This is the inevitable question.
On every webinar, every Tax Resolution Fast Start Boot Camp, every open Q&A call, and via numerous emails, this is the #1 most frequently asked question in the tax resolution universe.
As such, I figure it’s about high time that I write out a formal response that I can refer folks to in the future.
So if you sent me an email or otherwise posed this question, and I sent you here, welcome, and know that you are not alone. 🙂
First, I’ll give you the short answer: People find the money to pay for what’s important to them.
Here in the United States, the wealthiest nation in human history, there is no shortage of money. Money is literally everywhere. Compared to most other countries, and most other times in history, money is also relatively easy to get.
“Pfttt!” I hear some readers saying. But statistically speaking, it’s true. Here in America, even our lowest income earners make more money in a year than billions of people around the world make in 5 or 10 years.
But money here doesn’t just come from earned income. We also have one of the greatest credit facilities in the world (be that for good or bad). Many people (not everybody, but most), can tap into credit almost at will, and many people do exactly that in order to obtain the money to pay for what matters most to them.
Starting to make sense?
What you’ll find when you start doing tax resolution work is a very simple truth: People had the money to pay their taxes, they simply chose to do something else with the money instead. This is where tax debts come from in the first place.
Many times, people are using their tax money to support a lifestyle that is more grandiose than they should be. This applies equally across the socioeconomic spectrum, by the way. People making $25,000 per year can wind up with a tax debt just as easily as people making $250,000 per year.
So, the money is flowing through them, they’re just not doing with it what they’re supposed to be doing with it (in the eyes of the IRS, that is).
By the way, if you don’t believe me in regards to this matter, I’d encourage you to take the Trailer Park Challenge. This challenge doesn’t involve a bucket of ice water or … Continue reading