Avoiding Govnerment Tax????

It's not really that dramatic, I mean listen this is what happens bro.

When you use a payment processor like paypal, the reason they ask you for your personal information is because they have to file taxes every year like everyone else, and they have to file taxes on all the money they paid out to a individual or company once they file taxes and tells the IRS hey we paid such and such to so and so for whatever year.
the IRS will then go back to your taxes to make sure the numbers some what add up to what your reporting minus your deductions and expenses etc.

You can't win, paypal will always report how much you was paid out why do u think they have a 1099 form and tax forms for individual accounts, its for tax prep reasons. paypal can't have some random company making 100k-millions and they pay it out and not report it.
 
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There are so many factors that go into tax liability that its just about to impossible to say one thing always works.

As an example, in many countries, you don't pay income taxes on income of you are a foreigner. And in most countries you may be a citizen of, you don't pay income taxes on income from foreign sources.

Line those two up properly and you pay no income tax.

Sadly, the US is not one of those countries of you make over $96k.

Look up the double Irish as an example.
 
The IRS is going to get me? Really? How, they can track how much money goes into MY PP account?

Unless paypal specifically tells them, there is no way, not even if they do detective work that they could solidly prove that I am making excess money and not paying tax.

Ah to be so naive and know so much about tax laws. Let me help as once again I have too much experience in this field and have been in the IRS treadmill for more than 10 years and probably have 20 more years to go.

Firstly, PayPal will file with the IRS if you make serious money. It's the law and every year I get my PayPal form showing they provided the IRS with all the deposit information into my PayPal account.

Secondly, not reporting revenue and signing your tax forms under penalty of perjury to be true and accurate is a criminal offense if they can prove you purposely evaded taxes. No fear though, they usually give you a few years to correctly hang yourself.

Thirdly, there are two distinct divisions of the IRS; the CID (criminal investigation division) and the Collection department. Understand the CID doesn't answer to any law in this Country. They can seize assets without a warrant. They can toss your ass in the jail and go see the Judge when they get time. They can take all you own without a Court order. They are above the law in this Country. When they come knocking (pray they never do; I had 6 show up without a single notice, it's not pretty) their only intent is criminal investigations. They don't give a rat's ass if you have their payment in full sitting in the til, they want to put you in jail for breaking the law - end of story. They won't accept a payment and frankly probably don't even have a figure in mind; they want your ass in jail. They get promotions and bonuses by taking heads. They are not to be played and believe me when I say they are serious. If you run into one of these guys or 6 of them; shut your mouth. The recorder is running and anything you can say can be used.

Now if you get the CID on your ass, you'll need the best Attorney your money can buy if you want to stay out of jail. Mine cost me $450 an hour with a $10,000 retainer. In a year he cost me $45,000 before the CID tossed their case and transferred my account to the collection division. I might not be typing from the luxury of my office today if I didn't have the money. You want to play with the IRS you better have some liquid assets.

Now if you get the luxury of avoiding the CID and just have to deal with the revenuers then expect a full audit in which case if you don't have meticulous receipts for everything then whatever receipt you're missing the expense is tossed. Can't remember what you purchased online? Tossed, now that expense is YOUR income. Can't remember what you paid cash for? No problem, that expense is now your INCOME. I had a quarter million in credit card bills for trade shows I did in two years. Charges for airlines and hotels from about every City in this Country on those credit card bills. BUT, because I didn't keep all the individual receipts for those charges, the IRS kindly moved those from the expense column to my income column. I argued how in the hell do you think I did shows in those towns without staying in hotels and flying? Not their problem; no receipt, no deduction.

Now you think after you've been caught evading taxes can reason with the IRS? You're a fool. This is a radar you never want to come up on. You never want an IRS agent to remember your name, your business name or anything about you. Once you come up on radar it's about impossible to disappear.

