What Does It Take To Pay Zero Taxes

What Does It Take to​ Pay Zero Taxes?
How many times have you​ heard someone say,​ I​ don't pay any taxes .​
My accountant takes real good care of​ me .​
I​ haven't paid a​ dime in​ taxes in​ years.
Does that outrageous statement sound familiar?
Maybe it's your brother-in-law,​ or​ a​ fellow Soccer Mom,​ or​ a​ co-worker at​ the​ office.
And so you​ think to​ yourself,​ What am I​ doing wrong? How come I'm paying taxes and so-and-so says he/she pays nothing? How do they do it!
Is it​ really possible to​ pay zero taxes?
For purposes of​ this article,​ let's give your no-tax friend or​ relative a​ name .​
Let's call him Charlie (or if​ he is​ a​ she,​ just think Charlene).
OK,​ what is​ Charlie up to? What's his secret?
Charlie has no secret .​
He's not doing anything that you​ should be doing .​
Do not be envious of​ Charlie,​ and here's why .​
I can think of​ at​ least five reasons you​ should ignore whatever Charlie says about his no-tax situation.
REASON #1: Charlie is​ a​ liar .​
Every family has one,​ so don't feel bad .​
Let's face it,​ some people just like to​ indulge in​ fabrications to​ make themselves feel good .​
Charlie is​ telling you​ a​ big fat lie because Charlie has issues .​
'Nuff said?
REASON #2: Charlie is​ pond scum .​
OK,​ hear me out on​ this one .​
I​ don't mean to​ offend you​ if​ Charlie is​ a​ close and dear relative,​ or​ your best friend,​ but I'm going to​ give it​ to​ you​ straight: Charlie cheats on​ his tax return,​ and he cheats big time .​
There are plenty of​ folks out there like Charlie .​
He's one of​ the​ reasons that you​ and I​ pay so much in​ taxes -- he doesn't report all his income,​ and he deducts bogus expenses by the​ thousands.
He and his accountant may even be in​ cahoots on​ this .​
Charlie brings in​ his records and his accountant crunches the​ numbers,​ then calls Charlie and says,​ you​ owe $5,​000 .​
So Charlie rummages around in​ his files and somehow manages to​ come up with another batch of​ expenses that miraculously
reduce his balance due to​ zero .​
It's like magic!
End result: Charlie's tax return is​ a​ big lie.
Charlie is​ a​ thief .​
Charlie should be put in​ jail for the​ tens of​ thousands in​ taxes he has illegally withheld from the​ government over the​ years.
REASON #3: Charlie is​ stupid .​
Again,​ I'm sorry if​ I'm being too hard on​ Charlie .​
But some people are so clueless about taxes that if​ they have no balance due on​ their return,​ or​ if​ they are getting a​ refund,​ they mistakenly believe they didn't pay any tax that year.
And believe it​ or​ not,​ this is​ actually a​ very common misconception that thousands of​ people cling to​ .​
Ah,​ to​ be so blissfully ignorant!
I hope you​ are not so naive to​ think that the​ bottom line on​ your tax return tells the​ whole story about your tax liability .​
It doesn't.
REASON #4: Charlie is​ broke .​
Charlie may actually pay zero taxes because --are you​ ready for this one? -- Charlie doesn't make any money!
Charlie owns a​ small business or​ works full-time at​ his self-employment activity,​ and Charlie may rake in​ hundreds of​ thousands in​ income from sales of​ his product or​ service -- but Charlie's business spends more than it​ brings in,​ and Charlie's business has a​ loss every year.
So Charlie doesn't really have a​ tax problem .​
Instead Charlie has any number of​ other problems .​
He has a​ marketing problem,​ or​ a​ management problem,​ or​ a​ personnel problem .​
Charlie's business is​ failing,​ and paying zero taxes is​ just a​ symptom of​ a​ business that will eventually close.
REASON #5: Charlie is​ just scraping by .​
Charlie's business may not be losing money every year,​ but it's not really making much either .​
He has a​ small profit -- enough to​ keep him busy .​
His business may even look profitable,​ but it's really the​ classic shoestring operation .​
So now,​ I​ ask you,​ do you​ really want to​ pay zero taxes? People who don't pay taxes are usually in​ one of​ these five categories: Chronic Liars,​ Pond Scum,​ Stupid,​ Broke,​ or​ Just Scraping By.
The purpose of​ business is​ to​ be profitable.
The unavoidable result of​ a​ profitable business is​ taxes .​
And yes,​ you​ should do everything legally possible to​ reduce those taxes .​
But if​ you​ are going to​ be successful,​ you​ are going to​ pay some taxes.
When it​ comes to​ taxes,​ stay away from Charlie.
What Does It Take To Pay Zero Taxes What Does It Take To Pay Zero Taxes Reviewed by Henda Yesti on July 06, 2018 Rating: 5

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