I know this blog was just barely starting to get some traction before I went all emo after a breakup with my girlfriend of 5 years. But really, you don't give a damn about that, and I don't blame you. We're back for 2008 with more dedication and, more importantly, a better understanding of what is needed for a daily blog (which is what I want it to be).
I've got Adjusted Performance Percentages done for the Big 10 and SEC, and will begin posting them when I'm done with the BCS conferences. This offseason, I'll cover the mid-majors, too.
So, sit back, put your seatbelts on, because even though it's January 31st, it's always college football season.
Tax Filing Q & A
I understand that during this tax season many of you are looking to get a rapid refund from a tax preparation company.
Labels:
Stop Tax Liens
Collection Agencies versus IRS Collectors: Who can Kill Your Dreams Faster?
Are you drowning in debt? Do you have collection agencies calling you all the time? Are you considering bankruptcy? Now take all of that stress and add an IRS tax debt into the mix. When I was an IRS-Hitman we expected you to pay your IRS debt first and any other creditors second. In fact we didn’t even consider credit card debt to be a necessary expense when we used to figure out your base income. So which debt should you be more worried about?
IRS Tax Debt and Marriage: For Better or Worse
I received the following e-mail from a lucky bride to be who had a question about her future husband’s IRS tax debt.
I am engaged to a man that is deeply in debt to the IRS. Currently, he has no property in his name that the government can take. If I marry him, and change my name to his, can the IRS seize my property and income to satisfy his debt?
When you marry someone and you’re saying your wedding vows, there’s that one little line about “for better or worse”. Well if you marry someone with an existing IRS tax debt, that’s what “or worse” means.
Marrying someone who already has an IRS tax debt also means that you’re marrying their tax debt too. You are just as responsible for paying back that debt as your new spouse.
The woman who sent me the e-mail asked if the IRS can seize her income or property and the answer would be yes! But the IRS-Hitman wants to help these love birds, so let me tell you some tips that may help them.
This man of hers needs to get his debt settled or under control before they’re married. Now she tells me that he doesn’t have any property of his own for them to seize, and even though I haven’t gotten the specifics of the rest of his financial situation he may be eligible for an Offer in Compromise where the IRS will settle the debt for a single lesser payment.
Now an Offer in Compromise is very difficult to get, and you have to prove to the IRS that your income and assets are not significant enough to ever pay the debt off. For specific information on an Offer in Compromise read my article “Settle Your IRS Tax Debt for Pennies on the Dollar”.
What about our soon to be blushing bride? Is there anything she can do to avoid having to take on this IRS debt? There is a solution called Innocent Spouse, but it doesn’t normally apply to newlyweds, especially when the spouse to be already knows about the debt. But I’m going to list the requirements for Innocent Spouse because I know some of you out there may be able to use it to solve your IRS debt brought on by a loving spouse.
- The taxes owed have to be theirs. That means if you filed jointly, you owe it. The consolation is that they do too.
- You can prove you were unaware of the debt, thought your spouse was going to pay, or were unaware of items changed in an audit.
- The debt would cause you hardship. This means you couldn’t afford to pay basic living expenses like food and utilities.
- You suffered abuse in the relationship.
Luckily this woman knew about the debt, and was able to get information that can help her deal with the situation she’s in. However there are millions of marriage where a spouse finds out only too late that they now have a debt due.
Now she has the smoking gun…and so do you.
IRS Tax Deductions for Small Business: Give Your Business a Chance to Grow
Still on shaky legs…You’ve been in business for two years with your small business. I’m sure you know that the majority of new businesses end up in the red for the first couple of years which can make thing very difficult for you. This is the time that the IRS waits for you to make a mistake, because like on the African plains you’re the weaker animal that the lions eat.
If you operate your business out of your home and you can prove that part of your home is used as your primary place of business then you can write off part of your property tax. Even if you rent your home you can claim part of your rent as a deduction.
Interest on business loans can be claimed; again you must prove that the loan is applied to your business.
Travel expenses that pertain to business can be written off. If your vehicle is used for business, especially if you are a private contractor, you can write off gas and maintenance on the vehicle. Save all of receipts.
Equipment, and office supplies specific to your business are eligible. Be careful on this one, certain expenses are considered legitimate and others aren’t. A new truck to expand your business is acceptable. A new car for yourself does not, even if you claim it’s good PR because it shows you’re successful.
You can also write off insurance premiums related directly to your business.
Labels:
Business Tax,
Small Business
Tax Debt Tales of Woe: Uncle Sam Wants Your Car
When I worked as an IRS-Hitman I was witness to and involved in some sad cases. I witnessed people see their entire life’s work loaded on to trucks in front of them. I have stood in front of grown men, men the same age as my father, with tears streaming down their faces begging me not to sieze his assets in front of his children.