Everyone has good advice - pay your taxes. Now if you want a reason why, I hope I gave you something to consider. My audit was brought on by an employee that thought she'd make some extra money not putting payroll tax deposits in the Bank. I didn't get a collection notice, not a single warning that payroll tax deposits were being siphoned off until Sept 2004 when 6 CID Agents walked in my business front door and wanted to "talk" to me about a "possible" criminal investigation.

Do as you wish but understand you're playing with fire.
 
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Paypal, then to an OFFSHORE BANK!

IMHO, if you don't mind, I strongly suggest you not seek legal and accounting advice from anyone except for a lawyer and accountant.
And if you do otherwise, just take everything with a grain of salt. On that note.

I strongly encourage you to seek as much tax avoidance as you can legally!

I'll drop a small bit of insight though. I can assure you PP and the IRS maintains strong bonds. I just received my 2012 1099K from PP, which they so generously CC the IRS with.

Unless you have an elaborate plan backed by professionals, which is very costly, it would not be very wise to try to pull the wool over the eyes of such a powerful and corrupt organization.

However I do feel you are correct in a way. What you want to seek is Tax Avoidance, and not Tax Evasion! These are two totally different things which will propel you in different directions.
Code:
http://en.wikipedia.org/wiki/Tax_avoidance
http://en.wikipedia.org/wiki/Tax_evasion

Being you mention the "IRS", I assume you are in the US. Being in the US (or having income controlled by) it's fully understandable why you have issues with paying income taxes when all tax payers and people of the world see what the US government does with the money earned by its citizens. Not a pretty sight.

Btw, the majority of all income taxes collected by the US IRS goes to pay back interest to a privately owned bank, the Federal Reserve Bank. It would of course be more palatable if these income taxes collected went to help the citizens, children, education, reduction of violence, etc. however that is simply not the case.

Good Luck with your Biz, I hope you reach your dreams! :D
 
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If you can see your money, then so can the government.

With that in mind, the only way to avoid any litigious liability is to set yourself up so the government does not have a legitimate claim on that money. In 99% of cases, it means moving to a jurisdiction with a lower tax rate. A certain French actor just 'moved' to Russia as an example of this. The other 1% use tax minimization to lower their taxable income. I think a certain 2012 presidential candidate used one of these through his church to avoid taxes if I remember correctly (and I could be wrong ... I would have to check the last 5 years of tax returns he submitted for public scrutiny ... oh, wait ...), but alas, that loophole is closed for the common rabble like yourself.

Want to move to a government jurisdiction with little government influence? I hear Somalia is nice this time of year.

Tax if your ticket to a civilized society. Want to pay less tax? Find a less civilized society.
 
2 months later you receive a call from the tax dude

The tax dude from what country? How did the tax dude connect the money making dude to the tax dude's country? Does the American tax dude get to see everyone in PayPals "Making Shitloads of Money" category, so he can pick-out which of those dudes are American dudes?

What if the American dude's ecommerce site is hosted in Left Mongolia? Does the Left Mongolian tax dude call the American dude on the phone and say "Hay dude, you owe us like 5,872 buffalo hooves, and 14 clampchiks of Yak vomit (Left Mongolian currency)."

Can the American dude tell the Left Mongolian dude to make love to a lonely Yak in heat, in her 3rd day of estrus? And if he does, can the Left Mongolian tax dude call the American tax dude in order to extradite him to Left Mongolia?

All of this tax stuff might seem real simple to a master of the skateboarding arts, such as yourself, but some of us grew up on underprivileged backgrounds and didn't even have pot to smoke when were were children, so you have to like be patient with us dude. We're basically handicapped, and you are like kicking crippled people to the curb and stealing our Vans, and you got 2 pair of Air Jordans ennywayz n shit. So dude, just be cool and not like a "Oh, I'm so much better than you." douche like just because you had skateboards n pot n stuff doesn't make you better than us, you know. So share the wisdom man, with those of us less fortunate than you. Up the power n powah to dah peepuls, gnome sayin' ?
 
