Stop Overpaying the IRS: 3 Little-Known Codes That Save Six Figures
Why most advisors miss these opportunities — and how to fix that today.
May 1, 2025
Let's cut to it: most high-income earners and business owners are overpaying the IRS — often by six figures — and they don't even know it.
If you're a top performer earning real money, there's a good chance your CPA is doing exactly what they were trained to do: file your return. But filing isn't strategy. And it's not defense.
The result? You get clobbered year after year because the IRS code is working against you — not for you.
Here are three IRS-approved strategies that the elite use to legally reduce their tax bill. Most advisors won't bring them up. I will.
1. Section 280A: The Augusta Rule
This gem allows business owners to rent their primary residence to their business for up to 14 days per year — and receive that rental income tax-free.
- You can write off the rental as a business expense.
- The income isn't reported on your personal return (if done correctly).
- It's not in TurboTax.
- If your CPA doesn't specialize in high-income strategy, they're likely ignoring it.
2. Section 139: Disaster Relief Payments
Under this code, employers (even yourself if you own the company) can make tax-free payments to employees for "qualified disasters" — including COVID, hurricanes, or even economic disruptions.
- The payments are deductible to the business.
- The recipient pays no income tax on the money.
3. Section 831(b): The Mini-Captive Strategy
This is a next-level move: 831(b) allows a business to set up its own insurance company (a "captive") to insure specific, non-traditional risk — and deduct premiums paid into it.
- Premiums are deductible.
- The captive's income (up to $2.8M/year in 2025) is tax-free.
Why Most Advisors Miss These
Because they're trained to be compliant — not strategic. Because these codes aren't on page one of the IRS manual. And because they don't work with a team that specializes in tax offense, not just defense.
If your current advisor hasn't mentioned any of these to you, it doesn't mean they're bad. It just means you've likely outgrown them.
What to Do Now
You don't need to fire your CPA. But you need a strategic team to layer these kinds of tools on top of what they're doing.
My team helps business owners, W-2 earners with K-1 income, and high-income families implement elite tax strategies backed by the IRS code — not financial products.
If you're paying $50K+ a year to the IRS, we can likely help you keep more of it.
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