"Most firms pay no income taxes -

Congress Study finds that the majority of domestic and foreign corporations in the United States avoid paying federal income taxes.

By David Goldman, CNNMoney.com staff writer

Last Updated: August 12, 2008: 4:38 PM EDT

NEW YORK (CNNMoney.com) -- Nearly two-thirds of U.S. companies and 68% of foreign corporations do not pay federal income taxes, according to a congressional report released Tuesday.

The Government Accountability Office (GAO) examined samples of corporate tax returns filed between 1998 and 2005. In that time period, an annual average of 1.3 million U.S. companies and 39,000 foreign companies doing business in the United States paid no income taxes - despite having a combined $2.5 trillion in revenue.

The study showed that 28% of foreign companies and 25% of U.S. corporations with more than $250 million in assets or $50 million in sales paid no federal income taxes in 2005. Those companies totaled a combined $372 billion in sales for the largest foreign companies and $1.1 trillion in revenue for the biggest U.S. companies.

The GAO report, which did not name any specific companies, said that some corporations reported zero income before deducting expenses while others said they had zero net income after deducting expenses. Either way, those companies reported no tax liability, the GAO said.

But many of the companies the report found had paid no tax were likely small businesses that pay other taxes. Generally, many small firms, because they do not have shareholders, are able to shift corporate income to individual income.

"Small businesses that are going to be liable for a lot of income tax are likely to use other tax forms so they only pay individual income taxes," said Eric Toder, a senior fellow at the Tax Policy Center.

The study was requested by Sens. Byron Dorgan, D-N.D, and Carl Levin, D-Mich., in an attempt to determine if corporations are abusing so-called transfer prices.

Transfer prices are charges on transactions between subsidiary companies within a larger corporate group. Companies may try to lessen their U.S. tax hit by improperly transferring income to foreign subsidiaries in countries with lower rates.

The GAO study did not attempt to determine if companies were abusing transfer prices, but it said that potential abuse of transfers could reduce the amount of taxes companies pay in the United States.

"The tax system that allows this wholesale tax avoidance is an embarrassment and unfair to hardworking Americans who pay their fair share of taxes," Dorgan said in a statement.

U.S. politicians disagree about how much income tax the government should levy on corporations. Currently the rate is 35%, but most foreign governments have set their rates below the U.S. level.

"The U.S. corporate tax rate stayed the same while foreign countries have drifted down, which increases the incentive for companies to report income in other countries," said Toder. "If the U.S. drops the rate to 30% but closes other tax loopholes, that may ultimately generate more tax revenue for the government."

First Published: August 12, 2008: 3:46 PM EDT "

Hit me up!

... and many foreign countries have personal income rates which are well above those in the US. Try Denmark (65%), Belgium (55%) or Italy (50%) as great examples.

Originally Posted by expatdude

... and many foreign countries have personal income rates which are well above those in the US. Try Denmark (65%), Belgium (55%) or Italy (50%) as great examples.

Yeah, my personal corp; the one that I run all my shit through is like $30K down for the year and I will have significant loss carry forward or some such shit, so my accountant tells me!

Nice position to be in; money in the bank, all the bills paid and a $30K loss for the year so far and three months to go!

Like Billy Connolly says, "It's fookin' magic!"

Originally Posted by Uptownbulker

Yeah, my personal corp; the one that I run all my shit through is like $30K down for the year and I will have significant loss carry forward or some such shit, so my accountant tells me!

Nice position to be in; money in the bank, all the bills paid and a $30K loss for the year so far and three months to go!

Like Billy Connolly says, "It's fookin' magic!"

I need the number to your accountant...lol that's the way to do it!!!
Thanks for the good read as well!

Thats funny, then why does all the corps complain about Obama raising taxes?

Originally Posted by MiLiTARYiV

Thats funny, then why does all the corps complain about Obama raising taxes?

cause then the avg consumer has less money

If you're not making a "profit" you're not going to pay income tax.

**Thats funny, then why does all the corps complain about Obama raising taxes?

Well, how do corps get funding for their projects? One of a few ways: Creditors, from their own pockets, or they can sell shares (stock). If they don't want to pay taxes they show a loss for the year. If they show a loss for the year, who the hell would want to own stock in a company that is consistently loosing money? Also, do you think a bank will want to loan money to a business who is loosing money? If they show no profits, how would they repay the loan? Therefore, most corporations pay that tax and are able to get more funds. Also, once a year the corporation will be audited. You do not want a qualified opinion on your report.