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Remember Al Capone, one if the richest and most powerful gangsters to ever live was never caught and convicted for his terrible crimes. He was successfully jailed in the USA's most secure prison of that day for TAX EVASION. The police never could catch him for any crimes but he didn't escape the IRS. He served his time and later died of an STD after he lost his mind (literally).

More recently Wesley Snipes is currently serving time for tax evasion and he has plenty of money. Like I said earlier, if the CID comes knocking they could care less about the money, they want a conviction.
 
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Ok. So anyone know of a good payment gateway which does not report to the IRS? AuthorizeNet? Some other ones?
 
Ok. So anyone know of a good payment gateway which does not report to the IRS? AuthorizeNet? Some other ones?

Authorize.net is a USA owned company they report taxes, the only way to avoid taxes is offshore merchant account linked to a offshore bank account..this way the money never touches USA soil, now this doesn't mean u can go blow money and buy cars and homes and things like that because u still have to Guess What!!! report it on your taxes because whoever u brought it from reported it on there's showing it was sold to you.

Honestly it's to much of a hassel trying to get around not paying taxes just pay it and call it a day
 
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The OP's question is discussed frequently in the Business and Taxes section, so he should start there and get perspectives from both the fraidy cats ("ooo, you'll get caught, the IRS is all-knowing, so be a tax slave"), and the pro-privacy, or tax-honesty perspective (my bias). Over 65 million Americans do not pay or file each year, whereas only 2,200 are prosecuted for tax evasion. So the fears are a bit inflated.

There is no positive law requiring most Americans to pay or file income taxes (details, see SEDM.org). I have not filed or paid in over 13 years. Those who presume the IRS's jurisdiction is universal will tell you to pay up/you owe, but if you don't presume that to be so in your case, the path of least resistance is to stay below the radar by doing your activity under pseudonyms, and not be trackable by a slave number.

Basically, if you want to conduct transactions with de-facto anonymity and true privacy, get and sustain several stealth Paypal accounts with faux ID contact or profile info. Where possible, keep your transaction activity below the limits that trigger the mandatory issuance of 1099s. If the tax gestapo doesn't know who you are, where you get funds in your name, or store funds, you are functionally invisible anyway. Then if the feds really want to find out something, they'll have to legitimately dig, get a real warrant, and otherwise follow lawful due process, instead clicking a mouse to get your private data.

For bigger amounts of activity, you'll have to use more elaborate tactics, but you would have to do that to manage your money anyway, so have at it. With offshore entities, choose those not compliant with the US info requests, or who drag their feet for years in doing so. Set your banking up in one country, your entity up in another. If you make a big purchase in the US, charge it to your AMEX, then pay it off with your foreign account (paying a bill isn't subject to tax). Practice reasonable methods to avoid the automatic (and very often erroneous) presumption of being liable, and live free.
 
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The OP's question is discussed frequently in the Business and Taxes section, so he should start there and get perspectives from both the fraidy cats ("ooo, you'll get caught, the IRS is all-knowing, so be a tax slave"), and the pro-privacy, or tax-honesty perspective (my bias). Over 65 million Americans do not pay or file each year, whereas only 2,200 are prosecuted for tax evasion. So the fears are a bit inflated.

I gave my perspective as a business owner that got hit with a CID investigation without even as much as an overdue or late notice of payroll taxes not being paid for 17 months. That employee rolled us into a 6 year audit that cost me a ton of money.

Now that you brought up the "no positive law" requiring Citizens to pay or file taxes, respectfully that's incorrect. My BIL just went through this nonsense last year where he read all these BS websites saying he didn't have to file or pay taxes. Well after 13 years of giving the IRS the finger guess who showed up at his place of employment? They seized his ENTIRE payroll checks for 2-1/2 months while he waited for a hearing. They put a lien on his house, his Bank accounts and even his car. At the hearing he printed all his Libertarian information saying how he wasn't required to do this and that and they told him he's damn lucky he's not in jail. It took him 6 months to get it all straightened out and get on a repayment schedule. Unless you've set in a room with seasoned Tax Attorneys and top brass IRS agents you really don't know what happens. I've set in a few of these meetings with strict orders to keep my mouth shut. These meetings aren't your typical how's the wife and kids meetings by paper pushing Attorneys. These guys are bulldogs waiting for the other to flinch so they can pounce.

