The IRS Is Coming - What To Do

Hey, everybody. Welcome to a message, a live broadcast that literally could save you so much heartache and pain, save you taxes, make you money. The IRS has been locked and loaded now with, under The Biden administration, $80 billion injection of cash to help them collect more taxes. Now, we don't want to freak out. I've got some strategies, some ways to approach this. What to do if the IR knocks on your door, calls you, sends you a letter, emails you. All these questions people have about what the IRS is going to do when they come after me, how do I respond? People, I've got your answers. You need to listen to this. Pen. Handy. I will not let you down. My name is Mark Kohler. I'm a CPA attorney, been in practice over 25 years, helping clients around the country save taxes, protect your wealth and build it. So we're going to dive into it, and I'm here for you. I want your questions. I'm going to try to give you answers that will move the needle, that are going to help you succeed. Now, whether you're watching on YouTube or Facebook, please type your questions in the chat or the method based on the medium of which you're watching this, maybe you're catching the recording and you'll see some of these questions. But do ignore any of the bots talking to you about Bitcoin or some investment or something crazy. That's not me. I'm verified. There'll be a check mark by my name. And I'm not even commenting during this broadcast. So just focus on this, the presentation. Put your questions in down below. And I'm going to hit this for the next 30, 40 minutes. I'm going to rock your world. All right, now, the IRS has been given a mandate. Collect more taxes. And they were given a budget to do it. So what do you do? Number one, before you, the IRS may be contacting you. I want to talk. And we're going to talk about, too. If you owe the IRS money, what do you do? But first, I want to say this. Do not be afraid. Do not freak out. File your tax returns on time with extensions. I love extensions. You actually reduce your chances of an audit. I haven't even filed for 2022 yet. 60% of my clients file after April 15th. And it's okay, but you want to make sure you file by October 15th and pay your taxes. We're going to talk about if you can't afford to. What are you? What. What next? But be aggressive. Don't put your head in the sand. This is what The IRS wants, they want you to be afraid and not write off that cell phone, off that travel, not right off that little expense that maybe relates to your rental property or your side hustle. You might be driving Uber, going, ooh, I better not write that off. The IRS is going to come, people, if you're entitled to a tax deduction, you take it. If you're entitled to a write off, don't be afraid, go for it. If you're entitled to it, hell, bring the auto on. Don't worry about it. Now, if you're trying to hide from the IRS and take money under the table and you got money in bank accounts here and there and you're like, oh, I don't know what, you should clean up your act anyway. You live in freaking America. It's a great country. Yeah, it's got its problems, but we need to pay our taxes after all the legitimate write offs. So report your income, take the freaking write offs and don't be afraid. That's number one. Yeah, the IRS has a bigger budget and they're going to go after people. And you know what? They go after the low hanging fruit. They go after the gazelle that's injured on this out on the Sahara. This is where the lions look for the weakest link. And the IRS looks for the people that aren't filing their tax returns, not paying their taxes, that have a lot of cool toys and live a lifestyle that doesn't match their tax return. Those are the people that are going to get audited first. They're the low hanging fruit, they're the wounded gazelle. So just don't be that person. Stay in the pack, file your taxes, be aggressive and be bold and strong and confident. That's number one. Now let's say the IRS does come and I'm going to talk about those of you that owe the IRS money. I've got some strategies there that'll save you a lot of heartache. Because there's a lot of heartache. Heartache because there's a lot of scam artists out there that still want to take advantage of people. If this wasn't hard enough to try to make a living and pay our taxes. If you get a little bit behind on your taxes, you've got these wolves and sheep's clothing just, they just come after you and they try to get you to spend thousands of dollars to get a deal with the irs, which oftentimes is bull crap. So we're going to come to that in a moment. If you owe the irs, I Want to give tactics and some steps to take. Now, you're going to love this. Number one, what to do if the IRS is coming. Well, guess what? They will never call you on the phone. Never, ever, ever will the IRS call you on the phone. Now, if you're in the middle of an audit with a representative and a lawyer or a cpa, they may be in conversations with an IRS auditor or examiner, but they're not going to call you. They will never call you. So I've even had these scam artists call me on the phone. Hey, you better hurry. The ira, we're coming to collect. And if you don't send us $2,000, we're gonna come put a lien on your home and they'll pull that crap. You tell your mom, you tell your grandma, you tell your dad, you tell all the people around you that if you get a phone call, if someone's saying they're the irs, it is a scam. Just say, oh, thank