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Schemes Unveiled: Insider Tips on Staying Safe During Taxes · The Millionaire Dentist™

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  Hello, everyone, Welcome to the Millionaire Dentist Podcast, brought to you by
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  four Quadrons Advisory. On this podcast, we break down the world of dentistry,
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  finances and business practices to help you become the millionaire dentists you deserve to
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  be. Please be advised we do speak with an honest tongue and may not
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  be safe for work. Hello and welcome. This is Casey Hiers back at
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  the Millionaire Dentist Podcast in studio with co host Jared Bridgeman. Casey, how
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  are you? You just got back from the Florida Dental Convention. How'd that
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  go for you? It was hot? It was hot down there, and
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  it was all the temperature was high too. It was a hot meeting.
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  It was great. Yeah, you've always talked about you know, this is
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  not the first time you've been, and it always ends up being a really
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  great show. It's great. We get asked to come and present two hours
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  of CE. We get to see a lot of you know, friends and
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  dental community people and clients and it's a great meeting. It was a hot
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  meeting. That's awesome. That's awesome. So today there was a hygenis gone
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  wild of and and uh, and one of the venues in the resort that
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  I stayed away. You stay away from that one. Well, today we've
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  got a special guest, the always lovely Kevin Roaden. He is a n
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  B A and a CPA and all around good guy. Kevin, thank you
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  for coming today. Thank you. How you doing. He didn't like the
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  lovely description. Yeah, manly bear. Yeah, so tax season's over.
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  You just kind of kick up and kick your feet up and relax, right,
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  nothing to really worry about, you would think so, But actually no,
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  because we hear from a lot of clients and non client just practice owners
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  out there that you know, the scammers come out of the woodwork with a
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  lot of all these beautiful tax schemes. Well, okay, so like one
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  of the scams the other day, I got a phone call from the I
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  R S and I gave them all my information. That's what I'm supposed to
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  be doing, right, They just give you a call and that goes that
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  way. Bloodsied social Security number. Jared's a glutton for punished, I am.
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  Yeah. Are they scams? They gimmicks, gimmicks and sometimes it's they
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  can take legitimate, legitimate deductions. Legitimate I don't want to call them loopholes,
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  but tax deductions and over sell them. Over time, a lot of
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  these gimmicks end up not being as shiny as they were at the beginning.
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  I glanced at your notes for about seven seconds and I laughed because some of
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  the things on there I hear from practice owners quite a bit where they get
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  very excited about. I mean, just I won't steal your thundersplit. What
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  are some of these gimmicks? Yeah? One and really you can go to
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  the IRS website. I know in the past have talked about something called the
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  IRS's Dirty Dozen, where they actually will let through notices, let taxpayers know
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  of things that are on there the I r S's radar to look at for
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  one of those. One of many is conservation easements. I think for years
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  now, granted it is there's a place for there is a place for it.
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  It's not just an outright fraud. But where these promoters and scammers do
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  is they'll charge fees and not do the proper work. Might What is this
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  conservation easement is where you can claim charitable contribution deductions, uh that for an
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  investment. So you you go with a whole group of people purchase a piece
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  of land for a certain amount of money and then put a conservation easement on
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  it, say there's minerals, some sort of mining, whatever, and then
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  you put a conservation easement on there saying we're not going to strip it of
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  and make money off of whatever valuable materials are there, and you can deduct
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  that value on your taxes. Again, with the proper work done, the
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  proper appraisals, all that, making sure i's or dotted t's or cross proper
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  documentation, it can be done. But where do you see it being abused?
