottom line?

Whether you’re a business owner or not, every person should have a proactive, planned tax strategy. Don’t just wait for a tax person to tell you what probably happened last year and then tell you how much you owe.

Don’t let the IRS take your money!

You can have the same opportunities as my clients have to control your own financial future. I can become your CPA tax specialist and financial business and life goals adviser and you can have the control you need and want.

Our goal is to become part of your overall life and business goal planning team so that you’ll be able to establish your own goals and know that you have a trusted professional on your team. We establish and maintain a personal and business relationship with our clients. Your LIFE is your business and your BUSINESS is your life. We’re here for YOU.

Call us at 479-668-0082. Use my Calendly Page (it’s easy) to set an appointment or you can email us.