Before someone seriously believes this stuff about you don't have to file and pay taxes you should read what the IRS says about these arguments because this is what you're going to see if you ever have the unfortunate pleasure of meeting one of these guys:

http://www.irs.gov/Tax-Professionals/The-Truth-About-Frivolous-Tax-Arguments---Section-I

My BIL WAS a die hard Libertarian but his recent shakedown by the IRS for not filing the last 13 years of tax returns has brought him back to reality. I wouldn't recommend anyone that has had income to not file a tax return.
 
Remember Al Capone, one if the richest and most powerful gangsters to ever live was never caught and convicted for his terrible crimes. He was successfully jailed in the USA's most secure prison of that day for TAX EVASION. The police never could catch him for any crimes but he didn't escape the IRS.
He and John Gotti were the first two folks I thought about. (for obvious examples)
Good point, well learned. Keep out of the spot light as needed OP. :cool:

There is no positive law requiring most Americans to pay or file income taxes (details, see SEDM.org).
Ideally we all could live without the infringement upon our liberty. It seems "they" have another plan. :firedevil

Ok. So anyone know of a good payment gateway which does not report to the IRS? AuthorizeNet? Some other ones?
It seems you misunderstand, the IRS is the gateway.
 
Put your money into buying property to rent out, this way, your cash is transferred into assets, and if you spend all your profits on property, then LEGALLY you owe nothing, except now the income that you make from that property is taxable, unless you find an avenue in your business to spend that money on that is also tax deductible. You can also start to use depreciation in your accounts when you have property, but you can also depreacite your computer equipment against your tax bill.
 
Before someone seriously believes this stuff about you don't have to file and pay taxes you should read what the IRS says about these arguments because this is what you're going to see if you ever have the unfortunate pleasure of meeting one of these guys:

http://www.irs.gov/Tax-Professionals/The-Truth-About-Frivolous-Tax-Arguments---Section-I

My BIL WAS a die hard Libertarian but his recent shakedown by the IRS for not filing the last 13 years of tax returns has brought him back to reality. I wouldn't recommend anyone that has had income to not file a tax return.

Please remember I did suggest to do your financial activity under pseudonym, and without an SSN tracking and tagging everything. Of course the IRS tries to UNlawfully enforce and PRESUME tax compliance on all regardless of whether it applies to them, that's why it's called the tax gestapo. People make it somewhat easy to be pursued when they put their assets right there in their name, right on the grid to be seized (with the click of a mouse), as clearly the business above described did. They also make it easy when they use IRS approved accountants, lawyers or other professionals who are already on the government's leash to 'defend' them if they run into problems. Guess which side those guys are really on, when it comes to not having their license yanked? The feds, of course.

And of course they will use unsworn info reports like 1099s and W2s and such to create an administrative or equitable case for tax liability, where a legal one does not exist. The IRS uses that paper trail, on its prejudicially worded forms, to make a party to appear to be under their jurisdiction, and to assess a liability whether the data is accurate or applicable. The issue is not "arguments," but the IRS providing verified proof of claim of a correct, completed or lawful assessment, instead of the paper shuffle. They want everybody to just accept their determinations without proof of claim, because an accepted assessment is the heart of their power to misapply the tax code. What the business should have done is request that evidence formally through the IRS' own FOIA office in Philadelphia, and stood its ground while continuing to put the burden of proof on the IRS to so disclose.

BTW, I have sat in an IRS room and faced down tax attorneys, by NOT keeping my mouth shut because I represented myself (thus could not be ordered to be quiet, or legally rendered incompetent). Of course I have received scare letters, but when I have calmly demanded evidence of a correct, completed or lawful assessment (and made myself judgment proof beforehand), they have backed off. They back off because they CAN'T produce the verified proof, because their case relies on UNsworn, uncorrected and incomplete reports. Without that proof they have otherwise no basis to lawfully pursue you, because there is no positive law requiring you to pay or file. Stand your ground, make yourself judgment proof, and demand verified proof of claim.