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  Yeah, there's really no blanket answer to that. It's just if it's
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  one of those things that if it's too good to be true, and I'll
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  probably saying that quite a bit today, but if it's too good to be
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  true, then it probably is. If they're offering here you can for one
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  thousand dollars, pay US one thousand dollars, ten thous whatever amount of money,
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  and you can get hundreds of thousands of dollars in tax credits. Might
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  be a little a little bit too fish a little fishy. So would this
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  is this this kind of gimmick? Is this more towards they're trying to get
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  you to buy into a piece of land. It's not something you already own,
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  right, got it? Okay, Yeah, there's only certain areas it
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  has to be a We've seen some that have had whether it's oil or different
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  types of precious metals. What if there's like buried pirate treasure, I would
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  I would dig up the treasure. And so that's just one thing. Another
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  item that we see here in the past few years digital assets, looking at
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  transactions buying and selling of cryptocurrency, virtual currency n f ts, things like
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  that. Any transactions involving digital assets need to be reported. I mean it's
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  they are considered an investment, just like any type of stock. You need
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  to record that. A lot of promoters out there often say that the transactions
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  are untraceable, undiscoverable, undiscoverable by the I r S. But actually the
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  IRS is able to track those. And if if you pop up on the
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  radar with too much so somebody coming in here trying to say I have I
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  have a potential option for us to like almost scam the government itself. Look
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  anty around it. Yeah, okay, here you know, purchase, purchase
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  n f T s or just this picture of an ape I have, right,
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  this border mape ye. Now unless you try to cash out on that,
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  what are they what are they supposed to do? It's just like with
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  any other stocks. If it's uh, you know, if you sell it
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  for a gain, you need to report the gain on that it's intact.
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  But a lot of times these are they never turn into a gain. It's
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  a it's true, I mean, right, I mean some of these things
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  I think to get kind of get back to square one is a lot of
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  practice owners undersaved for retirement, so then they go chasing a lot of people
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  know that. Unfortunately, dentists and specialists are kind of targets. They might
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  have some cash on hand, maybe they've undersaved, and so they have these
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  great ideas and they're susceptible to them. So let's say they want one hundred
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  thousand dollars of some random coin that's gonna go one hundred x by next year.
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  Unfortunately, a lot of practice owners get real excited about this, but
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  nothing comes to fruition. Is that is that kind of a fair way to
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  set that up? That's that's definitely one way that that that happens. You
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  know what the conservation easement Again, they're going to potentially pay a lot of
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  money to buy land to which they do nothing with, and and bank on
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  the tax deductions over time, and there's it's never as easy as credits.
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  Okay, here's here, just pay me this and here you go, here's
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  your tax. Well I talk to people very excited about on the front end,
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  and then on the back end they've been it was it didn't really come
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  to anything except some of their money tied up somewhere. Yeah. Yeah,
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  yeah, and those and and then like digital assets that it's sometimes marketed as
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  all you don't have, there's no tax implications to this, and well there's
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  a red there if you ever hear that, I mean r S. There's
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  tax implications to pretty much everything. Yeah, I mean the breathing air.
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  But I mean it's probably probably coming down the pipe. I mean, if
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  you want to breathe there, we're going to tax you. Yeah. Another
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  one that I thought was interesting is there's getting to be uh art donation deductions
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  that are fraudulent, sort of along the lines of n f ts, where
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  promoters of these scams will encourage you to buy various types of art at a
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  quote unquote discounted price and then donate again quote unquote donate that, and they
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  say the fair market value of that. Say you pay five thousand dollars for
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  a piece of art, well, the fair market quote unquote fair market value
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  of that is twenty five thousand dollars. Well you can, they say,
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  you can between the twenty five the fair market value of it. And IRIS
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  actually has many a huge team of professionally trained appraisers. You have to report
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  what it is and they will investigate and see, okay, is that really
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  worth that? And they'll come after you if it's not. Well, and
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  you know, it really goes to trying to get a I don't want to
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  say get rich quick, but it's it taps into that human psychology of a
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  shortcut, shortcut and winn he won over something else. Well, I mean,
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  when it comes down to it, it's produced industry. Don't make mistakes,
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  save your money, grow your money, retire wealthy. That's a beautiful
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  plan. But unfortunately, if people have neglected that aspect, then they look
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  to these other areas right where they hear, oh, my friend I went
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  to dental school with does this and this and this, and it sounds really
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  good and it's funny, you said art. People love talking about these things
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  like saving one hundred and eighty thousand dollars a year for retirement is kind of
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  it's not as fun to talk about, I guess, but getting into art
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  or you know, you name it. Some of these things conservation easements that
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  the pride I've heard people talk about them with is uncanny, and rarely do
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  these things provide them what they need in retirement. It's kind of a shortcut,
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  unfortunately. Yeah, that's exactly right sidebar. I had a friend once
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  and he goes, you know what, I'm going to get into art?