you. I'll take that under advisement and hang up now. Don't engage with them. Don't call them jerks. Don't call them losers because you have no idea what they could do to your or could come after you. These are terrible people doing this. So don't try to enrage them and go after them. I want to sometimes. Oh, do I want to. But don't. Just say, oh, thank you very much, and hang up. So the IRS will never call you on the phone. The IRS will never email you. They will never email you. So any scam on the. On your. In your inbox that says, we're the irs, we need to collect, and we're coming after you for an older collection or whatever. It's a scam. Ignore it. This should be a breath of fresh air that I'm telling you this. Ignore it. Now, what the IRS will do is send you letters, and you have got to respond to those. And I've had so many clients over the years that put them in a drawer, put them in a shoebox, and then come to my office and go, oh, it's getting ugly. What do I do? Well, guess what? There's nothing we freaking can do now because you've been putting them in a drawer for six months and all of your windows to respond called statute of limitations past. You're screwed now because you put your head in the sand and you hope the IRS will go away. People, I will promise you they will not go away. You ignore it. It gets worse. It does not get better when you ignore it, they will not forget you. And you say, well I moved, it's a different address and if I didn't open the mail, I, I was not on notice. No, ignorance is not bliss. I didn't open the letter is not a defense. You will be effed. So make sure when you get mail from the irs, you immediately open it. And I know it's going to make you hurt, it's going to feel sick in your stomach and you're going to like oh my gosh, I owe the irs. But people, it will only get worse if you don't talk to an accountant or a lawyer and go help me deal with this. And avoid like a plague, those freaking scam artists are going to call and email you the minute there's a lien or some sort of tax notice because they're going to come out of the woodwork and say give us money. And they'll call you on the phone, say thank you very much, hang up. Go to a local or a national CPA firm that you reach out to. I'll give you my contact information. Our law firm, we help clients all over the country and I've got a tax Pro network of CPAs and enrolled agents around the country that will help you that are certified and trained by me weekly that are not going to rip you off, but reach out to someone. Do not get sucked into these scammers that want money over the phone to help get the IRS resolution. And it certainly don't call those frickin AM radio stations and any of the ads on the radio. Stay away. Get a professional through a referral or someone you trust and show them the letter you received. What do you do next? There's a window of opportunity that you might be able to fight the situation. So always respond to those letters. Do not put them in the drawer. If you want to get the IRS coming down on you, ignore them. That's the bottom line now. Now next, the IRS may levy your bank account. If you owe the IRS and you ignore those letters, the first thing you do before they're going to knock on your front door and you're seeing it in the news, people are saying the IRS showed up on my doorstep. All right? But you know what they usually do before that? Send you 50 freaking letters that you ignored. And then you wonder why the IRS showed up your doorstep. Okay, so respond to the letters. If you ignore them, the IRS is going to do one of two things. Next, they're going to levy your bank account and or show up at your doorstep. Now if they levy your bank account. That's a good sign to go see that accountant or lawyer and borrow or put money on your credit card to go get help. Because again, it's only going to get worse. Here's an example. I once had a client with a kid that wrote a bad check at 7:11. It was a $7.32 check. After all the collections and the attorney's fees and the pain in the butt issues of dealing with that bad $7.32 check, it was over $600 in collection fees and attorney's fees and bank fees, everything. That's how the IRS works. You may only owe the IRS $1,000, but by the time you deal with all the BS of the collection and the penalties and the interest and the interest on the penalties, that thousand dollars could be $10,000. So the sooner you freaking deal with it, the better. So if you get your bank account levied, that's another key sign to go get professional help. Now, if they show up at your doorstep, I want to give you seven things to do. Seven things to do. We're going to put this on the. In the description down below. Make sure, Patrick, you're taking notes on these. Number one, if the IRS shows at your doorstep, answer the freaking door. Be courteous. Do not let them in the house. You do not have to call the police if they try to push their way into your house. But number one, be courteous. People, believe it or not, and I've dealt with a lot of IRS agents over the years. They hate their job. They don't need you being a jerk. And they can be. They're going to be tricky. They're out there to collect. I'm not going to lie to you. But you don't have to be a jerk. It's only going to flame the fire. So number one, be courteous. Number two, take anything they give you. Say, oh, do you have a notice for me? Because guess what? They're going to give you the same freaking mail you haven't been opening up. So