Introduction to Tax Sheltering

According to Benjamin Franklin, the only certainties in life are death and taxes. Although we can’t show you how to avoid death, we can show you safe, legal, and effective ways to cut your taxes. "Tax sheltering" is not a bad word, or immoral or illegal. The US Supreme Court has upheld taxpayers’ rights to pay the lowest tax possible using legal devices and means. The IRS itself provides many opportunities for taxpayers to lower their taxes by taking advantage of special provisions in the tax code to lower taxable income, take greater deductions, qualify for tax credits, and to invest tax-free or on a tax-deferred basis. While you may not evade taxes (escape from paying taxes due), you have a right to avoid paying taxes by taking advantage of provisions in the tax code that give you a "tax advantage."

When asked, "What’s the difference between tax evasion and tax avoidance?" a prominent jurist once replied, "Ten to fifteen years in federal prison."