An IRS-Hitman is brutal and indiscriminate in his actions. If we came to your house we had the right to seize everything. The only thing you’re entitled to keep is a bed to sleep on and one chair or couch to sit on. Everything else: your TV, dressers, kitchen appliances, jewlery, etc…will be taken to pay your IRS tax debt. IRS-Hitmen are not hired because of their mercy. But what about my car you ask? As far as we were concerned, there’s public trasportation.
One of our tricks, I’m told this isn’t done anymore, was to call a debtor in to speak with his IRS revenue officer. While he was in the building we would seize his car from the parking lot! He would come out of the IRS building to find his car gone. We did give him bus fare.
Let me tell you, the IRS is ruthless, but you know this. Here’s how ruthless they can be…we would reposess cars that were worth less than the repo and storage costs. The IRS will actually pay more to have the car repo’d than it will sell for at auction. And then we added the fees onto the person’s IRS tax debt.
Here’s another one, this was a job my father did. A private ambulance service had a tax debt. So my father and his crew put in a call that they needed an ambulance. When the ambulance showed up to “help” they seized it right there.
And of course I have seized a preacher’s car. Right out of the church parking lot during services. And I know it is a cliché, but the car was a very nice Cadillac.
Everything you have is fair game for an IRS-Hitman.
Brace Yourself For More…Tales of an IRS-Hitman!
Labels:
Children and Tax Debt
Tax Debt Tales of Woe: Offers in Compromise
I have talked before about the pitfalls of trying to settle your IRS debt for pennies on the dollar, or an Offer in Compromise. I have shown how only 2% of those who apply actually get approved. I have shown that if you have any way, any way at all that you can make payments you will be denied an offer.
Now I would like to share some stories about Offers in Compromise. All of these tales are from the time after I left the IRS and began using my skills to help the average tax debtor. Even when the Offer in Compromise is accepted the situation that allowed it to be accepted was a result of the person losing everything. Here are the first true tales of Offers in Compromise.
For more information on the Offer in Compromise read my earlier entry “Settle Your IRS Tax Debt for Pennies on the Dollar”.
The Shocking Case of the Misfiled Payroll Taxes: There was a husband and wife who owned an electrical repair company. They were clients who came to me for help to get an Offer in Compromise. They had owned their business for several years and the business did fairly well. As with most small businesses however they didn’t change their lifestyle to take into account their quarterly payroll taxes that needed to be paid. The IRS came on the scene to assess a $100,000 lien against them.
Because they hadn’t kept up with the quarterly taxes they lost their business, their home, their car, their boat, and all the other comforts they had earned from a lifetime of working.
They were both in their mid 50’s and starting over wasn’t a likely option. After the IRS took them out the husband became a used car salesman and the wife is now a part time clerk at a law firm.
Because they had lost everything and had no assets of any worth I was able to get their tax debt of $100,000 settled for $8,000. But you have to remember, the only reason they got that Offer was because they had lost every thing.
The Case of No Mercy for the Fat Cat: I once spoke to a man who owed over $200,000 in back taxes. This guy was well off. He owned a home and had a $9,000 per month mortgage. He had two kids, both in private school. He asked for my help in getting him an Offer in Compromise. I did a income and lifestyle estimate and informed the client that the IRS would not consider him for an offer. I informed him that his mortgage and his chidren’s private school expenses were not considered “basic expenses”, nor were his credit card payments.
The private school and credit card payments are understandable as “not basic” but why not the mortgage? The national average for housing and utilities is 1700 per month. The client had a mortgage of $9,000 per month, well above the average. The only way he could have qualified would be to take his kids out of private school and sell his house. And if he sold the house the IRS would expect the money from that sale. He still wouldn’t have qualified because his annual salary also prevented him from qualifying.
Brace yourselves for more Tales of the IRS-Hitman!
Now I would like to share some stories about Offers in Compromise. All of these tales are from the time after I left the IRS and began using my skills to help the average tax debtor. Even when the Offer in Compromise is accepted the situation that allowed it to be accepted was a result of the person losing everything. Here are the first true tales of Offers in Compromise.
For more information on the Offer in Compromise read my earlier entry “Settle Your IRS Tax Debt for Pennies on the Dollar”.
The Shocking Case of the Misfiled Payroll Taxes: There was a husband and wife who owned an electrical repair company. They were clients who came to me for help to get an Offer in Compromise. They had owned their business for several years and the business did fairly well. As with most small businesses however they didn’t change their lifestyle to take into account their quarterly payroll taxes that needed to be paid. The IRS came on the scene to assess a $100,000 lien against them.