take the mail, take the notices and go. Okay, thank you. Thank you. Is there anything else you want to give me? So take anything they want to give you. Number three, say, please stay here. I want to take notes. Grab a piece of paper and a pen and take notes. You want to get their ID number, their name, what they're collecting on, what year, what form, and ask questions. I know it's going to be miserable. It's going to hurt. You're going to feel like the world is crashing down on you. I've helped my clients that call me up after that visit from the IRS and they're in tears, hold it together, take notes, find out what the hell they want, how much for what year, and for what form. Because that's what I'm going to ask you. That's what my tax lawyers are going to ask you. What the hell do they want? We got to piece this thing together. Number four, do not give them any information. Do not answer their questions. Do not give them documents. Do not give them bank accounts. Now, they're going to make it sound really bad. They're going to be like, if you don't give me some information here, if you don't answer my questions, we're going to come harder. We're going to do this, we're going to do that. Say, okay, you do that. But I'm not going to answer that question because number five, you're going to say, I'm going to talk to my attorney. And just be confident, say, thank you. I'm not going to answer that question. I'm going to talk to my attorney and say, let me write down that question. And write it down and say, I'll have my attorney answer that for you. How do they get a hold of you? What's your phone number? So you call the irs, they don't call you. So get their name, their badge number, their phone number, their email. They hate emails, too. They don't. They're. They're not liking emails. They're not going to email you. And they usually don't want an email from your attorney. I can rarely ever email an attorney. They want an IRS agent. They want me to upload crap. But get their name, phone number, and badge number. Say, what's your question? Okay, cool, thanks. What other question do you have? Oh, thanks. But do not answer it and do not give any info. So number four, don't give them anything. And number five, tell them you're going to talk to your attorney. Number six, schedule the next call or meeting. Say, when are we going to talk again? Are you going to come to my house? Because we can meet at my lawyer's office or we'll come to the IRS Service center because they're all local. They have a service center within a half hour, an hour, and they're going to say, oh, we can meet at my office on this day at this number. That's where you're going to send your attorney or accountant, because they're going to go help you. So find out what the schedule is. When they want a phone call, when they want to meet and where and ask them. Now your attorney is going to negotiate a new place in a new time maybe. But find out what they want. And number seven, get help. Get help from an attorney or a cpa. And it doesn't have to be local. We can do this from around the country. Others can find an attorney, a tax attorney or a CPA or an enrolled agent that can represent you with the irs. Now an attorney has attorney client privilege. Anything you tell me, I can't tell the irs and I get to negotiate for you. Attorney client privilege is pretty sweet. You tell a CPA or an enrolled agent. Yeah, I really stole the money. Oh I really put the money in my bank account. But don't tell the irs. They have to. And if they get subpoenaed, they will. So be careful talking to a CPA or an enrolled agent about an IRS collection issue because anything you tell that CPA or enrolled agent they will have to disclose that they will get subpoenaed. IRS knows this. So if you can get an attorney in better. All right, now that's the seven things to do. Get some help. Borrow money from family, friends or a credit card if you have to. That's it. I'm going to repeat this. The IRS will not call you. The IRS is not going to email you. And if they will send you letters if you don't respond, they're going to hit your bank account and then number three, they're going to come to your house. And I gave you seven things to do when they show up at your house. And the best protocol of all in this whole story is deal with the frickin mail when it shows up. Because it only gets worse. And I'm sorry, I've been there. I've been on an installment agreement with the irs. I know the feeling when you owe the irs, it's ugly. It's a, it's a feeling that is just makes you sick to your stomach. Now if you owe the IRS now right now we're doing this live in July. So if you owe the IRS back in April, there's penalties and interest racking up. Not terrible. But I'll tell you by October 15th, if you don't pay the IRS or you don't file, it gets worse. Again, let's say you go on a date with someone, go out with that girlfriend or that boyfriend and you make all these promises, oh I'm going to call you. Oh I can't wait to go out next weekend. Oh I Want to go have ice cream sometime? Oh, this restaurant's so great. And then you ghost them. What's going to happen? You're going to get your car keyed. You're going to get some nasty mail. You're going to get your social media blowing up. Do not. You don't want to ignore that boyfriend or girlfriend and ghost them. Not good. Well, the IRS hates to be ghosted, too. And when you don't stay in touch, which means file a freaking tax return, the irs, they freak out because