What Happens If You Never Pay Taxes

What Happens If You Never Pay Taxes – In today’s episode, we’re going to talk about how the rich cut their taxes, but before we learn how to do that, you need to know how the money system works and how banks create money.

We talked about this in our The Baking Scam Explained episode 😱🏦 If you haven’t read that episode it was great!

What Happens If You Never Pay Taxes

In the episode we explain that banks have the power to create money out of nothing using a system called fractional reserve banking.

Reasons Why You Never Get A Tax Refund

Fractional reserve banking is a system used by banks where they lend more money than they actually have. In other words, they make money and lend it to borrowers.

This system allows banks to charge interest on the money they lend, creating debt for borrowers. Almost all the money in the world today is “debt” and 97% of it is created through this fractional reserve system.

That means if they deposit $1000 in the bank, they have to get rid of that money as soon as possible because it is a liability. Ultimately, the bank commits these deposits to customers and returns the funds when customers want to withdraw money.

Banks lend 90% of your deposit to someone else but show your entire account balance. So the bank actually makes $900.

Who Can And Cannot File Income Tax Return Using Itr 1 For Fy 2022 23?

Later, Person C, who sells the product or service, returns this money to the bank. This deposited amount is again subject to fractional reserve banking and the bank lends 90% of $900 to D…

Imagine you have 1 cookie, but you offer 10 friends one cookie, each cookie, when you cut it into small pieces. That’s how banks work. They pay more than they actually have.

Therefore, debt is not taxed; Money is created by debt. If taxed, most people would not borrow money, causing the entire financial system to collapse.

Well, TDU, you’ve said a lot, but I haven’t learned how to avoid taxes yet. Wait, my friend; Now we get into the big players game.

What If You Cannot Pay Your Taxes?

Person B also has $1 million in income, but uses it to buy assets and then borrow $700,000 from those assets.

If Person B borrows $700,000 using the asset as collateral, he will have $300,000 more than Person A because he did not sell the asset.

Assume that this asset grows at 10% per year and the interest rate on the $700,000 debt is 3% per year:

Person B receives $100,000 in appreciation but pays only $21,000 in interest. This means that Person B will have a net income of $79,000 per year tax-free.

Investing And Taxes: What Beginners Need To Know

By using this strategy, you can finance your lifestyle and always have more funds. If you sell these assets, the money you get is taxable because it is considered a capital gain.

The key insight here is to leverage assets for greater leverage. Interest paid on debt is often lower than the return on assets.

We advise you to read this email thoroughly to fully understand how you can use this information to gain wealth. Also, talking to your friends will help reinforce the ideas in your mind.

The entire monetary system was designed because people didn’t understand how the economy worked, and the education system was created by the same person who created the central bank: John D. Rockefeller.

Lazarus: What If The Irs Thinks You Owe Taxes For Money You Never Earned?

Infinite supply is used to maintain collectivism, and in this way the population seeks a solution in the state because of the false illusion of opportunity due to the artificial growth of credit. The only difference is that investing is not taught, so most people end up in debt and become slaves to money.

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A retired dentist received a 1099 form from MetLife saying he received $1,500 for treating a patient he had never heard of. But then the real problems started.

Tax season is here, which means headaches for most, big and small. However, for retired pediatric dentist David Powell, the ticking clock on the April 15 filing deadline entered migraine territory.

Tax Dept Will Not Pay You Income Tax Refund Of This Amount

He recently received a 1099 form from insurance giant MetLife for $1,500 worth of dental work he says he never had. Because MetLife sent those 1099s to the IRS, Powell was seeking taxes on money he never earned.

He told me he tried to fix things on his own, but metlife informed him there was nothing they could do and he was on his own.

The situation is a cautionary tale for those with false tax returns — a bureaucratic hurdle that can turn return filing problems into an unnecessary uphill battle to clear the record.

“It’s a big problem for a lot of people,” said Paul Miller, a certified public accountant in New York. “I can’t tell you how many clients have come into my office with incorrectly issued 1099s.”

Request] Is This Correct?

A 1099 is a payment document. Taxpayers include a 1099 on their returns to show income from sources other than their employer.

These records must match the IRS records. Otherwise, there may be issues like revising your salary.

Miller told me that many times a company that issues a bad 1099 doesn’t make things right.

“They won’t issue an amended 1099,” he said. “For large companies that have to handle thousands of 1099s, this is a huge task.”

What Happens If I Don’t File Taxes?

It’s a mess for a number of reasons, not the least of which is being caught between a large corporation and a large government agency.

Worse, the IRS says, in a situation like this, it’s better to save the money so you can try to make amends later.

“You may end up paying taxes on money you never received,” admitted Rafael Tullino, a spokesman for the tax agency.

Powell operated a dental practice in the Mid-Wilshire area for nearly two decades. Retired five years ago.

Taxation Without Representation: What It Means And History

So it was odd that MetLife sent him a $1,500 check last fall.

He immediately got up. He called MetLife, explained that he had not earned the money, and returned the checks.

Last month, Powell received a 1099 showing that MetLife reported a $1,500 payment to the IRS as if it had cashed the checks.

“I talked to at least half a dozen people,” Powell said. “Nobody could do anything but say they couldn’t do anything.”

How To Fill Out The Irs Non Filer Form

Let’s stop here and acknowledge the fact that MetLife, which generated nearly $68 billion in revenue in 2018, couldn’t fix its own mistakes.

That’s MetLife’s fault, not Powell’s. Putting it in your bag is not only unfair. This is absolutely unbearable.

Powell’s wife, Carol, tried to contact the IRS to avoid potential problems. “After an hour on hold,” he said, “I just let go.”

“If you believe the 1099 is incorrect and cannot get the 1099 issuer to correct the error, you can notify the IRS of the discrepancy to your 1040 and attach a note explaining why you are correct and the issuer is correct.” Wrong,” said Lawrence Zelenak, a law professor at Duke University.

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He and others said it can’t prevent the IRS from seeing your taxes being processed, but it does create a paper trail that prevents an audit before it’s processed.

Another good idea is to contact the IRS Taxpayer Advocacy Service, which, as the name suggests, is a division of the IRS that advocates for aggrieved taxpayers.

This does not mean that they can always give a satisfactory answer. But there are services to help. And it’s free.

One thing you shouldn’t do if you have a 1099 problem is ignore it. Tulino, an IRS spokeswoman, said the agency’s computers automatically detect discrepancies between a tax return and a 1099 filed by a taxpayer.

The $26 Million Question: What Happens If You Don’t File Your Taxes For A Decade?

This will almost always result in a warning letter, which means you are now on the IRS radar screen and will have to deal with the issues one way or another.

“If you do nothing, the IRS is very likely to certify a deficiency,” said Edward Kleinbard, a USC law professor. “An explanation is good for nothing, but it won’t stop

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