Not only are corps mad at Obama for that, but also the shareholders. Double taxation takes place when a company make a profit and pays the dividends to its shareholders. So, not only the company suffers, but also the middle-class shareholder.

**Info may not be 100% accurate, it is from a few years ago when I took a basic financial accounting class in high school. So, maybe I am wrong, but that would be my reasoning for companies mad about raising taxes.

Uptownbulker

HE is my friend

you can work he. just trust him

It will be interesting to see just how hard the tree shakes when the new US PREZ starts going after the top corp earners... of course, it looks like it won't be right off the bat given the overall hard economic times that much of the world finds itself in at the moment. A corp is still the way to go!

That's very interesting. I found out back when I was in law enforcement for the local sheriff's office, I found out that the 1099 manual has an ammendement that states that all non-civil, state or federal employees aren't suppose to pay income tazes at all, as it is a " WAR FUNDING " process in the U.S.

It will take your personal IRS file and mark it permanently pending, which you will no longer have to pay taxes again.

I don't remember what article it is but they don't teach it in accounting or law school but it is in there. I don't have to remember though because I write everything off long form every quarter. The government always ends up owing me a big check...heh.

Great post. Interesting stuff.

Originally Posted by Uptownbulker

"Most firms pay no income taxes -

Congress Study finds that the majority of domestic and foreign corporations in the United States avoid paying federal income taxes.

By David Goldman, CNNMoney.com staff writer

Last Updated: August 12, 2008: 4:38 PM EDT

NEW YORK (CNNMoney.com) -- Nearly two-thirds of U.S. companies and 68% of foreign corporations do not pay federal income taxes, according to a congressional report released Tuesday.

The Government Accountability Office (GAO) examined samples of corporate tax returns filed between 1998 and 2005. In that time period, an annual average of 1.3 million U.S. companies and 39,000 foreign companies doing business in the United States paid no income taxes - despite having a combined $2.5 trillion in revenue.

The study showed that 28% of foreign companies and 25% of U.S. corporations with more than $250 million in assets or $50 million in sales paid no federal income taxes in 2005. Those companies totaled a combined $372 billion in sales for the largest foreign companies and $1.1 trillion in revenue for the biggest U.S. companies.

The GAO report, which did not name any specific companies, said that some corporations reported zero income before deducting expenses while others said they had zero net income after deducting expenses. Either way, those companies reported no tax liability, the GAO said.

But many of the companies the report found had paid no tax were likely small businesses that pay other taxes. Generally, many small firms, because they do not have shareholders, are able to shift corporate income to individual income.

"Small businesses that are going to be liable for a lot of income tax are likely to use other tax forms so they only pay individual income taxes," said Eric Toder, a senior fellow at the Tax Policy Center.

The study was requested by Sens. Byron Dorgan, D-N.D, and Carl Levin, D-Mich., in an attempt to determine if corporations are abusing so-called transfer prices.

Transfer prices are charges on transactions between subsidiary companies within a larger corporate group. Companies may try to lessen their U.S. tax hit by improperly transferring income to foreign subsidiaries in countries with lower rates.

The GAO study did not attempt to determine if companies were abusing transfer prices, but it said that potential abuse of transfers could reduce the amount of taxes companies pay in the United States.

"The tax system that allows this wholesale tax avoidance is an embarrassment and unfair to hardworking Americans who pay their fair share of taxes," Dorgan said in a statement.

U.S. politicians disagree about how much income tax the government should levy on corporations. Currently the rate is 35%, but most foreign governments have set their rates below the U.S. level.

"The U.S. corporate tax rate stayed the same while foreign countries have drifted down, which increases the incentive for companies to report income in other countries," said Toder. "If the U.S. drops the rate to 30% but closes other tax loopholes, that may ultimately generate more tax revenue for the government."

First Published: August 12, 2008: 3:46 PM EDT "

Hit me up!

I know this one from memory:

IRC 3402(p): Voluntary Withholding Agreements

Any employer making the payment of wages to an employee shall deduct and withhold upon such wages a tax determined in accordances with the tables prescribed by the Secretary. And this agreement SHALL BE VALID as long as the employer and employee mutually agree upon and SHALL BE TERMINANTED by either party at any time by providing signed written notice to the other.

---Income Tax is the biggest fraud in history. Check out Aaron Ruso's Freedom to Facism. Great movie on google video.