they're like, what the hell's going on? You dating someone else? What's going on? You're going out with my sister, My brother. Are you cheating on me? That's what the IRS wants to know. Are you cheating on me? So if you owe the irs, number one rule, Always file your tax return. Well, Mark, I can't pay. Doesn't matter. File your tax return. Because if you don't file, it's even worse because the IRS doesn't know what's going on. At least they know, oh, you filed. You owe us. All right, cool. We just wanted to know. Just file. Even if you owe. Go to and do an HR block. A Liberty Tax you get with someone at Tax Layer, whatever. Just file your freaking tax return. Even if you owe. Even if you know it's not accurate, and you're like, I'm going to have to amend this later. Better. That's fine. Just file the freaking tax return. Because the penalties are worse when you don't file and don't pay. All right. Okay. Always file. It's number one. Okay. Number two, ask for 90 days. Once you file and you know you owe the irs, they're going to send you that first nasty letter. Open it, call the number, and go. Because they're not going to call you. You got to call them and you're going to go, hey, can you give me 90 days to pay now? Your penalties are still going. The interest will start, keep going. But they're not going to start collection. They're not going to hit your bank account. They're not going to knock on your door. They're not going to lean your house. They're not going to call your mom. If you ask for 90 days, 99% of the time, they'll give it to you. You'll say, I just need 90 days. I'm gonna put the money together. And then you get to work. Borrow, don't steal. Do whatever you have to to get that money and send it to the IRS. You got 90 days. No collection. No phone calls from the IRS ever. But they'll stop mailing you crap, and they're not gonna knock on your doors. But after that, 90 days, you're like, hey, it's been 90 days. Where the hell's our money? Okay, so ask for 90 days. Number three, borrow money if you can. I already alluded to that. Talk to family, friends, hawk something, sell something. Start binging on Dave Ramsey. Who's going to help you get out of debt and sell crap you don't need. Us Americans have way too crap. We don't need downsize. Take whatever it takes, because the IRS is not going to go away. You can't bankrupt out of this, people. It's not going to happen. Number four, you can show undue hardship. You can fill out forms, write a letter with your accountant or lawyer and say, hey, my life's been terrible. Can you give me an extra year without collecting? Sometimes you can get 18 months and an extra year. There's all these different time periods, but it's called undue hardship. I once had a client, her husband had cancer for the second time. Their house burnt down. I mean, it was like their dog died. I mean, it was everything. And the IRS was like, we're not giving you undue hardship. It is not easy to get. I mean, I don't even know how to get it, frankly. After that, client didn't get undue hardship. I'm like, what the hell is undue hardship if they got cancer and their house burned down? It was ridiculous. So don't plan on it, but you can try undue hardship. Number five. And this is the creme de la creme. I've been on this. I've had so many clients. I've had doctors, plastic surgeons, attorneys, CPAs. Get on an installment agreement if you owe the IRS less than 50 grand. There's other levels, too. And this, that, and another. It's a big conversation. But you can get on an installment agreement almost automatically with the irs. They'll take it. They're going to divide what you owe by five years, spread it out over 60 months. Penalties get cut in half. Interest continues to grow, but at least you're on a payment plan. And at the end of that payment plan, you're done. I've been there, done that. That if you can't borrow the money from family or sell something or get a second mortgage or whatever the hell, get on an installment agreement with the irs. It's. It's. It at least again, stops them from collecting. And you're on a Timeline that when you know this will be, this madness will end. Meanwhile, you have to keep current on your current taxes. You can't throw it into the installment agreement. So you have to file, show them how much you owe, get an installment agreement, and then stay current and pay off the old bill. It's tough now. Finally, six, a lot of people will do the offer and compromise. They'll think, oh, I can cut a deal with the irs. I was watching a show late at night eating Ben and Jerry's and I heard that I can pay $1,000 and get out of $100,000 tax bill and I can still be sitting on my boat by the pool in Florida. Seems a little odd, doesn't it? Or, oh, I can settle for pennies on the dollar and be driving my F150 on the beach or through the mountains. Hi. Neat commercial, isn't it, people? I've helped clients get an offer in compromise. They're not easy. The IRS has to say to themselves, we're never going to collect from this bozo. Might as well give them an offer, we'll take a grand, but if they have any in clean, they're going to be able to get their freaking money. They are not going to take an offer and compromise and some company is going to scam you out of three, five or ten thousand dollars to do the offer and promise that great results. Be careful. Now you've lost everything. You have no money. You're disabled. You owed the IRS money because now you broke both your legs and you can't. You lost