Some Taxpayers Make Their Own Tax Cuts

Charles Lewis, director of watchdog group Center for Public Integrity, has written a book in which the tax-dodging secrets of the rich and famous are revealed. According to Mr. Lewis, there are thousands of wealthy Americans who, dissatisfied with the current tax laws, have taken matters into their own hands.

In addition, it appears that many corporations make use of tax manipulation tactics to cut their tax assessments down to a miniscule size.

These creative citizens have provided themselves with tax cuts that would leave the proposed tax cut of the Bush administration in the dust. Mr. Lewis and co-author Bill Allison estimate that a bit of creative finagling with the tax laws has resulted in a $2 trillion tax cut - far in excess of the President's $1.6 billion proposal.

Messrs. Lewis and Allison conclude that Congress will need to close loopholes and the IRS will need to increase enforcement efforts before these avoidance techniques can be stopped.

You may like these other stories...

Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the Oso, Wash., mudslide. The loss of human life was tragic, but...
Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...
IRS chief: New rule on the way for tax-exempt groupsIRS Commissioner John Koskinen told the USA Today on Monday that the agency will likely rewrite a proposed rule regulating the political activities of nonprofit groups to...

Upcoming CPE Webinars

Apr 17
In this exciting presentation Excel expert David H. Ringstrom, CPA shares tricks that you can use with pivot tables every day. Remember, either you work Excel, or it works you!
Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.