I.R.S_Loophole

I.R.S Loophole I.R.S. Loophole Allows Wealthy to Avoid Taxes In recent months some of the wealthiest older Americans have been buying huge life insurance policies on themselves. The article describes once again how the rich get richer and poor get poorer. The wealthiest senior citizens have found yet another way to hold state and federal revenues hostage- and not have to pay their due in taxes. These “privileged” seniors have not shopped for the cheapest rates but for the highest rates they can find. It is reported that in some cases, they are happy to pay 10 times the lowest rates for the insurance. One might ask- why would anyone be willing to pay so much' The answer is simple- Taxes. Through a loophole or a technique invented by a New York lawyer and a chemical engineer, each dollar ($1) spent on this insurance can typically eliminate $9 in taxes. Spend $10 million on this insurance, and avoid $90 million or more in income, gift, generation- skipping and estate taxes. The process disguises a gift to one’s heirs that should be taxed like any other gift involving millions in wealth. This tax exemption on life insurance was approved insurance, tax, gift, premium, taxes, pay, paid, lowest, life, rates, policy, heirs, wealthiest, rich, policies, one, million, loophole, highest, continue, avoid, americans, yet, years, year, week, times, through, technique, tax-free, subject, struggle, step, small, selling