A guy got hit with a $12,000 IRS bill right after college with only $6,000 saved, forcing him to quit his job and move home. He shares how a client's yacht with Kobe and Shaq as guests helped close an audit in minutes, proving the IRS isn't untouchable and tax strategy isn't just for the ultra-rich.
I received a letter from the IRS right after I graduated college letting me know that I owed the government $12,000 and I had $6,000 in my bank account at the time. Once I got that letter, I knew I wasn't going to be able to afford my rent anymore. So I quit my job and moved back home with my parents. Literally, my life started changing before my eyes. This person who had been doing football since he was 5 years old gave up on the dream. I didn't even do my pro day. I was in the peak shape of my life and I literally walked out on that dream. The biggest thing that I learned is that if you don't have a plan, the government will come up with a plan for you. I did not learn a lick of tax. For 20 years straight. You're thrown into the real world and you're immediately having taxes being taken from you. You have to figure all this stuff out on your own. One of the clients actually bought that yacht. We ended up getting into an IRS audit. She had documentation of NBA players that came on and off her boat, and she brought Kobe and Shaq and tons of other Laker players onto her boat. We started showing the booklet. Guy that was in the IRS audit in our office, his eyes widened. The booklet got closed, the audit ended. The IRS are very friendly. They're going to sit back and let you talk, let you talk yourself right into a bigger hole. Everybody believes believes that wealthy people have access to all these wealthy advisors and secret tax codes that only the wealthy have. It's not true.
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