My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Finance

Evade Tax Evasion

Though they can be tempting, abusive tax shelters carry heavy penalties.
1 min read
Opinions expressed by Entrepreneur contributors are their own.

The IRS claims that tax-evasion scheme promoters use foreign banks and trusts to help individuals hide their incomes and create fake deductions. Under law, the federal government taxes all Americans worldwide on their incomes regardless of where they live or where they deposit funds.

If you feel tempted by the claims these promoters make, keep in mind that the penalties, interest and legal costs associated with an abusive tax shelter can be significant. To help you steer clear of illegal schemes, the IRS has prepared a list of red flags that should alert you to questionable promotions. For example, the service says be wary of deals that use foreign entities with no apparent business purpose other than reducing taxes. It's also a good idea to avoid promotions that promise "you'll never pay taxes again."

For more information on illegal tax-shelter schemes, including details of recent court cases, visit the IRS Web site and click on the Businesses tab, then on "Abusive Tax Shelters and Transactions."

SOURCE: Entrepreneur magazine

More from Entrepreneur

Amina AlTai teaches entrepreneurs and intrapreneurs how to balance a thriving career, body and mind.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur