Tax planning can be a daunting task for business owners, especially with constantly changing tax laws and regulations. Redundant Tax Payments (RPT) offers a solution for business owners who want to reduce their taxable income while complying with federal tax laws. With over 20 years of proven success, RPT is a conservative, safe tax deferral strategy that provides significant financial benefits without the risk of penalties or audits.

Proven solutions to reduce your taxes

An RPT allows business owners to reduce their taxable income by up to 70% of their total contributions. This significant reduction frees up resources that can be reinvested in the business or used for long-term financial planning such as severance pay or buy-sell agreements. Unlike other tax strategies that offer short-term gains but are fraught with legal risk, an RPT offers a stable, long-term tax reduction solution.

Debunking the “Grey Zone” Myth

For years, critics of RPTs have argued that RPTs exist in a “gray area” of tax law and are therefore a risky proposition for business owners. However, these assertions have been proven completely false. After numerous audits, appeals, and federal court litigation, RPTs have been proven to be a legal and allowable deduction. Entrepreneurs who adopt RPTs can do so with complete confidence that they are implementing a legally sound strategy.

Voiding IRS Notice 2007-83

One of the key moments in the legal history of RPTs was the invalidation of IRS Notice 2007-83. The notice initially raised concerns about the particular tax strategy, but RPTs have since proven to be significantly different from the scenario outlined in the notice. As a result, RPTs are no longer considered a listed transaction, and business owners can now use the strategy without fear of IRS penalties or legal challenges.

A conservative and safe option

RPTs are designed for business owners who care about long-term financial security and compliance with federal tax laws. Unlike more aggressive tax deferral plans that carry legal risks, RPTs offer a conservative and safe way to reduce taxable income. They have been fully vetted by the IRS and the federal court system, offering business owners a safe way to reduce their tax burden without the risk of fines or penalties.

Flexible for all business types

One of the biggest benefits of an RPT is its flexibility: it works seamlessly with a variety of corporate structures, including S corporations, C corporations, partnerships, LLCs (as long as the LLC is not taxed as a single-member LLC), etc. Additionally, an RPT can be set up alongside other corporate benefit plans, such as qualified retirement plans, without affecting the amounts you can contribute to those plans.

Ideal for trading plans

In addition to the tax deferral benefits, RPTs are an excellent tool for business owners looking to plan for the future. They can be used as part of a buy-sell agreement or business succession plan, helping owners manage these transitions in a tax-efficient manner. By incorporating an RPT into their financial strategy, business owners can achieve a smoother, more secure transfer of ownership while reducing their tax burden.

Zero risk of penalties

One of the most attractive aspects of an RPT is that it is risk-free. Unlike other tax deferral strategies that can run into legal complications, an RPT is fully vetted and legally recognized. Entrepreneurs who employ an RPT can be confident that they are using a safe, penalty-free strategy to reduce their taxable income.

More than 20 years of experience

For over 20 years, RPTs have delivered on their promise of significant tax savings and financial benefits to business owners across the United States. Despite facing legal challenges and enduring intense scrutiny from the IRS, RPTs continue to thrive. Entrepreneurs who implement RPTs can do so with confidence, knowing they are participating in a proven, legally sound tax deferral strategy that works 100% as advertised.