Last night I finished completing our teleseminar series, "5 Secrets to Massive Tax Savings." This series focused on the structure and general principals of tax law. It was applicable to any person living in any developed country. Why? Because the principals of tax law cross boundaries and are adopted by all nations.

Our final discussion last night centered on how to avoid an IRS or other tax audit. We discussed the impact your tax return preparer can have on the likelihood of an audit as well as some other things you can do to reduce the chances of an audit. Of course, we also discussed how to handle an audit.

Just prior to the seminar, one of our participants, Roy, sent in the following question:

Q: I have paid the AMT for the last 7 years. Does this affect the likelihood of an IRS audit?

A: The fact of paying AMT does not, in itself, increase the chances of an audit. However, what put you in the AMT may. For example, if you are in the AMT because you have large miscellaneous itemized deductions, I think it's fair to say you have a better chance of being audited than someone without the large miscellaneous itemized deductions. On the other hand, if you are in the AMT because you live in California and pay outrageous income taxes that are not deductible for AMT purposes, you don't have any greater chance of being audited than anyone else.

What I can tell you is that there are many ways to reduce or completely eliminate the Alternative Minimum Tax. We are developing a course right now to address these issues. Look for it soon at http://www.wealthstrategyuproducts.com/tax.html.

Warmest regards,

Tom