I have a 9 to 5 job where I earn 87,000 per year. Separating the tax refund for the home business from the full-time job is difficult and I did not do that in the presentation I posted. Surfice it to say, I’ve NOT had a refund of more than $600 dollars for the 10 years preceding 2007. And yes, MLMers do get audited a lot. That’s because it’s so difficult for the government to tell which ones are meeting the criteria for both being a legitimate business and for reporting reporting on their activity.
For instance USANA recently turned up under FTC investigation for being an illegal pyramid scheme (ie, not legitimately moving products to end consumers), among other charges.
My company, Market America, doesn’t just encourage us to, but actually trains us to move products to end customers and has a systemized way of documenting our activity. Additionally, to enforce this, if we DON’T move products to end customers, following our established system, we don’t get paid. If the downline don’t get paid, neither does the upline. This forces the upline to do more than just hype….to work together with downlines to ensure they move products to end consumers as well as properly document it and properly report on it on their tax returns.