And before someone seriously believes IRS scare rhetoric, and their artful misrepresentations of the tax honesty approach (e.g., they tend to abusively mis-characterize all contrary statements as "frivolous," including Supreme Court decisions, sworn affidavits, and admissions by their own current and former IRS officials), you should read this rebuttal to the unsworn IRS propaganda pamphlet:

http://sedm.org/Forms/PolicyDocs/friv_tax_rebuts.pdf
 
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The tax dude from what country? How did the tax dude connect the money making dude to the tax dude's country? Does the American tax dude get to see everyone in PayPals "Making Shitloads of Money" category, so he can pick-out which of those dudes are American dudes?

What if the American dude's ecommerce site is hosted in Left Mongolia? Does the Left Mongolian tax dude call the American dude on the phone and say "Hay dude, you owe us like 5,872 buffalo hooves, and 14 clampchiks of Yak vomit (Left Mongolian currency)."

Can the American dude tell the Left Mongolian dude to make love to a lonely Yak in heat, in her 3rd day of estrus? And if he does, can the Left Mongolian tax dude call the American tax dude in order to extradite him to Left Mongolia?

All of this tax stuff might seem real simple to a master of the skateboarding arts, such as yourself, but some of us grew up on underprivileged backgrounds and didn't even have pot to smoke when were were children, so you have to like be patient with us dude. We're basically handicapped, and you are like kicking crippled people to the curb and stealing our Vans, and you got 2 pair of Air Jordans ennywayz n shit. So dude, just be cool and not like a "Oh, I'm so much better than you." douche like just because you had skateboards n pot n stuff doesn't make you better than us, you know. So share the wisdom man, with those of us less fortunate than you. Up the power n powah to dah peepuls, gnome sayin' ?

Dont know what are you going on about you being poor and skateboarding stories; assuming you know some of my life and making other silly comments.

The guy said he would transfer from paypal to offshore and from offshore to american bank.
If he does that he will get flagged in the country under which he is keeping his money, in this case, as he said, USA.

I haven't said im better than him, I got pissed off coz of his attitude and people trying to help, dot. I think there are a lot more ways to present your question and follow up the discussion other than calling bhw members retards and "newbs"; especially when we are trying to help.

And if you didnt have a skateboard when you were younger, too bad, me neither, hope you can get one soon together with some air jordans so you can achieve happiness.
 
And if you didnt have a skateboard when you were younger, too bad, me neither, hope you can get one soon together with some air jordans so you can achieve happiness.

Thanks tax advice dude! ROCK ON! FUCK YEAH !
 
Too much shit-talking in this thread. Let me get few facts straight.

1. EVERY transaction over 10k EUR needs to be reported to tax services ( it's EU directive, no way about it. I think USA has similar laws, just the ammount varies), and banks do it automatically, without notifing client.
2. This doesn't mean that you can't earn more than 10k without IRS getting on your ass, however. The answer is, PAY TAXES ( hold on... ), but luckily, with global banking, it doesn't need to be your home country... ( i think you're getting what i'm going at already...) - there are countries that have 0% tax rate for corporate income ( 0% rate =/= tax extempt =/= not paying taxes. Those are three different things, explaining the differences is beyond the scope of this post). Until recently, Cyprus was the go-to country for this kind of stuff, but with latest changes to no-double-taxation treaties they signed, currently i'd recommend Seychelles or Panama. You make company there, all earnings and assets are on company name. Everything is clean, and you can show big finger to IRS.
 
You should probably concentrate on constantly earning more money than trying to evade taxes - that is not a fun position to be in when you get caught. Just pay what you owe.

Plus, Paypal issues a 1099 that they send to the govt so how can you even avoid it?

Don't mess around with stuff like paying your taxes

(This is advice coming from a former tax accountant that saw lots of audits of tax evaders)
 
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