Originally Posted by whizkids

I know this one from memory:

IRC 3402(p): Voluntary Withholding Agreements

Any employer making the payment of wages to an employee shall deduct and withhold upon such wages a tax determined in accordances with the tables prescribed by the Secretary. And this agreement SHALL BE VALID as long as the employer and employee mutually agree upon and SHALL BE TERMINANTED by either party at any time by providing signed written notice to the other.

---Income Tax is the biggest fraud in history. Check out Aaron Ruso's Freedom to Facism. Great movie on google video.

Yep; keyword being "wages".

Think about it.

"Income" was defined by the Supreme Court as "corporate net profits" sorry don't know the case name by heart. It means it has to be the same definition for a corporation as it does for an individual. Meaning, as a person you can take your profits and losses just like a corporation does.

When you put in x amount of hours a day at your job, and you're given x amount of dollars for each hour you work, that's called remuneration.

There are several different types of remuneration.

But, remuneration specifically excluded from gross income is automatically exempt from being "gross income" so it's not taxable.

I created a form one time that got my employer to stop withholding taxes out of my paycheck. I could maybe upload it here if I can find it. Anyone interested?

Originally Posted by whizkids

"Income" was defined by the Supreme Court as "corporate net profits" sorry don't know the case name by heart. It means it has to be the same definition for a corporation as it does for an individual. Meaning, as a person you can take your profits and losses just like a corporation does.

When you put in x amount of hours a day at your job, and you're given x amount of dollars for each hour you work, that's called remuneration.

There are several different types of remuneration.

But, remuneration specifically excluded from gross income is automatically exempt from being "gross income" so it's not taxable.

I created a form one time that got my employer to stop withholding taxes out of my paycheck. I could maybe upload it here if I can find it. Anyone interested?

No, it's not and you cannot stop your employer from witholding.

You have been looking at too many weirdo whackjob websites.

Originally Posted by whizkids

.....

I created a form one time that got my employer to stop withholding taxes out of my paycheck. I could maybe upload it here if I can find it. Anyone interested?

You can accomplish that just by having your employer hire you as an independent contractor and providing you with a 1099 at the end of the year instead of a W-2 form. Most employers would love to do this, however, they know that this arrangement will not pass IRS scrutiny so they wouldn't waste their time with it.

Code:

http://en.wikipedia.org/wiki/IRS_Form_990#1099
http://en.wikipedia.org/wiki/IRS_Form_990#W-2

Ever hear of the Universal Life Church? They have a form that will work also. You can setup your own church structure with a bank account and legally have your employer stop taking taxes out of your check. Give them the right form and they will do it. The point is the bank and employer's ass is covered with the IRS - your's is not.

Code:

http://www.ulc.net/

There's a lot of forms that can do a lot of things but I'd have to agree with Uptownbulker, you've been reading to many weirdo whackjob websites. Tax protester types always get screwed in the end, it's the American Way.

Don't you remember filling out your 1040 where it asks if you're exempt? I found out how to get exempt and I have an old paystub somewhere on my pc where it shows I stopped the withholding.

The IRS never bothered me. I also own a copy of the IRC code book. It's basically an encylopedia. Anyways, think what you want. 33 million Americans are legally exempt.

EDIT: I found the pic

Here's a copy of the form I sent to my payroll department.

(INSERT YOUR COMPANY NAME)
(INSERT COMPANY ADDRESS)
Attention: Payroll Department



Dear Payroll:

Please stop immediately the practice of deducting Federal/State/City taxes from my paycheck. Please accept this document as my

Certificate of Exemption from withholding in lieu of form W4 for tax year ending December 31st, 2002

The Law, Internal Revenue Code Section #3402- (n) states:
“Notwithstanding any other provision of this section, an employer shall not be required to deduct and withhold any tax under this chapter upon a payment of wages to an employee if there is in effect with respect to such payment a withholding “EXEMPTION” certificate (in such form and containing such other information as the Secretary may prescribe) furnished to the employer by the employee certifying that the employee—
(1.) Incurred no liability for income tax imposed under subtitle “A” for his preceding taxable year, and
(2.) Anticipates that he will incur no liability for income tax imposed under subtitle (A) for his current taxable year.
The Secretary shall by regulations provide for the coordination of the provisions of this subsection with the provisions of subsection (f).”

