Like virtually everyone else, billionaires don't like giving more than the bare minimum to the taxman. The difference is that they can quickly bring that minimum down to zero with experts’ help. Though some of their tactics are exclusive to the ultra-wealthy, there are some the average Joe has tried to replicate.

All billionaires hire professionals to save them from "the other inevitable thing in life," but some are better than others. In 2007 and 2011, Jeff Bezos did not pay a penny in federal income taxes. In 2018, Tesla CEO Elon Musk, the second-richest person in the world, also paid no federal income taxes. George Soros once paid no federal income tax for three years.

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This is why during the beginning of 2024 the IRS, with billions of dollars in new funding from Congress, launched a crackdown on the super wealthy along with their partners in February, CNBC reported. According to IRS statistics, audits of taxpayers earning over $1 million annually have decreased by more than 80% over the past decade, despite the number of taxpayers in this income bracket increasing by 50%. 

How do their financial planners do it? For starters, they use a lot of tax deferring. Billionaires usually keep most of their wealth locked up in company shares. When these shares go up in value, so does their net worth, but that's not taxable. Uncle Sam gets his share only when the shares are sold at a profit. The workaround is to simply not sell the shares.

This strategy unlocks another perk billionaires use all the time. Instead of selling their shares to get cash, they can borrow against your current assets and buy more shares. This way, they boost their net worth without triggering a taxable event. 

More advanced tax-avoiding tactics that billionaires use include charitable donations, offshore accounts and receiving generous tax credits. These often require more know-how and investment, but a good financial advisor can advise you.

Finally, some tactics used by billionaires are the work of creative geniuses. For instance, Peter Thiel once had $5 billion in a Roth IRA. This non-taxable account was intended for low- and middle-class savers to shield their assets from taxes. However, Thiel's advisors found a way to stash away the entire GDP of a developing nation.

Los Angeles Clippers owner Steve Ballmer also threw his hat in the ring. The former Microsoft CEO wrote off players' contracts from his tax returns and paid less in income taxes than a worker earning $45,000 a year. Ballmer's advisors found a loophole that allowed them to write off the players' contracts similarly to how factory equipment can be written off.

This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.

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