your business and you owe the IRS and you're working a crappy job trying to hold things together and you owe the IRS big money. You're probably a candidate for the offer and compromise. But if you still have a job, you still have a business, and you got a house, IRS is going to go screw you. We're not taking the offer. We'll just wait around for you to pay because we're going to make your life miserable and we're going to come knock on your door every three months until we get our money. So the offer on compromise is not oftentimes what you think it is. Now, I'm going to jump over here to chat. I want to see what questions might be here from you. I'm here to help answer them. Hopefully we can stick on topic here. And Patrick in the studio is going to be typing up these questions. Mills Electric says, what if you collected money from an IRA for a death of a parent and they say that parent owed Will they tax on interest and tack on interest and fees to me as well, or will I only be charged what I collected? Hmm. What if you collected money from an IRA after the death of a parent and they say the parent owes? Will they tack on interest and fees to me as well, or will I only be charged what I collect? Okay, a couple thoughts, folks. If you inherit from your family, a mom or dad that has passed away and they're going to, they're not going to come after you. If you receive an IRA or some sort of insurance policy or some sort of account, the IRS is going to go after the assets in the name of the parents and they may even open a probate to go after those assets. But you should not have to deal with this. And if the IRS is sending you letters trying to collect from you for what their parents, your parents owed. Again, if you're getting letters, you've got to go to an accountant or a lawyer right away and see if there's anything you can do to help them and, or they can do to help you if you think you owe the IRS or if the IRS is coming after you. But I'm just going to say in general, the IRS is not going to come after you in a situation where they, it was the parents that owed, that's for sure. And if you directly inherited outside of probate, some assets, generally you're off to the races. They're not going to come after that. All right, well, I'm just seeing here if there's any other questions, man. I thought we'd have some more questions from some of you out there that had been fighting with the IRS or dealing with the IRS payments and. Okay, we got a few others in here. Let's grab these. Carlos says luxury vehicle purpose in a business. All right. Wants to go jump over to vehicle write offs. Love it. Client wants in 50, 50 business and personal. Need help with documentation or guidance on how to do it. Right. I know I'll be mainly used for sales purpose. Okay, so Carlos wants to buy a luxury vehicle for his business. Client wants in 50, 50 business and personal. I don't know what that means. You're going to use a vehicle, personal and business. We're going to write off the business portion. That's very common. If it's over 50% business use, we can depreciate it. Usually we're going to go through mileage and look at that option as well. If you go to my website, markjkohler.com and go to Resources, I have a blog and when you're to the blog, type in auto. And I've got and if you even go out on just Google and type Kohler auto deduction, I've got an article I do every year and I go through seven ways to write off your vehicle. Carlos, go check that out. Make sure that you understand which method is best for your vehicle. If it's an SUV or it's a truck, it's going to be a different strategy. If it's an electric vehicle or it's a lot of miles but cheap or it's very expensive and you're not putting on a lot of miles. And if it's a leased vehicle, so there's a lot of options there. Get to my article, Patrick, if you want to cut and paste it into the chat, you know where it's at. It's my January article on autos and so put that out there. Brett says how long can you defer revenue as a business after raising on Kickstarter? Brett now when you go out on Kickstarter or one of these crowdfunding sites and people are giving you money waiting for you to deliver the product or service, typically we have our clients go on accrual method, meaning you're going to have a big accounts payable. You've received this money, it's in the bank and you got a payable to pay these people if you go on an accrual basis as a taxpayer. And there's different rules here on when you can and when you can't. This is a big question for your accountant. If you're on Kickstarter raising money, you, you better have a freaking solid relationship with an accountant and they're going to tell you this issue and how to deal with it. But I'm if you're asking me, that means you don't trust your accountant or you don't have one. But when you're out raising money in a crowdfunding situation, you're going to first coordinate with your accountant, but you're going to have an option of cash basis or accrual. If you go accrual, you've got a debt. You got to pay these people this product that they paid for on Kickstarter and they're going to come off the shelf. And as you deliver those, that's when you're going to collect the revenue. So it's kind of a deferred revenue because you're not ready to deliver the product you've been raising money to build out. In some situations, you're going to be A cash basis taxpayer, meaning when they pay you, you're collecting the income right in that given tax