While I qualify under this law and because this law requires that I provide you with a sworn statement (under the penalty of perjury) and I am doing what the law requires of me, now would you do what the law requires of you and stop deducting from my wages federal, state, and city income taxes?

IRC #3402. Income Tax Collected At Source
(A) Requirement of withholdings
(1.) In general. Except as otherwise provided in this section, every Employer making payments of “WAGES” shall deduct and withhold upon such “WAGES” a tax determined in accordance with the tables or computational procedures prescribed by the Secretary…

I have reproduces the law, IRC Code Section 3402 above to show that every employer paying “WAGES” to an employee for services must deduct and withhold.

Wages are “Gross Income” and are taxable. Remuneration excluded from Gross Income is not taxable income pursuant to IRC Code Sections 3401 (A), (i), and Code 911.

Tax laws that apply to persons making wages (Gross Income) do not apply to me because I make “Remuneration” which is excluded from Gross Income.

Employers have been led to believe that all employees earn “Wages”. This false belief is based upon traditional myth, not upon facts as presented in the law. The truth is that most employees earn “Remuneration” excluded from GROSS INCOME. Gross Income minus deductions is taxable income.

The Supreme Court decision FEDERAL CROP INSURANCE CORP v A.A. MERRILL, 332 U.S. 380 held in that decision:

“Anyone entering into an arrangement with the government takes a risk of having accurately ascertained that he who purports to act for the government stays within the bounds of his authority, even though the agent himself may be unaware of the limitations upon his authority.” (Emphasis added)

Employers and Employees when listening to the advice from the so-called experts (IRS agents, Lawyers and Accountants) need to start comparing this advice with the facts as presented in the law and implementing regulations. Otherwise, we will, as the Supreme Court warned us, “We will be taking a RISK.”

To have a tax imposed upon me I must have taxable income. In order to have taxable income I must make Gross Income from specific sources. The two sources are:
#1. Sources from within the United States, IRC #861
#2. Sources from without the United States, IRC #862

The sources from within the United States (IRC #861) pertain to me.
There is NO CODE linking my earnings with your company to Gross Income; therefore I am not subject to pay Federal, State, or City Income Tax.

In the law (Code Section 3402 (p) ) under the heading “Voluntary Withholding Agreements” it states:
“The Secretary is authorized by regulation to provide for withholding from “Remuneration” for services performed by an employee for his employer which does not constitute wages.”

When we look at the implementing regulation attached to this statute, Title 26 CFR Section 31.3402 states:
“An employee who desires to enter into an agreement under Code Section 3402 (p) shall furnish his employer with form W4 (withholding Exemption Certificate) executed in accordance with the provisions of Code Section 3402 (f) and the regulations there under. The furnishing of such form W4 shall constitute a REQUEST for withholding.”

This Section also provides for: “An agreement under Code Section 3402 (p) shall be effective for such a period as the employer and employee MUTUALLY AGREE upon. However, either the employer or the employee MAY TERMINATE the agreement prior to the end of such period by furnishing a SIGNED WRITTEN NOTICE TO THE OTHER.”

This section makes it very clear that we the employee may volunteer to have taxes withheld from our remuneration which is excludable from Gross Income, by furnishing a W4 form signed under the penalty of perjury and presenting it to our employer. We are told this act constitutes a “request for the employer to withhold.” Without this W4 form the employer has no lawful authority to withhold from the pay of the employee.

Employers have been led to believe that it is mandatory for employees to sign and turn in a W4 form and submit to the deductions from their pay. This act also submits the employee to all the laws pertaining to the federal/state/city income tax and he is now treated like a foreigner in his own country.

Employees who find themselves caught in this trap should know there is hope. There is a Code Section, which will allow them to correct the situation. That will be the Regulation under the heading “Returns Regarding Remuneration for Service”, Title 26 CFR 1.6041-A-1:
“Any service recipient (defined as the person for whom the service is preformed) engaged in the business that pays “Remuneration” to any person for service shall make a return. Only the term “remuneration” does not include amounts paid to any person… if the service recipient (THE EMPLOYER) knows that such amounts are EXCLUDABLE FROM GROSS INCOME of the person performing the service.”

The above regulation is speaking to YOU the EMPLOYER and is talking about the W2 filing that you are required by law to file.

The above statement basically tells my employer that if he knows my remuneration is excluded from the definition of Gross Income, that he is not to include that remuneration on a W2 filing. When he knows that my remuneration was EXCLUDABLE FROM GROSS INCOME and he goes ahead and reports this as GROSS INCOME on the W2, he is telling the IRS, the State of (INSERT: name of your state), and the City of (INSERT: name of city where you work), that I had taxable income. When the fact is that I had remuneration excludable from taxable Gross Income.

