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Why Some People Pay Less Income Tax Than Others

Let WealthBuilder use the Secrets the IRS Doesn’t Want You to Know About and Get Back YOUR Money!

I have a confession to make.

I probably pay less tax than the average person who earns the same amount of income as me.

Will I get in trouble? Will I be audited by the feared IRS? Will they take my house away?

I seriously doubt it.

Why? Because I’ve done only what the law REQUIRES me to do. File tax returns and pay the amount shown.  And, as a proud American, yes, I DO pay taxes each year. But as a student of tax law, I know how to arrange my affairs such that the IRS gets the LEAST TAX they can. I KEEP MORE of what I earn, all one-hundred percent legally.

I do not have any questionable tax shelters.  I do not believe the nonsense argument that the Constitution doesn’t authorize taxation of the American people. And I do not leave income sources off my returns.

And if the IRS does audit me…so what? An audit is only verifying the entries I put down on my return. If I didn’t have proof, I didn’t put it on my return in the first place.

    

So how do I know that YOU are paying too much income tax?

If you earned more than $50,000 in any of the last 3 years and either had a CPA prepare your return, prepared it yourself (even using one of the popular software programs on the market, or had your return done by the corner tax prep place, there’s a two out of three chance that you overpaid your taxes! 1

How can this be? You paid good money to get what you thought was good help!

It turns out that there are a few key factors that may have caused you to overpay your taxes. And if you found out that you were one of the millions of Americans that did overpay, wouldn’t you want your money back?

The most common reasons that cause you and your accountant to overpay are:

The tax code is inherently complex;

The person that actually prepared your tax return is probably not an expert in taxes. (note: CPA is not a professional designation for a tax expert!);

Fear of the IRS;

Lack of forward-looking tax-savings plans.

If you used a commercial tax software package to do it yourself, you may have been subject to these errors:

Data entry errors;

Confusing instructions or misunderstanding the law that cause you to make improper choices;

Fear of the warning messages the software generates in review mode;

Lack of any forward-looking tax-savings plans.

And these errors are not likely to be found using the “error-checking” features of any personal or professional-level software program.

 Computers are dumb. They can only find certain types of errors, such as mathematical inconsistencies and incomplete forms. The computer has no way of knowing if you bought a stock for $10 or $100 a share. Or if neither is the right number in the first place.

Here’s the most eye-opening part: these errors are not insignificant.

On average, when WealthBuilder reviews a new client’s tax return, the tax specialists find over $3,000 per client  in savings that can be refunded by the government2. And oftentimes, this number would have been much higher had the client had the right advice before the end of the tax year!

Let’s take a closer look at how each of the common causes of errors affects you.

First, there are over 30,000 pages in the tax code currently in effect. And the laws change daily. In the past two years alone, hundreds of lines of tax law were inserted and many of them affect individual taxpayers. What you may not know is that several of the new laws were retroactive—meaning they have an impact on your earlier tax returns! Did you go back and ask your accountant about rules that affected earlier filings? Almost nobody does!

Second, most people who hire a CPA to prepare their tax returns simply assume that the CPA is a tax expert. Unfortunately, for more than 99.5% of CPAs3, this just isn’t the case! A Certified Public Accountant has his or her designation conferred by a state association attesting to the knowledge in general accounting and the ethical professionalism of the licensee.  In fact, only 10% of the standardized CPA exam even covers tax, and most of that is geared towards corporate, not individual, taxes.

Most taxpayers have never heard of the Enrolled Agent designation. That’s too bad, because Enrolled Agents (EA’s) are licensed by the US Government to represent taxpayers nationwide in matters of taxation. In fact, EA’s are often the most trusted tax advisors because they specialize in only tax and they’ve had to prove their competence to the IRS. 4

In larger accounting firms, the experienced CPAs do not prepare 1040s. That job is left to the lesser-experienced associates or even farmed out to contract workers.  In smaller CPA firms, the person you rely on as your advisor is often dealing with a multitude of issues, such as overall accounting strategy, bookkeeping, and corporate tax issues and audits. With all that a typical CPA is doing, and with an average workload of 400 clients, this leaves less than 30 minutes per year per client to handle a personal tax return.

Now keep in mind that we’re not suggesting you should just pack up and leave the relationship with your accountant today. Your relationship with your tax preparer should be based on one important thing: How well does he keep YOUR money in YOUR pocket--legally.

And here’s the other thing about your current accountant…you think he’s good….but HOW DO YOU KNOW it? Have you ever put him to the test?

Most accountants can fill in a tax form based upon the papers you drop off. But is that enough? When was the last time your tax preparer just asked you a question about something you DIDN’T give to him on a piece of paper. I mean, did he notice that you had no cleaning expenses for your rental property? Did he ask why there were no college tuition expenses when he knows your eldest child is 20 years old and had no income? Sometimes, it’s what’s not there that takes a keen and experienced eye to see.

What If You Could… Hire An Expert Tax Preparer to Review Your Tax Returns and Pay Nothing Unless He Can Save You Money?

You can now get a second-opinion review for FREE! And if WealthBuilder doesn’t find you any savings…you’ll know 2 things! First, you’re getting good help on your taxes (or you’re doing a good job yourself!), and second, you won’t have to pay a dime for us to give you the peace of mind! Read on for how to get this FREE Review!

 Get Started NOW!  

 

 

 

Text Box: “My brother-in-law has been doing our taxes for the past 14 years. After we had WealthBuilder review the last 3 returns, he’s still my brother-in-law. But he’s not my tax preparer anymore.”
Mrs. M. Streng, Self-employed, Conroe, TX

 

The third common cause of significantly overpaying the government is your fear of the IRS.

