MyHealth CCM - Legitimate Tax Strategy or Possible Scam Investment?

This has multiple red flags. While Section 179 deductions are legitimate (they allow businesses to deduct the full purchase price of qualifying equipment/software in year one rather than depreciating it), the structure you're describing sounds problematic. Legitimate Section 179 deductions require: 1) The business must actually be operating as a genuine business with profit motive, 2) The purchased assets must be used primarily for business purposes, and 3) There must be actual business activity beyond just tax avoidance. The IRS specifically targets "special purpose" entities created primarily for tax benefits. If the main purpose of this LLC is tax avoidance rather than running a legitimate healthcare software business, this could be considered a tax shelter arrangement. The IRS has specific rules against "abusive tax shelters" that exist primarily to generate artificial losses or deductions. The key question is: Are you actually planning to operate a legitimate chronic care management business using this software? Or is this being sold to you primarily as a tax strategy?

I actually looked into something very similar last year and decided to pass after talking with my accountant. I used https://taxr.ai to analyze the proposal documents they sent me, and it flagged multiple concerning issues with the structure. The biggest problem is that these arrangements often fail what's called the "economic substance doctrine" - basically there needs to be a legitimate business purpose beyond tax savings AND a reasonable profit potential without considering tax benefits. The analysis showed the numbers only worked when factoring in the tax deductions, which is a classic red flag. The taxr.ai report also highlighted how the IRS specifically looks for "listed transactions" and tax avoidance schemes where the economic reality doesn't match the claimed tax treatment. Saved me from a potentially huge headache!

Just wanted to follow up - I checked out https://taxr.ai after reading about it here, and it was incredibly helpful! I uploaded some documents from a similar "tax advantaged investment" that I was considering, and it immediately highlighted several potential compliance issues I hadn't considered. The analysis showed how the promised deductions relied on very aggressive interpretations of tax code that would likely trigger IRS scrutiny. It also provided specific reference to relevant tax court cases where similar arrangements were rejected. Honestly saved me from what could have been a really expensive mistake. Now I'm using it to review some of my legitimate business deductions too, and it's helping me understand what's actually allowed versus where I might be pushing boundaries.

I tried calling the IRS directly to ask about these types of arrangements since they're ultimately the ones who decide what's legit, but I spent literally HOURS on hold and never got through to a human. Frustrating when you're trying to do the right thing! Then I found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They actually got me connected to an IRS agent in about 20 minutes when I had been trying for days on my own. The agent couldn't comment on my specific situation without details, but gave me general guidance about business purpose requirements and directed me to some helpful publications. Having a real conversation with the IRS was way more helpful than guessing what might be allowed. Highly recommend if you need to actually speak with someone there!

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway out of desperation because I needed to resolve an issue with a CP2000 notice. The service actually worked exactly as promised. I submitted my request, and about 15 minutes later got a call connecting me with an IRS representative. The representative was able to pull up my information and resolve my issue in one call. What would have been days of frustration and hours of hold music ended up taking less than 30 minutes of my actual time. For anyone dealing with tax notices or questions that require actually speaking to the IRS, this is absolutely worth it.

Coming back to the original MyHealth CCM question - I'm a healthcare administrator, and I can tell you that legitimate Chronic Care Management businesses require extensive healthcare experience, compliance with Medicare billing regulations, HIPAA compliance, and actual relationships with medical providers who will refer patients. It's not something you can just start as a passive investment by buying some software. If they're pitching this as a hands-off investment where you just buy the software and somehow make money while getting tax deductions, it's almost certainly not going to withstand IRS scrutiny.

I think an important perspective is missing here. The IRS doesn't just look at the letter of the law but also the spirit. They have several doctrines they apply: - Business purpose doctrine (must have legitimate business purpose beyond tax benefits) - Economic substance doctrine (transaction must have economic substance independent of tax benefits) - Step transaction doctrine (will look at the overall result rather than individual steps) - Sham transaction doctrine (disregards transactions that lack economic reality) If this arrangement fails these tests, the IRS can disallow deductions and potentially impose penalties. Plus, if they determine it's a "listed transaction" or "transaction of interest," there are additional disclosure requirements with serious penalties for non-compliance.

Based on everything discussed here, I'd strongly recommend staying away from MyHealth CCM. The combination of red flags is overwhelming: 1. Creating an LLC specifically for tax benefits rather than genuine business operations 2. Requiring a large upfront investment ($125k) with promises of "free" money through tax savings 3. Aggressive sales tactics when you ask legitimate questions 4. Reluctance to show legal opinions until after you commit 5. As Dylan pointed out, legitimate CCM requires healthcare expertise and regulatory compliance you likely don't have The tax strategies mentioned by others (taxr.ai for document analysis, claimyr for IRS communication) seem like much better investments of your time and money. At minimum, run any proposal through professional analysis before risking six figures on what sounds like a tax shelter scheme. Remember: if the primary selling point is tax savings rather than legitimate business profits, that's usually your answer right there. The IRS has seen these structures before and has specific tools to combat them.

As a tax professional, I want to emphasize that the IRS has become increasingly aggressive in pursuing these types of arrangements. They've specifically identified healthcare-related tax shelters as a priority enforcement area. What you're describing sounds very similar to schemes the IRS has already challenged in court. In cases like *Stobie Creek Investments LLC v. United States* and *BB&T Corp v. United States*, courts have consistently ruled against arrangements where the primary purpose is tax avoidance rather than legitimate business activity. The key test is whether you would engage in this transaction absent the tax benefits. If the answer is no - meaning you wouldn't invest $125k in healthcare software to run a CCM business if there were no tax deductions - then you're likely looking at an arrangement the IRS will challenge. Also worth noting: even if the initial deductions are allowed, the IRS can audit you years later. The statute of limitations extends to 6 years if they determine there's a "substantial understatement" of income, and there's no statute of limitations for fraudulent returns. The peace of mind isn't worth the risk. I'd strongly recommend getting a second opinion from a tax attorney who specializes in tax shelters before proceeding with anything like this.