This Section goes on to say that the employer is considered to know the facts if he is given a written statement by the employee signed under the penalty of perjury. This section did NOT instruct the employee (me) to take an army of Accountants and Lawyers to the employer’s office to help prove this case. The code simply instructed me to write a statement, sign it under the penalty of perjury, and present it to the employer in lieu of the W4 form.

This is my formal notice to you, my employer. I am submitting this statement sworn by me under the penalty of perjury that my remuneration is excluded from Gross Income and is not wages subject to withholding tax.

In view of the fact that I had no Wages, I also had no Gross Income to report on a W2 to the Federal government. This also means that I had no Gross Income to report to the State of (INSERT: name of your state) or the City of (INSERT: your city name). Therefore, you are to stop immediately the practice of deducting the (INSERT: State name) Withholdings and the City of (INSERT: name of city) Withholdings. The Ohio Laws pertaining to the Ohio Income Tax are the same laws as in the Internal Revenue Code and their Regulations. So since I have no legal liability for the Federal Income tax, I also have no legal liability to pay the Ohio or City of ((insert city)) tax either.

I am doing what the law requires of me, now will you start doing what the law requires of you and stop the illegal practice of sending a portion of my Remuneration, (excluded from Gross Income) off to these three government agencies.

Thank you for your cooperation in this matter, and please do not hesitate to contact me directly should you have any questions on this issue.

(INSERT YOUR NAME) SSN: ***-**-****
“Under the penalty of perjury I attest that everything contained herein is accurate and legal to the best of my belief.”



Signature:_________________________________DATE:__ ______________

“Without Prejudice” to any of my unalienable rights.



(NOTE TO TEA PARTY PEOPLE: You will want to sign this form IN FRONT OF A NOTARY PUBLIC and have it NOTARIZED. Also, if you want to see a picture of my paystub which I have scanned, I will glady email it to you to show you that my company honored this form. Glad to be part of the greatest mission in America)

Alot of code and a lot more words...but a good read none the less, this is what I take from all of it: On the W-4 form you are declaring that you had no taxable income and were due 100% refunds for the previous year as well as the current year. So far you've done what you need to do and the employer's ass is covered because you've given them what they need to satisfy the IRS.


Related Sources, for the hard core:

Code:

http://www.irs.gov/pub/irs-pdf/fw4.pdf
http://www.supremelaw.org/rsrc/cert3402.htm

That leaves you having to prove to the IRS that you indeed were not liable for any taxes on gross income and were due 100% refunds for 2 years because your compensation was classified (only by you at this point) as remuneration. You call your income remuneration and the IRS calls it wages. Not the best position to be in, but it may fly.

SEC. 3402(e) Included And Excluded Wages
If the remuneration paid by an employer to an employee for services performed during one-half or more of any payroll period of not more than 31 consecutive days constitutes wages, all the remuneration paid by such employer to such employee for such period shall be deemed to be wages; but if the remuneration paid by an employer to an employee for services performed during more than one-half of any such payroll period does not constitute wages, then none of the remuneration paid by such employer to such employee for such period shall be deemed to be wages.

861(a)(3) Personal services.--Compensation for labor or personal services performed in the United States; except that compensation for labor or services performed in the United States shall not be deemed to be income from sources within the United States if--
....
....
....
861(a)(3)(B) such compensation does not exceed $3,000 in the aggregate.

At this point there's still alot of if's, now the IRS and the employer are the ones who have to ultimately decide if you've been paid remuneration or wages. If I was the employer I wouldn't want the aggravation you bring me and would find a way to get rid of you. But, there are still employers who would do it. The clearest part seems to be if you earned under $3000.00 you're free and clear - not worth being on IRS's radar. Anything more than that (or unless you meet some other unlikely qualifications) and it seems like you're still on the IRS hook if they want to pursue it.

U.S. 381, 390 , 518. Whatever the form in which the Government functions, anyone entering into an arrangement with the Government takes the risk of having accurately ascertained that he who purports to act for the Government stays within the bounds of his authority.

You are correct about the supreme court decision it tells you to do your own due diligence and ignorance (of the law) is no excuse, but it doesn't support your deciding what is remuneration and what is not. I would be interested in finding out where you got the 33 million legally exempt (from this method) statistic though. And on that happy note I feel the urge to put out a high priced eBook on the subject.

