Why I Left the IRS: An Insider's Journey

Introduction: Why I Left the IRS

My name is Daveed from Anvil Tax, and today I want to share my personal journey and the reasons behind my departure from the IRS. Accounting, often referred to as the language of business, captivated me early on, shaping my career in profound ways.

Early Inspirations and College Days

During my college years, a famous quote from Warren Buffett about accounting being the language of business resonated deeply with me. Unlike many of my peers who pursued degrees in management or marketing and later had to take additional accounting courses, I chose to major in accounting from the start. This decision was fueled by my growing fascination with tax laws and accounting principles. I realized that taxes, not houses or investments, are the biggest expense people face over their lifetime. This understanding ignited my desire to learn how to legally and ethically reduce tax liabilities, which led me to work at the Internal Revenue Service (IRS) to gain an insider’s perspective.

Entrepreneurial Roots and Family Influence

Growing up in the wheat fields of the Columbia Gorge in the small town of Wasco, I was surrounded by the entrepreneurial spirit of hardworking farmers. This environment instilled in me a strong work ethic and a deep appreciation for entrepreneurship. My family's tradition of blacksmithing and craftsmanship inspired the name Anvil Tax. Our farm life taught me the value of hard work and the benefits of entrepreneurship, principles I now employ in my own business, involving my family in the process, and reaping the rewards of tax benefits.

Experiences at the IRS

When I joined the IRS, I believed it was an honorable career choice. However, societal perceptions made my position awkward in social situations. Despite the occasional social stigma, I persevered at the IRS to deeply understand their processes. The training was extensive, and I was introduced to the Internal Revenue Manual—a comprehensive playbook for IRS procedures and best practices. This knowledge was crucial in developing my expertise and understanding the nuances of tax audits.

Understanding the Internal Revenue Manual

Most people are familiar with the Internal Revenue Code, but the Internal Revenue Manual is equally important. It provides detailed procedures for IRS staff and is a vital resource for anyone dealing with audits regularly. Although not commonly discussed, understanding this manual can be a game-changer for anyone looking to navigate the complexities of tax regulations and audits.

Lessons from Whitewater River Guiding

Before my time at the IRS, I was a whitewater river guide in Idaho, where I learned valuable lessons that apply to my career in tax planning. Just as a river guide navigates treacherous waters, I guide my clients through the complexities of the tax code, helping them legally minimize their tax burdens and plan effectively for retirement and beyond.

The Importance of Good Record Keeping

One of the biggest lessons I've learned is the importance of maintaining good books and records. Inadequate record-keeping can lead to overpaying taxes and significant trouble during audits. Keeping diligent records not only ensures compliance but also aids in forecasting and business planning, helping to avoid costly mistakes and potential bankruptcy.

Navigating IRS Audits and Tax Planning

Working at the IRS, I observed that the lack of transparency and proper planning can lead to unnecessary expenses and hardships. Emotional intelligence and understanding the human element behind tax regulations are essential when dealing with the IRS. This perspective has shaped my approach to helping clients navigate audits and plan effectively to avoid tax pitfalls.

Estate Planning and Avoiding Probate

Estate planning is another critical aspect of tax planning. Many people overlook the benefits of setting up a trust to avoid probate, which can be a costly and lengthy process. Proper estate planning can save significant expenses and ensure that your assets are handled according to your wishes.

The Motivation Behind Writing the Book

My experiences and desire to help my parents and future generations inspired me to write this book. As baby boomers age, proper estate and tax planning become essential to avoid unnecessary expenses and legal hurdles. My goal is to equip you with the knowledge to protect your assets and ensure a prosperous future for your family.

Final Thoughts and Call to Action

I wrote my book to communicate the importance of tax planning, estate planning, and maintaining good records. It's about more than just avoiding taxes; it's about living a life of abundance, love, and leaving a legacy. I encourage you to pick up my book, start this crucial conversation, and invest in your financial future. Let's work together to make smart decisions that benefit you now and in retirement.

Until we speak again, blessings to you and your family.