Tuesday, February 10, 2015
Money To Be Made In Amway From Tax Refunds
Seeing as how someone from the IRS is searching for “Amway and federal tax” and reading the relevant posts on my blog about Amway tax cheaters and tax time is upon us I thought I’d revisit this whole get-a-tax-refund-if-you’re-in-Amway that is widely promoted by the Amway cult leaders.
This was the type of tax advice our Amway upline gave us that everything in Amway is a tax deduction and they consider Amway tax returns as part of an IBO income. What the upline really means is the only way an IBO can make money in Amway is to deduct Amway expenses from the income they earn in their real J.O.B and the only Amway income comes in the form of a tax refund. Our upline told us we’d get a big tax refund deducting all our Amway expenses legitimate or not.
At Amway meetings I attended the Platinum and pretty much everyone else in the room would be bragging how things couldn’t be better and their Amway business is growing. Then these same IBO’s claim they’re getting a large refund after filing their income taxes.
My Ambot was fascinated. He had no idea the secret to getting a tax refund - according to our upline - was to become an Amway IBO. Free money from the government!
Refund? Ha, that’s a laugh when your business is doing good.
Ambots can not grasp this concept.
If your business makes too much money (income) and you don’t have enough deductions (expenses) you owe money at tax time. Yay! Business is going great!
If you do not make much money and your expenses are higher that your income then the government issues you a refund. Boo! Business is the shits!
In other words it is pretty much impossible for an IBO to claim business is going great and they’re making lots of money and then talk out of the other side of their mouth about how they’re getting a big tax refund. Or as ambots refer to it: tax return income for running an Amway business.
Most Amway IBO’s in addition to being fake business owners work a dreaded J.O.B. and are employed by a company and receive regular paychecks. When tax time comes around those sneaky Amway bastards deduct all their Amway expenses (XS, Perfect Water, vitamins, food bars, hotels, function tickets, meals, travel, etc) against their job’s income.
That is the only way most IBO’s make money in Amway. By declaring everything they spend on Amway as a business expense and deducting it off their job’s income.
Lying little ambot bastards that they are! Tax cheaters!
Here is a big clue ambots! Unless you own a grocery store, items that you eat (groceries!) and items you use for cleaning up around your house can not be deducted as business expenses in order to get a tax refund. When you’re an Amway IBO if you’re declaring travel and restaurant expenses on your taxes you better be showing some kind of Amway income profit on selling Amway products. If Uncle Sam catches up with you you’ll be up shit creek!
What about people who run a legitimate business that’s got nothing to do with Amway. Legitimate business owners have tax numbers, business licenses, insurance, and accounting software where all monies received from customers and all monies paid out in the course of running our business are entered. Legitimate business expenses that can be used as deductions. We back it all up on a CD and give it to our accountants at tax time. This is because we’re smart enough to hire the services of a professional who checks we entered everything correctly and aren’t missing information and ensures we are not leaving ourselves exposed and who also does their damnedest to make sure they write off as many expenses as they legitimately can so that we have less money to pay back to the government in what we owe in taxes.
Sure the hell beats “counselling with upline” and being told everything in Amway (XS, Perfect Water, vitamins, laundry soap, cleaning products, etc) is a legitimate business deduction!
For the record - our accountant disagreed with the assholes in our Amway upline! Refused to handle anything Amway related. Accountants prefer to deal with legitimate businesses not pyramid schemes.
So much for “never question upline”!
If you are running a pretend Amway business and are taking your upline’s advice on filling out your taxes so that you can earn your money in Amway courtesy of a government tax refund check be prepared to end up in big shit in an audit.
When we were in Amway we were told if nothing else Amway is a good tax shelter. The taxman might disagree. Here is some more interesting reading:
IRS to Amway: The Party’s Over!
IRS answers for business or hobby and deductions. http://www.irs.gov/newsroom/article/0,,id=169490,00.html
The IRS apparently has a guide for their auditors specifically geared towards Amway because of all the abuse from Ambots making phony deductions for their phony businesses. Couldn’t find it online but I did find where someone copied and pasted the IRS guide for dealing with Amway ambots and the areas of abuse that auditors have to be on the look out for such as ambots claiming deductions on things they personally used (to make it look like their sales were higher) and travel expenses, etc. http://www.apollowebworks.com/amway/irs.html
The underlying message (warning?!) is that absolutely Amway Ambots can write off everything – but what happens if they get audited?! LOL!!!!!