A company called the Tax People claims that it has devised a way to help members receive the lowest tax payment possible. The key is in setting up a home business focused on selling the tax relief system to others. Because of the way the business is set up, the owner can then write off nearly any activity in which he participates. From buying groceries to attending church to taking a vacation, all these activities can be written off. The logic behind taking the cost of all these activities as a tax deduction is that the individual is recruiting new “tax relief” customers anywhere he goes. Voila! Life is a business expense.
According to an article that appeared in Wednesday's New York Times, Tax People members theorize that the IRS may not have an opportunity to examine the tax returns of members due to recent budget cuts for auditing tax returns. Some tax experts estimate that with the type of tax returns the Tax People are filing, there would be a one in 77 chance of being audited. However, tax experts have warned that if members of the Tax People do get audited, chances of surviving the audit without change to the tax return are slight due to the fact that Tax People are ignoring complex tax rules.
The Tax People may think they have found a foolproof way of paying the lowest taxes possible, but there’s a catch. Members have to pay a $300 fee to learn how to work the system and then pay a continual $100 monthly fee. In essence, the program is somewhat similar to a pyramid scheme, which funnels money up to the top sellers. The Tax People have a tax dream team that promises to represent you if you get called in for an audit. However, if you stop paying the monthly fee and get audited your access to representation no longer exists.
Some people have complained that the Tax People’s web site offers false promises of large tax savings when actually the company only promises to provide ideas for tax deductions. The discrepancy is a huge difference. And some members who have decided to pull away from the grasp of the Tax People have had difficulty in ceasing the $100 monthly charge that shows up on credit cards.
It would appear that, contrary to the advertising campaign of the Tax People, paying taxes is still right up there with death as something you can count on.