year. And so a cash basis taxpayer, whether you've delivered the product or not, you're collecting the revenue. So keep that in mind and make sure you're coordinating this with an accountant that's very close to your situation, because it's going to depend on a lot of different factors. Next, K9 lever. If your Social Security disability. If you're on Social Security disability, do you have to file taxes? Yes. And canine lover, I want you to be paying taxes. I want you to be filing taxes. I want you to be making money. And you're like, well, I'm on Social Security disability. Yeah, you can only make so much before your disability might be affected. Also, you could be doing passive investments, rental real estate, and other investment incomes that don't affect your Social Security disability. So, K9 lover, make sure you talk to an accountant. Any of you that don't have a good accountant to strategize with, get to markjkohler.com and go up to the top. Right there at the TaxPro network, I've got a network of accountants that have been certified on 70 plus topics, 800 quiz questions. If you're an accountant or enrolled agent, you want to get better trained and provide advisory services. Oh, my gosh. We're changing lives of accountants everywhere, helping everyone better find a good accountant and accountants find better clients. Get to the TaxPro network, K9, and hire an advisor and say, hey, how can I make more money even though I'm on Social Security disability? I'd like to buy rental property. I'd like to invest in crypto online. I'd like to do some trading online. I'd like to invest what little money I can make. I want to invest it and grow. And yes, I want you filing taxes. If you're filing taxes, you're making money, and that's a good thing. So try to supplement that Social Security disability. Rashawn says, I found out my mom owed the IRS after her death, and there is a lien against her home. My dad gifted myself and sister the home. Oh, they did? That's nice. Nice move, dad. Are we responsible for this death? Yes. Since her death, house was hit. Oh, since her death, the house was hit by a tornado. Okay, well, all right. Before the tornado hit, you may have thought the IRS was a tornado, but dad can't just get out of this freaking debt by gifting you the home. The IRS is going to still be all over this, so don't think you're out of the woods. There again, meet with a CPA or an attorney that can help you with this issue and make sure that you get this property cleaned up and the title clear. Now, since the house has been hit by a tornado, there may be some insurance proceeds. I don't know how is the house still habitable? Was it completely destroyed? Did the insurance payout? Because guess what? The IRS is going to come knocking for some of the insurance payout. And I'm not trying to be insensitive here, Rashawn, but your mom owed the irs. She lived in America. She owed taxes. That tax bill has to be paid. There's equity in the home. I'm sorry. And if there's an insurance payout, the people that have a lien against the home, that's all of us, us Americans have a lien against your mom's home because this country costs and it kind of sucks. I know, but the bill's got to be paid and you want to get some professional help right away. And dad, deeding the property around is not going to solve the problem. So be really careful. Hey, mark. We are US citizens but live in Mexico full time, greater than 330 days, have an S Corp and income from clients all over the world. We don't pay Mexico taxes. Can we use the forward income tax credit? Well, first of all, I don't understand Mexico or Mexican tax law. I don't work in that arena. But I will say this. You only get the foreign income tax credit when you pay taxes to a foreign jurisdiction. If you're not paying taxes, there's no credit for paying foreign taxes because you didn't pay foreign taxes. That's just basic definition there. Now you're an expat. For those that don't realize this or know this term, when you live out of the US and you're still a US Citizen, you still have to file a US Tax return. That's why Rachelle's asking this question. And she is considered what's called an expat expatriate. Rochelle is critical you get with a CPA tax advisor that understands expat tax violations. Because you asking this question means you again, have an advisor you don't trust or you don't have an advisor. Or maybe you're trying to double check what your advisor told you. Fair. But really buckle down and pay someone to get some real advice on this. Don't just look on Google and think you can find the answer. Make sure you talk to a tax advisor and Say I want to pay you for an hour and I want advice that I can rely on. Then you're going to get real answers. Not hoping for a good answer. On the Web Michael says, would you ever recommend investing in tax deferred 401k vs Roth 401k, especially in the case. Sorry everybody, that's my phone. If you're driving, would you ever recommend investing in tax deferred 401k vs Roth 401k, especially in the case of being in a high tax bracket. Or do you think Roth all the way? Michael, nine times out of ten I'm Roth all the way. Now, sometimes when you're in a really, really high, really high tax bracket and we want to convert to a Roth later, we may take the tax deduction now and then convert to Roth in a year or two when your income tax bracket is lower. But I'm telling you, almost 95% of the time or more. Every one of my wealthy clients, me and I do the same thing I'm