Don’t Let the IRS Inherit Your Small Business

28
October

If you are the owner of a small business, then you may have had dreams that you will one day leave your business to your children so that they can continue to run it and continue to allow it to prosper. It has often been the trend throughout history for a business to remain in the family for generations. A father who works his entire life building a business has every right to dream and to imagine that he will be able to leave something useful to his son. He may have spent many years training his son in the matter of how to successfully run the business.

Unfortunately, this dream is rarely realized these days. There is an organization which has been shattering businesses and destroying families faster than any organization in history. You may have heard of this organization, since it is likely that they take a large amount of the money you have earned every single year. This organization calls itself the IRS (Internal Revenue Service). The most troubling aspect of the IRS is the manner in which they take your money. You are forced to give them a portion of your income every year under the threat of violence. If you refuse to pay your taxes to the IRS, then you will typically receive a letter in the mail demanding that you hand over your hard earned money to them. Unfortunately, many people are currently experiencing hard times and are thus unable to meet this demand. If you ignore these letters, then you might expect to hear a knock on your door one day. There will be a bunch of men wearing blue costumes who are armed with a large number of guns. They will demand that you get in their vehicle so that they can lock you up in a cage. Many people are horrified by the idea that a random group of people with guns have decided to show up at their home and try to drag them to a prison. They decide that they would rather defend their property from these men. Unfortunately, the people who try to defend themselves and their property usually face the same fate: they are shot and killed.

The IRS has discovered that this is an excellent way to make a lot of money. When you threaten to kill people if they don’t hand over their money to you, then there is a seemingly endless supply of it. One of the most ingenious methods that they have discovered to extort additional money from people is to tax them after they have died. The current top bracket for this death tax is 55%, as of 2011. Even though the politicians and the IRS has taxed a man many, many times throughout his lifetime, they have determined that after a man dies, they want more than half of the meager amount he has scrapped together to leave to his children. Luckily for the IRS, this man cannot put up much of a fight. It is only his children who will pay the ultimate price if they decide to defend their claim to their inheritance.

If a man’s wealth is mostly tied up within his small business, then this usually means that the business must be sold in order to pay the taxes on it. A man may have worked his entire life to build a solid foundation for his family for many generations to come. Instead, his progeny is forced to sell the business and give more than half of the proceeds to the government. When the remainder is divided up among his survivors, they find that they have only received pennies on the dollar. Rather than maintaining the business that their father poured his heart and soul into, they are forced to continue working tedious, meaningless jobs for the major corporations. If you own a small business, then you need to talk to a lawyer immediately so that your family doesn’t meet this fate.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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