Pure Trusts Nothing But Pure Trouble with IRS
Joe Kristan notes here that the US Department of Justice has blocked a Las Vegas scammer from selling and promoting "pure trust" schemes which are basically attempts to conceal income. The scheme was promoted in various states, including Iowa. The US Department of Justice has requested Mr. James DiLullo, the Las Vegas promoter, to disclose names, addresses and social security numbers of all clients for whom he prepared income tax returns for the past ten years. Some Iowa customers may be getting a disconcerting letter from the IRS in the near future.
As Joe so aptly notes:
The Moral: You can't make your taxes go away using "pure" trusts, "constitutional common law trusts," or anything of the sort -- no matter what the salesman says.
Or "if it sounds too good to be true, it probably is".
Trusts can provide a sound estate plan for you, but saving income taxes isn't one of the purposes of trusts.