trying is I want to get all of my tax retirement investments into a Roth position. Now, there's going to be those out there that say, oh, you need the tax write off, so go with the 401k or go with the traditional IRA or the SEP or whatever, which is arcane. But if you run the numbers in the long run, you're always better off with the Roth. Now be careful of someone trying to sell you life insurance instead of a Roth. Another way I want to say this too is that a life insurance isn't bad, the traditional 401k isn't bad, and the Roth is incredible. Sometimes it's using a combination of all three. So. But I am saying that Michael, in the long run, and my wealthy clients are all Roth. Now, how you get there and when you get there based on your situation can vary. Get a tax advisor. Really game it, strategize it. There's no answer I can be able to give you here that will specifically help your situation. I don't know your bracket, married or single, how much do you already have in retirement? How much do you put it into your Roth? How much do you have in your traditional. There's a lot of factors. There's. But I'm just going to say 95% of the time you're going to eventually try to get to that Roth. Savannah says, can a C Corp Pay only commissions to shareholders for services provided or sales commission and not paying a salary? W2, what are the IRS red flags? Oh, Savannah, bless your Heart. Everybody listen to Savannah's question. Savannah says, can a C Corp pay commissions to the shareholders instead of doing a W2? Now why does she want to do that? Because she doesn't want to pay FICA on the W2. And why is she trying to get money out of the C Corp? It's because some bozo sold her a C Corp instead of C Corp was good people 99% of the time. No, 999 out of a thousand entities we set up are never a C Corp. If you've got someone trying to sell you a C corp there, and I know someone's going to be here listening to this, being a hater, and they're like, oh, my gosh, Mark, I can take better write offs with the C Corp and I can push income into a different fiscal year, and I can do this and do that. Really? When I'm making two or 300 grand a year, is that really going to push the needle or am I going to end up paying double tax? Well, I mean, if you're making a lot of money, you're going to pay a lot of double tax in the long run, so you better be an S corp. Yeah, so why don't we start out by being a fricking S Corp? I am so sick of people selling the C corp strategy to people because in this one window, the C Corp might work. The only time we use it is in a healthcare strategy called an hra, in a health care plan. So, Savannah, I'm just gonna say this right now. If you're asking this question, you're probably in a C corp and you're hating it, and you're trying to get around the double tax and you're trying to get around fica. I know what you're trying to do. I get it. Some bozo sold you a C Corp. Get one of my tax advisors on my network. Go find an accountant you trust that someone recommends to you. This is not an infomercial. I'm just saying whoever's selling you that or doing your tax return is misadvising. You. Get a second or third opinion, get out of that C Corp as fast as you can. Scott says we have a business that's a secret. Oh, my gosh, another one. I'm sorry. Scott says we have a business that's a C Corp. Can't find an accountant that has scheduled space for us to become an S corp and come off an offset fiscal year. What should I do? 15 Employee Manufacturing Company. Scott breaks my heart. It's almost like You've met someone that just got ripped off by a bad contractor and they put in a kitchen that's dysfunctional or something, you know. And Scott, I am so sorry, but he said he can't find an accountant. So I'm going to say this number one. Talk to one of my tax lawyers at my office. Schedule an hour. We have a comprehensive plan where we review your tax returns and do a trifecta. Might be around 1500 bucks. Could be the best plan ever. And we're going to give you a list of things to do. You, we can help guide you on when to get out of that C corp, but then you're going to need that tax preparer tax advisor that's going to file your tax returns and get you out of that fiscal year. Crazy. My tax advisor network start there and I know they're swamped. I have tax advisors like holy crap, Mark. I'm getting way too many phone calls. It can be hard. But I am adding tax advisors to my program every week and they are pre qualified, trained by me and speak my language. Talk to one of my tax lawyers. They may be able to fast track you into an advisor relationship that could get you out of this crazy train. But Scott, don't give up. Hang in there people. Please, like comment, subscribe and hit the notification bell. I'm not going anywhere. I want to try to help you better live the American dream. We've got a legit network of real tax advisors around the country. A law firm with incredible tax lawyers that can help you put together a plan. And if you're in trouble with the irs, if you're afraid of the irs, if you're nervous about how to be aggressive in your tax strategies, if you want to find solutions, please schedule a call with one of my tax lawyers. Start getting educated. Get onto my blog, my newsletter, my social media@markjcohler.com People, don't give up. Live the dream. Don't live in fear. Take control of your destiny. You can do it and you can fight the irs. If you've got a good position, take it and go. We'll back you up too. Thank you.