Now you've got my attention. This is exactly what I need. I sure hope you know what your talking about. Then again, there is the law aspect to taxes and then there is the enforcement side. Those two don't always agree, but the enforcement side is the one that has the hammer.

Unfortunately the enforcement side usually comes first in the forms of liens and forced sales of your possessions if they want to be pricks about it. The law aspect would finally be decided years down the road with many extra penalties and fees in the deal if you lose.

That's the beauty of our tax laws you'll be able find 'professionals' on each side of the issue to tell you whatever you want to hear, they'll both take your money. And the IRS does not even stand by what their service reps will tell you! Whether for or against any of the methods don't forget where all this 'free' advice is coming from...this is the internet after all!

Be sure to check with your 'professional'.

I'm not a tax professional. I'm just a normal person who looked into how to get exempt. And you made a good point in ref. to only "me" being the one who decided it was remuneration specifically excluded from gross income. Yet, at the same time, my employer honored my form and request and never even said anything to me about the form.

I believe it was reviewed by their legal department, as this was a pretty large corporation I worked for at the time with several thousand employees.

Bottom line is that the Income Tax is one of the greatest frauds in history. The 33 million people exempt from federal withholding is just a number I have always read and heard about when I see stats on people who don't pay.

Of course, when you say "speak to a tax professional" it should be noted that an accountant's primary job is to enforce the code.

Now, if you read your tax manuals and forms it uses the slick word "voluntary compliance".

When a person submits a tax return they are in effect volunteering information to the government. Yet, if the IRS doesn't believe your return is accurate then they can take action against you by "auditing" you and your return. In effect, by filling out a 1040 you're agreeing to sacrifice your 5th amendment right to not incriminate yourself.

Because, if you get audited and the IRS finds all this extra taxable income they can charge you penalties, interest, seize your bank accounts, put "notices of levy" (which is different than a court ordered levy but a lot of banks don't realize this) and just take everything they can get their hands on.

Irwin Schiff the publisher of the now banned (to sell) book called The Federal Mafia makes a lot of good points in his book that's available on www.paynoincometax.com but it should be noted that he is in jail now after the court blatently violated all his rights. He was, at one time, one of the major voices against the legality of the income tax.

Earlier in this thread, someone stated that the federal income tax was originally created after WW2 as a "war tax" and that's correct. Yet, in the book "A Creature At Jekyll Island" you discover it was international bankers who created the Fed and then the income tax. The amendment was never properly ratified either.

It goes back to "voluntary compliance". Not mandatory compliance, which would imply you had to "comply", but "voluntary".

It's like when you sign your driver's license. A lot of people don't know this either, but your signature on your driver's license is you signing a "contract" agreeing to be held liable for all the thousands of rules and regulations in your State's Bureau of Motor Vehicle laws.

This gives the officer the authority to ticket you even if you weren't aware of what law you broke while on the road.

Yet again, the Supreme Court ruled that the 'right to travel' is part of persuing life, liberty, and the pursuit of happiness and shall not be enfringed upon. They can only tax a "priveledge" not a "right".

If you have a right to drive, it cannot be taxed by any means, whether it's the hidden tax of license plates, sticker renewals, etc.

There is a lot that the average person isn't aware of. If you want to know the truth, read the Federal Mafia by Irwin Schiff and his other books. Then go to givemeliberty.org and read all their materials. I'm actually a member of givemeliberty.org and they have a petition you can sign to help get our government to answer the main question "where's the law that requires me to pay an income tax".

There really is no law and judges and attorney's know this if you ask them.

Voluntary Compliance.

Voluntary Compliance.

How "voluntary" is Voluntary Compliance if the party wanting you to comply has all the guns and is all too happy to use them? I am guessing it is about as voluntary as paying the mob protection money when they pay you a visit and "ask" you for it.

hehe, I'm sure there're plenty of things they can write-off just like there are plenty of things they get hit with that a sole proprietorship or individually owned business. EIN or No, you have taxes...

Dudes

If anyone knows a good UK accountant that can sort out my online finances i would be much appreciated.

Every accountant i speak to isnt interested in reducing my income tax, they just spout the old shit about you have to pay tax on your profits etc. and that you must have receipts for any costings.

I havent paid tax on the last few years of income and my accountant that has all my records has dissappeared off the face of the earth.

