The IRS Collected $4.9 Trillion From Taxpayers

Yes, you read that correctly. The IRS collected $4.9 trillion in 2022 from tax return filings. The collection amounts have increased year over year for several years.

Some may think that's a good thing because it means people are making money. You don't pay that much in taxes if you aren't making money right? That's partly true.

Here's the truth. Many high earners pay way more in taxes than they are required to while others are paying little to no taxes at all. The difference is one does proactive tax planning and the other does not.

The IRS does proactive tax planning. They already know what percentage they want to take from you depending on how much you make and the type of income it is. They base their money on progressive tax brackets. The more you make, the more they take.

They crafted the tax code describing instructions on how to minimize the amount given to them compared to their intended collection. The tax code is full of instructions on how to avoid paying taxes.

They also created a licensed credential for people to qualify as tax experts, Enrolled Agents. Enrolled Agents specialize in understanding tax law. The IRS calls them Americas Tax Experts.

The IRS put everything in place to help you pay the least amount in taxes, but people still over pay them every year. Why? Because they are not working with a tax strategist who understands tax law.

Whether you are working with a CPA or an Enrolled Agent, make sure you are working with someone who understands tax law and can strategize to help you pay the least amount in taxes.

Are you looking to start proactive tax planning in 2024?

Karitsa Kerns is an Enrolled Agent and Tax Strategist who specializes in reducing tax liabilities through proactive tax planning tailored for each unique individual. As an Enrolled Agent licensed through the Internal Revenue Service, Karitsa can represent taxpayers in all 50 states. As the owner of KNK Tax and Accounting Services, she provides services ranging from Tax Advisory, Fractional CFO, Tax Planning, Tax Preparation, and Tax Resolution.

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If you are a H.E.N.R.Y (High Earner, Not Rich Yet), working with an expert who specializes in Tax Strategy makes all the difference in your bank account. At KNK Tax and Accounting Services we provide quality services, and educate our clients to contribute to the success of their business. Please visit us at knktaxaccounting.com for more information or to schedule a consultation.