Because they hadn’t kept up with the quarterly taxes they lost their business, their home, their car, their boat, and all the other comforts they had earned from a lifetime of working.
They were both in their mid 50’s and starting over wasn’t a likely option. After the IRS took them out the husband became a used car salesman and the wife is now a part time clerk at a law firm.
Because they had lost everything and had no assets of any worth I was able to get their tax debt of $100,000 settled for $8,000. But you have to remember, the only reason they got that Offer was because they had lost every thing.
The Case of No Mercy for the Fat Cat: I once spoke to a man who owed over $200,000 in back taxes. This guy was well off. He owned a home and had a $9,000 per month mortgage. He had two kids, both in private school. He asked for my help in getting him an Offer in Compromise. I did a income and lifestyle estimate and informed the client that the IRS would not consider him for an offer. I informed him that his mortgage and his chidren’s private school expenses were not considered “basic expenses”, nor were his credit card payments.
The private school and credit card payments are understandable as “not basic” but why not the mortgage? The national average for housing and utilities is 1700 per month. The client had a mortgage of $9,000 per month, well above the average. The only way he could have qualified would be to take his kids out of private school and sell his house. And if he sold the house the IRS would expect the money from that sale. He still wouldn’t have qualified because his annual salary also prevented him from qualifying.
Brace yourselves for more Tales of the IRS-Hitman!
Small Business IRS Tax Debt: Is Being Your Own Boss a Dream or a Nightmare
Fragile, handle with care…Owning your own business, being your own boss; for many of you this is the American Dream. But that dream can turn into a nightmare because the IRS takes a special interest in small business owners. Why? Your business is an easy mark for an IRS-hitman.
Why you? There are plenty of reasons we can come after a business, but the most common reason is because you did not file your quarterly 941 payroll tax forms. On your employee’s paycheck, all that money that gets taken out for taxes…as the employer you owe the IRS that money. And you better pay it on time, every three months, or else!
Too often a small business owner will take that tax withholding money that should go to the IRS and use it towards the business, especially if their finances aren’t too good. Many business owners promise they’ll make it up next quarter; but the next quarter comes around, business still isn’t good…you see where I’m going with this.
It’s time to pay the piper. As soon as you miss that first quarterly payment interest and penalties begin accruing immediately. Even if you manage to pay back the money on the next quarter, you still have the interest and non-filing penalties to pay too.
Believe me it adds up quick too. When I was an IRS-hitman we would be at your door within a year ready to start seizing first equipment for your business then furniture. And if you still owed, we shut you down and took the proceeds from the sale of all your stuff. If that still didn’t cover the debt we would start seizing your personal accounts and property.
Stay in Compliance! When you’re a new business it is really tempting to use the payroll tax withholdings to make improvements to your business rather than have to borrow more money from a bank or creditor. But you’re gambling with Uncle Sam’s money. Even if it might make your business suffer or even cause you to lose your business it’s a lot better to have something like that happen and not have an IRS debt on top of it.
Now you have the smoking gun…Use it! .
Why you? There are plenty of reasons we can come after a business, but the most common reason is because you did not file your quarterly 941 payroll tax forms. On your employee’s paycheck, all that money that gets taken out for taxes…as the employer you owe the IRS that money. And you better pay it on time, every three months, or else!
Too often a small business owner will take that tax withholding money that should go to the IRS and use it towards the business, especially if their finances aren’t too good. Many business owners promise they’ll make it up next quarter; but the next quarter comes around, business still isn’t good…you see where I’m going with this.
It’s time to pay the piper. As soon as you miss that first quarterly payment interest and penalties begin accruing immediately. Even if you manage to pay back the money on the next quarter, you still have the interest and non-filing penalties to pay too.
Believe me it adds up quick too. When I was an IRS-hitman we would be at your door within a year ready to start seizing first equipment for your business then furniture. And if you still owed, we shut you down and took the proceeds from the sale of all your stuff. If that still didn’t cover the debt we would start seizing your personal accounts and property.
Stay in Compliance! When you’re a new business it is really tempting to use the payroll tax withholdings to make improvements to your business rather than have to borrow more money from a bank or creditor. But you’re gambling with Uncle Sam’s money. Even if it might make your business suffer or even cause you to lose your business it’s a lot better to have something like that happen and not have an IRS debt on top of it.
Now you have the smoking gun…Use it! .
