BREAKING NEWS: The Rich Evade Taxes. Say it ain't so!

An investigative paper prepared by the National Bureau of Economic Research discovered that the rich evade taxes very well. Shocking, I know. I wish you could see my shocked face. They employ sophisticated tactics that the bulk of audit activities miss. Now, what does this mean for you?

1. Well, if you are a high earner (even if you honestly pay your taxes) it means that additional enforcement and random audits on High Net Worth taxpayers is on the way. Our government is starved for money, and a reveal like this paper means they have a viable method to collect. It also means that, depending on the economics, the IRS may finally do what they have always threatened and hire specialized and well trained agents to counteract tax-dodging methods. These agents will not simply gloss over complexities they don’t understand, they will dig. Better lawyer up now.
2. If you are a more modest earner the outlook isn’t much brighter. Low hanging fruit is much easier to reach, and the IRS knows they can settle and collect on many more “little” cases that add up to BIG balances over time. These audits do not require employing expensive staff, and they know that in many situations modest earners simply cannot or will not fight. Better lawyer up when they come.

Have tax questions or concerns? Reach out to Goldburd McCone LLP at the link below. #alltaxallthetime #dontbeataxpuppet