Asset Protection Planning
is proactive legal action that protects your assets from threats such as creditors, divorce, lawsuits and judgments. Call now to let our attorneys help you.
There are a number of scams of which consumers should be aware. These can land you in trouble with the IRS, leading to penalties, fines and/or jail time.
Asset protection planning needs to be conducted with experienced and qualified professionals who know the law and conduct planning in accordance with all legal compliance requirements. When learning how to protect your assets, you want an experienced professional to guide you properly and legally.
Avoid any planners that claim to be able to reduce or eliminate tax liability. Paying taxes is the responsibility of each individual, if taxable income is not reported to the IRS, it is fraud. If at any time your asset protection plan involves underreporting or no reporting to your government, you can bet that your plan could land you in jeopardy.
We only recommend legal measures that can help you safeguard your wealth. If at any time your planner informs you that you can avoid tax liability because “the government will never know,” GET UP AND LEAVE. IMMEDIATELY! Below are some common scams that have riddled the industry and left many people in serious legal jeopardy.
Some promoters are touting the “Corporation Sole” as a method of tax elimination and asset protection. However, the true reason for a corporation sole is to help religious organizations. They can operate with very few formalities that are often needed by business corporations. There are few, if any, tax benefits for the layman. Moreover, there is some lawsuit protection of the corporation is sued. But there is little protection, if any, when the people who control the corporation are sued.
Here is the truth about the corporation sole:
Also called “Common Law Trust” or “Constitutional Trust”
Wesley Snipes fell for it. What else needs said? We all know what happened to him. The “Pure Trust” is the most common asset protection scam. In recent times, IRS has undertaken a national cooperative effort to address these fraudulent trust schemes.
For more details about the IRS policy regarding fraudulent trusts, read IRS Public Announcement Notice 97-24 which warns taxpayers to avoid fraudulent trust schemes that advertise bogus tax benefits. If it sounds too good to be true; it probably is.
A trust is a legal form of ownership that can separate responsibility and control of assets from the benefits of ownership. Trusts are used in such matters as estate planning; to facilitate the genuine charitable transfer of assets. Trusts are also used to hold assets for minors and those unable to govern their own financial affairs, such as mentally incapacitated elderly people. All trusts must comply with the tax laws as set forth by the Congress in the Internal Revenue Code, Sections 641-683. Violations of the Internal Revenue Code may result in civil penalties and/or criminal prosecution.
Civil sanctions can include a very harsh fraud penalty up to 75% of the underpayment of tax attributable to the fraud in addition to the taxes owed. Criminal convictions may result in stiff fines up to $250,000 and/or up to five years in prison for each offense. All taxpayers are responsible for payment of their own taxes as set forth by Congress regardless of who actually prepares their return. Trusts established to hide the true recipient of the income of those from whom taxes are legally due or to disguise the substance of financial transactions are considered Fraudulent Trusts.
False claims concerning same trusts can include the following:
Taxpayers must take responsibility for their own actions. Should a taxpayer choose to participate in a fraudulent trust scheme, the taxpayer will not be shielded from potential civil and criminal sanctions and any asset protection is disregarded.
Don’t be misled by the word “trust.” Just because the name “trust” is associated with financial arrangements does not make it a legitimate trust. The following arrangements have been used to promote fraudulent trust schemes:
This scam is often structured as a pyramid scheme where potential asset protection consultants pay $10,000 to go to a weekend class and become a “certified asset protection consultant.” This certification is not worth the paper it is written on because it is not a true legal professional designation.
This program is a fraud for two reasons:
[Home] [1 What Is] [2 Why] [3 Bulletproof] [4 Peace] [5 Strategy] [6 Choose]
[7 Considerations] [8 Tools] [9 Shield] [10 Position] [11 Maximize]
[12 Privacy] [13 Optimize] [14 Separate] [15 Prevention] [16 Scams]
[17 Monitoring] [18 Pitfalls] [19 Private] [20 Tips]