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  I go, that's random. What kind of art? And he goes really
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  expensive art? And I go, you're on our borderline friendly. Now,
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  I don't know if I can hang out with you anymore, Like, what
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  what does that mean? H m hmm. What kind of art do you
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  like? Your painting from my kids? That's about it. That's a good
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  answer. How much of those? Can you donate those and get a nice
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  taxiduction? Actually I have. That's where I got the twenty That's where I
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  got the That was my example. The guy that bought it and took a
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  twenty five thousand, That was me. No, just kidding, Okay,
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  So if I'm in a political arena, you can sell art for a lot
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  of money. I've heard it's like the thunder dome. What else you got
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  for us, Kevin? What are some of these other gimmicks. Yeah,
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  And here's another one that we've actually come in contact with ourselves with practice owners,
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  is there's these third party helper scams where they'll get in contact with practice
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  owners. Here, we will help you file this form with the federal government,
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  with the state. I mean there's a lot of times with the Secretary
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  of State, there's various census forms. A lot of times with these initiatives.
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  These third parties encourage you to get excited about said gimmick and then they
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  will do the legwork for you. All the responsibility or liability is on you,
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  the practice owner. This third party most likely just brings it to your
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  attention, fills it out, gets paid their fee, they walk away,
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  no strings attached, and the practice owners on the hook for it. Yeah,
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  that's exactly right. And these third third party scammers, again, they'll
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  charge a fee for something that is very simple. The ERC the employee retention
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  credit that was a thing there back there where. There were some great outfits
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  out there that would do a great job with this. There were others that
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  were just going to do anything and everything on the form to get the maximum
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  immediate money back. They get their cut, they're gone eighteen months later.
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  Knock knock, knock. This is out of whack, right, it's outside
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  of the algorithm, and then the practice owner has to deal with cleaning it
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  up. Yeah, and we're seeing the ramifications of that right now. IRS
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  is really coming down hard on the ERC filings that are egregious in those firms
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  that we're out there. They're nowhere to be found. No, they're gone.
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  And you know, then the people that file these, hey, look
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  at my beautiful new sports car on all their social media, and then dots
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  get connected and they're on the hook. We advise all of our clients if
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  they get any any type of solicitation of here, let us help you,
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  even with a Secretary of State's business survey. We'll fill this out for you
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  for five hundred dollars and it's pretty much just refreshing your information with the Secretary
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  of State. That's something we offer that we do for our clients. That's
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  including our services. So they just delete that, send that to us whatever,
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  but don't pay for for things that are actually free, or you can
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  pay me a thousand dollars to do it. Yeah, Jared, I think
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  he I don't even know what I'm doing. I'll do it neither reality.
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  That's what these parties they're just heard. I've heard a lot of nightmare stories
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  about these things. And you know what the common reply is, after the
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  dust settles, I should have known better. And I think on a lot
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  of this, like you know, what's your instincts say, I should have
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  known that this didn't feel right. That goes back to that too good to
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  be true sometimes, Oh man, those the amount they either prey on your
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  fear or they solicit that huge tax deduction, huge windfall of money. And
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  but when you take a second, take a breath, Yeah, that's really
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  too good. Well, these certain if they don't have skin in the game,
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  if they're not you know, an ongoing partner with you, that that
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  is, you know what what happens once this is filed when they tell you,
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  oh, you just sit back and wait for so back and collect your
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  check to come. Oh and well, what part do you have in that?
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  What what accountability or responsibility will none? You know that that's a problem.
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  Last one I want to hit on today is sometimes coming front and this
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  is again from the Dirty Dozen from the RS is real tragedy. It's called
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  real tragedies, but fake charities that you know a lot of times when disasters,
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  I know, coming up on hurricane season during the summer, a lot
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  of tornadoes and and a lot of times fake charities will pop up soliciting donations.
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  And the only way that those donations are tax deductible is if they are
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  an actual recognized five oh one C three organization with the IRS, and the
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  IRS actually has a website on their website on the IRS. Dot gov has
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  a tool where you can look up organizations. It's a tax exempt organization search.
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  So when George Costanza from The Great Show, Seinfeld came up with a
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  human fund on one of the episodes too instead of giving out Christmas gifts,
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  he said, a donation has been made in your name to the Human Fund,
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  and there was no human fund. Yep. So I just wanted to
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  tie Seinfeld into a tax topic. But that would be an example, yep.
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  And Fred Claus, have you seen that one? Vince? Yep.