 Too many people think the IRS will come audit them and then…throw them in jail! Or worse!

 Fact is: Nothing could be further from the truth!

 Even with the IRS’ recently announced additional audits, the chance of audit remains about 1 in 100. And the most important thing to remember is that even if you are one of the unfortunate selected ones, if your tax deductions are legitimate, there’s NOTHING the IRS can do to you.

 (By the way, if you are already having a “run-in” with the IRS, call us to talk to a tax-problem specialist right away. You’d be surprised at how effectively we can deal with the IRS to ease your pain.)

Text Box: Real case: Last week, I just completed an audit for a client where we claimed more than an $8,000 refund. The claim included 35,000 miles for business travel that was not reimbursed by his employer. We also added to his return almost $6,900 in meals expenses (but had no receipts). Our client carefully kept a list of all of the sales visits he made and kept all the business cards of his prospects. The IRS agent was amazed to find that with the minimal documentation that we had proving the dates and business purpose of each meeting, receipts for meals were not necessary, since the meals expenses were less than $75 each. He ended up having to allow 100% of the refund claim. The client did not even need to attend the meeting. --RK
 
 

 

 

 

 

 

 

Discover the “Secret Weapon” Used For Over 1000+ Satisfied Customers Nationwide!

Get A Second-Opinion Tax Review At NO COST and WITHOUT RISK!

WealthBuilder’s proprietary 88-point checklist ensures that we find the mistakes that cost you money! It’s sometimes hard to find mistakes when the documents are right in front of you. But it’s even harder to find mistakes for things that aren’t even there! That’s why our checklist makes sure that we ask the questions that uncover hidden deductions for you!

 

 

 

 

 

 

Text Box: “Thanks for getting us back over $2,600 based on correcting the error about the cancellation of debt. The IRS said it was taxable income, but you proved otherwise.”
Mr. D. Jones, Insurance Agent, Denver, CO
Text Box: “I thought there might be some errors by my previous tax preparer. I just didn’t think it would be over $5,000 worth!” (Total refunds over $8,412)
Mr. L. Eason, Sheriff of New York City, NY

 

 

Take advantage of this zero-risk Review.

The REVIEW IS FREE! And if we don’t find any savings for you, THERE IS ABSOLUTELY NO COST!  WE MEAN IT!

 

 

 

 

Text Box: “I truly appreciate the professional way your firm handled the review of my wife’s and my tax returns. It’s too bad you weren’t able to find us any savings, but your honesty should be noted in this day and age.”
Honorable M. Pope, State Judge, North Carolina

 Get Started NOW!

 

 

Click here to find out about the 7 Most Expensive Errors people make on their Tax Returns.

 

 

Click Here to get a FREE Information Kit mailed to Your Home

  Click here to watch a 5-minute video on commonly asked questions about Tax Recovery.

 

--OR, if you are ready to find out how much YOU overpaid,

Remember, your case will be handled with the UTMOST in privacy and professionalism.

Take advantage right now and get these two incredible bonuses!

BONUS #1

If you submit your tax returns for review within the NEXT 10 DAYS ONLY, Get a $25 GIFT CERTIFICATE to a Well-Known National Restaurant in your area for EACH Year’s tax return you send us! YUM! This BONUS is not dependent on the result of your tax review. We will give you these certificates regardless of whether or not we can save you money on your tax returns.

BONUS #2

If you submit your tax returns for review before January 30, we will give you 50% OFF your regular tax return preparation fee for the upcoming year—regardless of any savings we find on prior returns. You do not have to send your materials for current-year preparation at this time for this offer to apply. (Applies to Form 1040 and corresponding schedules, only. No other discounts or coupons apply. Offer expires August 1.) 

Best Regards,

  

 Randall Klein, MBA, EA                                  

President

p.s. There is a LIMITED amount of time we can go back to file for refunds. Once the regular tax season is underway (January through April), we get VERY busy and you may lose out on one or more years of refunds.

p.p.s. If you like our service (and we know you will), we’ll DOUBLE the GIFT CERTIFICATE BONUS if you tell a friend about how we took care of you!

With millions of dollars recovered over the past 2 years for our clients, what are you waiting for? It costs you nothing to find out what you’ve been missing…so call today!

NOTES:

(1) Over the period June 1, 2004 to December 31, 2005, we found savings opportunities for approximately 66% of clients. Not all cases resulted in immediate refunds as some savings opportunities were forward-looking.

(2) Of the cases that resulted in refunds, the average of total money received by our clients was over $3,200 before fees. This result may not be typical or apply in your case.

WealthBuilder does not guarantee any refund amount or delivery time for any refund.

(3) Source: American Institute for Certified Public Accountants (AICPA)

(4) Visit www.naea.org for more information about Enrolled Agents

 

Text Box:  
“Thanks, WealthBuilder, for getting over $22,000 in refunds from the IRS and South Carolina. After my original preparer told me I could only deduct my $100,000 investment (in a payphone leasing scheme) as a capital loss—subject to the $3,000 per year limit—your reviewer found the appropriate section of the tax code to allow the full deduction of the loss. While I know I can’t recover the full $100,000, at least I got some satisfaction in getting a portion of my investment back.”
-- V.R. Williams, Retired, South Carolina
 

 

 

 

 

 

 


"Over and over again Courts have said there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich and poor, and all do right, for nobody owes any public duty to pay more than the law demands. Taxes are enforced by exactions, not voluntary contributions. To demand more in the name of morals is mere cant."

Honorable Learned Hand, US Appeals Court Justice

                                                                  

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(c) 2006, WealthBuilder Tax