Why Do the Wealthy Set Up Offshore Accounts in the First Place

Someone sent us an email and asked "Why would a taxpayer set up an offshore account if they plan on paying the taxes, no matter what?"  Click here to read the original post on why the wealthy set up offshore accounts  (Plus you have to remember that some offshore accounts are set up in countries where there are NO taxes for individuals or corporations - And, the right hand doesn't always need to know what the left hand is doing!)

This is a valid question, and surely comes from someone who uses the Tax Charts to determine their tax liability each year. 

When you are blessed with a seven figure asset base, and an annual income to match your seven figure asset base, your taxes are calculated a little differently then a regular W-2 or 1099-MISC tax return, which does not include capital gains.

A lot more tax laws come into play and sometimes, there are disagreements on what the intent of the tax law actually is.  If the IRS views the tax law one way and your tax attorney viewed the law another way, and prepared your taxes accordingly, the IRS would send a letter adjusting the amount of taxes owed, and it you didn't comply within a set amount of time, they can and will levy your bank account. End of discussion!

The less money you earn, the more secure you are in how much you owe or don't owe the Department of Treasury.  Wealthy people have a lot of concerns when it comes to how much they can save in taxes.  And, some times these issues can end up in court.  And, we are almost sure, attorneys  may test the IRS, in order to see if they can save the client millions in taxes

This subject is above my pay grade, however, I hope I have answered the questions to your satisfaction. www.taxeswilltravel.com