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  People helping people charity, But no, to your point, you know,
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  when people see tragedy. The best and worst comes out in human nature.
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  But a lot of times people want to help, and so they'll see an
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  opportunity, right, a big check, feel good about it, yep,
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  And it didn't go anywhere. And there's a there's a lot of ways that
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  a practice owner can use the donations, spot local sponsorships that one is good
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  for the community and two does get your name out there. There's a good
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  way. There's a right way to do that, which obviously we can help
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  with. Just be careful of those those solicitations. Yeah, and this is
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  just a small four or five we've covered out of the twelve that are the
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  top twelve for this year. For this year thirty dozen from dirty rodden scoundrels
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  who try to prey on people. So we just named two movies right there.
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  Yeah, Kevin, anything else you want to finish up with on this
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  topic. Yeah, besides you know, obviously visiting the site sure, just
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  to put a bow on it is. You know, I looked up the
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  IRS budget is sixteen billion dollars annually. They have almost eighty five thousand employees
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  and they're looking day in and day out for taxpayers using some of these fraudulent
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  schemes. So it's important that you have someone like us to help keep you
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  off the r S radar. You don't want to be like those old ladies
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  that get caught on the phone scams. Yeah, I mean, I've I've
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  talked to my parents. I don't want to get off subject, but be
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  careful because they are out there and they sound I had a grandma who just
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  fell fell for those all the time. Yeah, well they sound nice.
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  Here's my let me go, here's my social Yeah, here's all my passwords.
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  They sound really nice. I mean the tongue in cheek, but sometimes
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  people want to hear what they want to hear sometimes too. The RS only
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  contacts taxpayers through US Postal service, no phone calls, texts. Yeah,
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  and and there's actually even some through the mail that sometimes you'll see that looks
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  like a legit form, but you really have to see who it's from,
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  where it's from. And well, it's nice now with the ability that most
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  people have access to the Internet in some form to like be able to research
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  absolutely you know, type it in be like so is this entity a scam?
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  Yep? And just Google yep for sure. But yeah, we we
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  get forwarded letters from in emails from clients very often, Hey is this legit?
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  Nope, it's a scam. Yeah, so those are out there,
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  and we just wanted to make sure people are aware. When you hear it,
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  it sounds like, h of course, I'm not going to give into
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  a scam. Well, those that fall for them, yep, don't think
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  that that's a scam. Right, stuff I've grifted. Last piece of vice
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  is to stay away from these unscrupulous tax schemes and stay off the IRS radar.
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  For our clients. We do take advantage of legitimate tax saving strategies.
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  More importantly, we've focus on the big picture. It's incredible how many times
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  we can lower tax liability by thirty forty fifty sixty thousand dollars simply by mastering
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  tax and structures and all the things that we do. And yet some of
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  the stuff people chase yep. Right, and if your current situation was structured
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  better, there are a lot of ways to lower tax liability in a way
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  to put you in no risk or radar. It's just that's right, Yeah,
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  stay away from gimmicks. Stay away from gimmicks. If you want to
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  learn more about how four Quadrants Advisory can help you and your practice. Visit
• 20:33
  four Quadratadvisory dot com. We're going to be out offering CE courses in a
• 20:37
  couple of different areas coming up soon. We're going to be in the Indianapolis
• 20:40
  area. It's a we're doing a bourbon and real financial advice for dentist,
• 20:42
  a specialist event as well as a brunch ones in Westfield, Indiana. One's
• 20:47
  going to be in downtown Indianapolis. We're going to be in Cincinnati. We're
• 20:49
  going to be in Cleveland. We're going to be in the DC area as
• 20:52
  well. Casey's going to be out and about doing his own thing and you
• 20:56
  know, really educating people out there. So make sure sure to go to
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  our side click on events if you want to sign up. Thanks Fellows,
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  Thanks Kevin, thank you. That's all the time we have today. Thank
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  you to our guests for their insight and for sharing some really great information,
• 21:11
  and thank you to you the listener for tuning in. The Millionaire Dennis podcast
• 21:15
  is brought to you by four Quadrance Advisory to see if they might be a
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  good fit for you and your practice. Going over to four Quadransadvisory dot com
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  and see why year after year, they retain over ninety five percent other clients,
• 21:26
  thank you again for joining us, and we'll see you next time.