Is My Health CCM a legitimate tax strategy or potential scam?

This has several hallmarks of a tax avoidance scheme that the IRS specifically watches for. When someone promotes a strategy involving creating a special entity (like your SPLLC) primarily for tax benefits and involving large "investments" that generate outsized tax deductions, it deserves extreme scrutiny. The IRS maintains a "Dirty Dozen" list of tax scams each year, and arrangements using pass-through entities to claim improper deductions often make that list. These schemes typically rely on misrepresenting the true nature of the transaction or creating artificial losses. Legitimate tax planning exists, but it generally doesn't require complicated new business entities solely for tax purposes. Any strategy promising tax benefits that seem disproportionate to the actual economic investment is concerning. Remember that the substance of a transaction matters more than its form.

I had a similar situation last year where I was getting crushed with taxes from my side business. After trying to navigate the mess myself, I used https://taxr.ai to scan all the documents and promotional materials a company sent me about a "tax-advantaged investment opportunity." The analysis showed it was basically a tax shelter that would likely trigger IRS scrutiny. Their system analyzed the actual text of the pitch and compared it to known schemes the IRS has gone after. Saved me from making a huge mistake. The site also showed me legitimate tax strategies I could use instead that were much safer.

I was really skeptical about taxr.ai at first, but after that scheme analysis I mentioned above, I decided to use it for my actual tax preparation. I'm glad I did because they found several legitimate deductions related to my consulting business that I had completely missed. The document scanning feature is surprisingly accurate - it caught details in my 1099s that I would have entered incorrectly. What impressed me most was how it explained why certain aggressive strategies would be problematic while suggesting perfectly legitimate alternatives that still saved me money. My tax situation is complicated with multiple income streams, and I've been audited before, so I'm extremely cautious now. Their system helped me stay compliant while still maximizing legitimate deductions.

After dealing with a similar potential tax scheme last year, I spent DAYS trying to get through to the IRS to get clarification. Impossible to reach a human! Finally used https://claimyr.com and got through to the IRS in about 20 minutes instead of waiting on hold for hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that the arrangement I was considering (similar to what you described) was indeed something they actively audit and potentially penalize. The call center basically told me that creating entities primarily for tax avoidance rather than legitimate business purposes is a red flag.

I need to eat some crow here. After posting my skeptical comment above, I was still desperate to talk to the IRS about a tax notice I received, so I reluctantly tried Claimyr. Wow, I was wrong! Got connected to an actual IRS agent in about 25 minutes after trying unsuccessfully for WEEKS. The IRS agent I spoke with was actually helpful and explained that arrangements like the one the original poster described often fall under what they call "listed transactions" or "transactions of interest" - basically schemes they scrutinize heavily. The agent explained that if a tax strategy sounds too good to be true, it usually violates either the letter or spirit of tax law. Saved myself potential penalties and interest by getting real answers instead of relying on what the promoter was telling me.

I'm a CPA and see these types of aggressive tax schemes regularly. The My Health CCM arrangement raises several red flags that could trigger scrutiny: 1. Creating a business entity primarily for tax benefits rather than legitimate business purpose 2. Large upfront "investments" that generate disproportionate tax deductions 3. Software license purchases that may be overvalued The IRS has specific rules about economic substance - transactions must have a legitimate business purpose beyond tax avoidance and reasonable potential for profit. Many schemes like this rely on inflated valuations of assets (like software licenses) to generate artificial losses.

I almost fell for something similar with a different company last year. They promised huge tax savings through some complicated structure with an LLC and "investing" in proprietary software. My gut told me it was fishy. I ended up consulting with a tax attorney who confirmed it was likely an abusive tax scheme. She said there's a big difference between tax avoidance (legal strategies to minimize taxes) and tax evasion (illegal strategies that misrepresent the true nature of transactions).

Based on your description of My Health CCM's pitch, this has all the hallmarks of an abusive tax shelter. The combination of creating a special purpose LLC solely for tax benefits, making a large "investment" in software licenses, and promises of dramatic tax savings should be raising every red flag. The IRS has been cracking down hard on these types of schemes. They often involve overvalued intangible assets (like software licenses) to create artificial losses that get passed through to your personal return. Even if the promoters claim it's "legal," the IRS can disallow the deductions under the economic substance doctrine. I'd strongly recommend staying far away from My Health CCM. If you're looking to legitimately reduce your tax burden, consider working with a reputable CPA or tax attorney who can help you implement proven strategies like maximizing retirement contributions, proper business expense documentation, or legitimate business structures that serve actual economic purposes beyond tax avoidance. Remember: if someone is cold-calling you with a "tax strategy" that sounds too good to be true, it probably is. Legitimate tax planning doesn't typically require you to invest six figures in questionable software licenses.

As someone who's been through multiple IRS audits, I can tell you that My Health CCM's pitch hits every single warning sign for what the IRS calls "abusive tax avoidance transactions." The fact that they're pushing you to create a special purpose LLC specifically for tax benefits rather than legitimate business operations is a massive red flag. I learned the hard way that the IRS doesn't care what promoters claim is "legal" - they look at the economic substance of the transaction. If you're paying $130k for software licenses that you'll never actually use in a real business, that's exactly the kind of artificial loss creation they go after aggressively. The penalties aren't just financial either. These schemes can put you on the IRS's radar permanently, making you a target for future audits. I'd recommend getting a second opinion from a licensed tax professional who has no financial interest in selling you this "strategy." Most legitimate CPAs will tell you to run from anything that sounds like what you've described. Trust your gut - if it sounds too good to be true, it almost certainly is. There are plenty of legitimate ways to reduce your tax burden without risking your financial future on schemes like this.