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    Amway / Quixtar's Finest News Source           6  Aug   2005

IRS Chief Reports Amway/Quixtar Distributor
Businesses Drain US Treasury 

Washington D.C. (Amway Parody Press)  - In a news conference, IRS boss Mark Everson detailed the IRS's tax gap and how the government is losing hundreds of millions in tax revenue as Amway / Quixtar IBOs write losses off from their unprofitable Amway businesses against their job income. 
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IRS boss Mark Everson		 "Our research confirms that the vast majority of Americans pay their taxes honestly and accurately," said IRS Commissioner Mark Everson. "however the vast majority of Amway/Quixtar distributors lose money and shift the burden to the rest of us."

In a sampling of just 28 IBO tax returns, a total net loss of $252,208 was reported.  This loss averaged $9,000 per business, or twice their gross revenue. 

The group of 28 distributors spent $372,608 to earn just $120,400 in Quixtar bonuses.  IBOs spent over three times their revenue running their "businesses".

 

"What we also found was that the typical Amway/Quixtar IBO spent more in automobile expenses alone than they earned from Quixtar".   "In the sample, the 28 IBOs spent $135,244 driving over 400,000 miles to try to recruit more IBOs who should also just 'buy from themselves', yet they earned only $120,400 in bonuses from Quixtar", noted Everson.      Everson said, "Considering the mileage alone and just 'buying for yourself' like they preach, these IBOs could have each driven to Wal-Mart 1,190 times in the year (3.25 times per day!)  to buy their goods, assuming it was a 12 mile round trip.    Somehow I doubt they are saving money,  time, or miles shopping with Quixtar and trying to teach others to do the same."

The IRS boss noted how Quixtar claimed to have paid out $373 million in bonuses to IBOs in 2004 yet an analysis IBO tax returns, found the majority were losing money from their Quixtar powered businesses.  If we extrapolate the losses from our samples to all of Quixtar / Amway distributors, we might find net losses of over $781,000,000.  This could result in tax revenue losses of almost $200 million, that the other tax payers have to make up.

The IRS boss noted how the all of Amway / Quixtar distributors who get audited and go to Tax court lose since their business is considered a "hobby business".

Because most distributors are losing money, and the tax court does not see it as a "serious business", the IRS head wants to close this tax loop hole and not allow any Amway / Quixtar distributor to offset other income with Amway / Quixtar "hobby business" losses.