Anyone that can help plz PM me

Originally Posted by Uptownbulker

Yeah, my personal corp; the one that I run all my shit through is like $30K down for the year and I will have significant loss carry forward or some such shit, so my accountant tells me!

Nice position to be in; money in the bank, all the bills paid and a $30K loss for the year so far and three months to go!

Like Billy Connolly says, "It's fookin' magic!"

What country we should incorporate in?

Originally Posted by teguh123

What country we should incorporate in?

USA, of course!

Originally Posted by l0cke

hehe, I'm sure there're plenty of things they can write-off just like there are plenty of things they get hit with that a sole proprietorship or individually owned business. EIN or No, you have taxes...

You only pay taxes on PROFIT and if your corp shows no PROFIT, you pay no tax.

Why not arrange to get paid in US $20 Gold Eagle coins. The IRS has issued a Letter Ruling that the person receiving the those $20 coins has an income of $20, rather than the current gold value of about $854 per ounce today (Jan 10, 2008). However when you sell that coin for more than the $20 face value then you pay tax on the appreciation. Just another way to defer taxes, but it is completely legal. I don't have the IRS Letter Ruling but it is out there for those interested enough to dig it out. Easy enough to set up. Whoever owes you money buys the coins at the current market price and you accept them as full payment discounted to their face value. Getting paid in gold will also eliminate Social Security and many other taxes since you only report the $20 face value as current income. Then when you spend the coins you have appreciation that can under some circumstances be taxed, but probably at a different rate. Worth checking into if you want to fly beneath the radar on solid ground.

Originally Posted by Uptownbulker

USA, of course!

Uptown,

No disrespect, but given the attitude of the US government (p@triot act, EXTREMELY broad definition of the term m@ney l@undering, highest per capita incarceration rate in the world, etc, etc, etc, etc, etc) why on earth would you want to incorporate in the USA if you are NOT a US citizen or resident or greencard holder and don't have a physical business or physical assets located in the US?

I am sure that IF you really need to incorporate in the US you are a good person to deal with, but why bother or take ANY risks with the US government if you don't fall in one of the three groups above??

Regards,


Freddie

I think the same applies to UK limited (Ltd) companies in case you are interested in pulling something like this off. If you are a Ltd co. you can pay out directors a set amount yearly before paying taxes, and also you can do lots of good things with moving money around to limit what you have to pay in the long run and still keep in good stead with the banks.

THERE IS NO FUCKING LAW THAT WOULD TELL AN AVERAGE AMERICAN TO PAY THE FEDERAL INCOME TAX! It is the biggest scam a government has ever made in history!
Try and find a law that says you have to pay tax. there is none.

and tell me then how did the government get their money and where from did they get it in the 17th century? there was no tax system then and everything was smooth.

Originally Posted by sippick

Try and find a law that says you have to pay tax. there is none.

http://www.law.cornell.edu/uscode/26/1.html

Two seconds on Google, which you obviously never tried. You're welcome.

Now I know where you're coming from... you watched the Aaron Russo movie, and it said there's no law, so you just repeated that without actually checking. Because you wanted it to be true so badly.

Sorry dude, reality doesn't work that way.

"Waaaah... Mack doesn't know what he's talking about. I saw some former IRS lady in the movie and she said there's no law, so she must be right!"

Oh... you mean this lady?

Don't repeat bullshit fairy tales like "there is no law" without checking into it. God forbid you convince someone else to buy into that nonsense.

Failing to file is a retarded way of dealing with Title 26, and it'll get you convicted, just like Sherry Jackson.

Getting a C corp (especially with a pro like Uptown) is a smart way of dealing with it. It'll save you lots of money and hassle.

Originally Posted by sippick

THERE IS NO FUCKING LAW THAT WOULD TELL AN AVERAGE AMERICAN TO PAY THE FEDERAL INCOME TAX! It is the biggest scam a government has ever made in history!
Try and find a law that says you have to pay tax. there is none.

.....

Tell you what, why don't you try out your theory and let us know how it goes?

Like it or not, law or not, that's the way it is. The best you can do is to use the IRS code to find any and every deduction you can possibly take. Done properly you should be able to reduce your taxes considerably and if you're lucky (or good) you may even be able to zero out your taxes and get some previous years taxes refunded.

Follow the paragraph above and you'll get through the next 50-60 years as a free man or woman.



Follow your method and you'll learn the hard way.