Dreos Financial Services

BLOG 4/8/11

THE IRS, OFFSHORE ACCOUNTS AND YOUR BEST ALTERNATIVE

I’ve indicated often that a resource near and dear to my heart is the publication “Independent Living”.  You may or may not be aware for those who use offshore accounts or if you know someone who sends their money offshore to avoid certain tax issues in this country the following should be noted.  In October 2009 a voluntary disclosure program was enacted by the IRS, asking you to voluntarily disclose all of your money and its location offshore.  I’m not sure they received all the results and what they wanted so they enacted in their latest move the 2011 Offshore Voluntary Disclosure initiative and the deadline to participate is August 31, 2011.  The penalty that would be imposed if you do not volunteer this information under the program is 25% of the dollar amount of offshore assets or accounts.  I think this is a very clear indication that all tax shelters especially those with substantial assets they are changing the rules for people who put their money offshore.  They are harassing the banks offshore for information and will attempt to get their fair share if your money is here or in a foreign land.  I don’t know about you but this is a very serious problem.

There is no utopia for investing or hiding assets to avoid income taxes on your money with one exception: I’ve mentioned many times an overfunded life insurance policy stuffed with cash assets, invested in the S&P Index that is available with many companies who provide these products.  In my opinion this is the only solution.  Incidentally, it is noteworthy in a very shaky economy the S&P from March 30, 2010 to March 29^th of 2011 the return was 12.45%.  For those of you who are maybe skeptical you can certainly go on the internet and research that information as I did. 

In summary, we know 401K’s and all Qualified Plans have major tax pitfalls.  We now find out that sending your money offshore is no longer a legitimate option to help avoid income taxes.   All of this has come about because the government is spending money they don’t have and borrowing with a giant credit card, printing money they don’t have and creating debt for future generations.  We see now that they are attempting to reduce the government budget and the deficit and that might help but don’t believe for a moment that the biggest and most obvious solution will be raising taxes.  Your money or what’s left of it needs to be in your own Private Pension Plan.  It’s the only answer and believing that they could put life insurance under the microscope and attack it would turn the world upside down.  There are nearly as many life insurance policies in force as dollars in our current national debt.

There Are Now More Moochers

Than There Are Taxpayers

Source:  Independent Living

            Now here’s where things get truly scary!  Successive administrations have steadily reduced the number of voters who also happen to pay income taxes.  As an editorial in Investor’s Business Daily confirmed: “More than 85% of the personal income tax is paid by a small, overtaxed band of Americans who in number are less than 25% of eligible voters.”

            Worse, the Congressional Joint Committee on Taxation estimates that Obama’s plans to remove even more “disadvantaged” people from the tax rolls (using a system of credits) means that a majority of people who vote in the next election will be nontaxpayers, fully able to tax an oppressed minority (you and me) with impunity, without themselves paying any income tax at all. 

            It goes without saying there are not enough voting taxpayers left to ensure Washington treats us with respect.

            So it falls to you and me, and millions of hard-working people like us, to ensure that our rights as U.S. citizens are protected – because most voters no longer have any skin in the game when it comes to paying income tax.  Most voters simply don’t care if some other segment of the populace is being abused with IRS audits.

Petty Fleecing of the Public Has Already Begun

Source: Independent Living

            You may have noticed the petty fleecing by state and federal employees has already begun.  More state-level, federally-inspired speed traps, automated camera ticket scams, green fines of all stripes, regulatory penalties for petty infractions on home improvement projects, mysterious new Internet and cell phone “surcharges,” and on and on.

            If you like to enjoy afternoons on your local lake, you’ve probably noticed the number of officious police, game wardens, and forestry agents have recently multiplied (all from different jurisdictions trolling for fines, fines, fines) – barking orders at sunbathers and handing out tickets to working-class boaters for ridiculous petty infractions.

            The long arm of Uncle Sam’s intrusive tax collection schemes seems to know no limits.  For example the Census Bureau is now using satellite global positioning systems (GPS) to create a national database of the precise coordinates of each U.S. home (making it easier for government-contracted satellite systems to “inventory” what is on your property).

            These are only early indicators, I am sorry to say.  The tax collection jihad has not yet gotten into high gear.

Obama Telegraphs His Ugly Plans to

Take What Belongs to You

Source: Independent Living

            Oh yes, Obama and his opportunists are still enjoying the reins of power, despite their recent voter rebuke.  Totally unfazed, he is doing much more than doubling the number of IRS auditors, bullying Swiss banks into not accepting any more deposits from American citizens, and internationalizing IRS efforts to punish capital flight from U.S. shores.

            The stage is being set to rip off the public in ways small and large, petty and grand.  Anyone who fails to understand the dark forces at work within the desperate U.S. political class is being set up for the slaughter.