Labels:
Business Tax,
IRS Forms,
Small Business
IRS Tax Liens, Bank Levies, and Living with Them
Stop screwing around! Before the IRS makes you a target they send you a couple of letters. Most people who are in debt make the mistake of ignoring any letters the IRS sends. Take action before you receive a third letter from the IRS. Why the third letter? That is the “intent to levy” letter, and that’s when the IRS owns you. And how can the IRS own you?
Have you been saving for anything lately? Maybe you were putting money aside for a vacation, or even your retirement. Remember that Uncle Sam wants you…to pay him his money first.
Here’s what happens with a bank levy: you go to the store and try to use your debit card. It gets declined. You try to use again…it’s declined again. You’re sure you have money in the bank, so you call them. The bank has the pleasure of informing you that the IRS has seized your accounts. You can’t access your funds: not for groceries, not for rent, not for anything. The good news is a bank levy is pretty easy to lift. The bad news is it gets lifted after the IRS cleans you out.
Home Sweet Home…The IRS can also put a levy on your home. In short you can’t refinance, take out a loan against the equity, or even get the city permits to make improvements. When your home gets levied you are in double trouble. Even if you have equity in your home, you couldn’t take out a loan to pay off the debt. So we would go after their bank accounts or wages. It really is a vicious circle.
We’re not done yet…and for now for the last trick. Not only could I take the money from your bank, and put a lien on your home. I could put a tax levy on your credit. A tax levy will cripple your ability to get a loan for anything, and can cause you to loose your job in some fields. I would hear people beg to have that lien lifted because they would get fired. I would tell them if they wanted the lien off of their credit they needed to pay the debt. And that’s the rub; a levy on your credit only comes off after you’ve paid the debt in full!
What can I do Hitman? Unlike some of the IRS’s other collection actions there isn’t much you can do with liens and levies until you pay that debt; or the IRS gets it out of you. Don’t make the common mistake of so many tax debtors. Now that you know what will happen, don’t wait for that third letter
Have you been saving for anything lately? Maybe you were putting money aside for a vacation, or even your retirement. Remember that Uncle Sam wants you…to pay him his money first.
Here’s what happens with a bank levy: you go to the store and try to use your debit card. It gets declined. You try to use again…it’s declined again. You’re sure you have money in the bank, so you call them. The bank has the pleasure of informing you that the IRS has seized your accounts. You can’t access your funds: not for groceries, not for rent, not for anything. The good news is a bank levy is pretty easy to lift. The bad news is it gets lifted after the IRS cleans you out.
Home Sweet Home…The IRS can also put a levy on your home. In short you can’t refinance, take out a loan against the equity, or even get the city permits to make improvements. When your home gets levied you are in double trouble. Even if you have equity in your home, you couldn’t take out a loan to pay off the debt. So we would go after their bank accounts or wages. It really is a vicious circle.
We’re not done yet…and for now for the last trick. Not only could I take the money from your bank, and put a lien on your home. I could put a tax levy on your credit. A tax levy will cripple your ability to get a loan for anything, and can cause you to loose your job in some fields. I would hear people beg to have that lien lifted because they would get fired. I would tell them if they wanted the lien off of their credit they needed to pay the debt. And that’s the rub; a levy on your credit only comes off after you’ve paid the debt in full!
What can I do Hitman? Unlike some of the IRS’s other collection actions there isn’t much you can do with liens and levies until you pay that debt; or the IRS gets it out of you. Don’t make the common mistake of so many tax debtors. Now that you know what will happen, don’t wait for that third letter
Settle Your IRS Tax Debt for Pennies on the Dollar
I was working with a client recently concerning his tax debt of $20,000. He said he had talked to another company and they had guaranteed they could settle his debt for pennies on the dollar. This client had an annual income of $75,000 and a 401k with $30,000. He wasn’t happy when I told him that I was sorry to tell him but the IRS would not approve him for a settlement, or an Offer in Compromise as it’s called.
In fact when I was a Hitman with the IRS, if I saw you apply for an Offer with a $30,000 401k, the rest of the agents and I would have gotten a really good laugh. Then we would have put a lien on your bank account and taken the money out of that. Uncle Sam doesn’t care if your kids go to college.
I’ve seen those commercials on the TV late at night that say you can settle your IRS debt for pennies on the dollar, but they’re not giving you the whole story. And this client had already spoken with another company that promised they could get his debt settled for $4,000 and they were only going to charge him $4,000 more to negotiate it. .
You need to ask one question of yourself before you consider an Offer in Compromise. Can I afford to pay the tax debt and still afford to live my lifestyle? If you answer yes, then you do not qualify, no matter what anyone might tell you. The specific criterion is listed below.
· You have to prove to the IRS that you will never be able to pay back the entire tax debt, or prove that paying off your debt would create “undue hardship”. Undue hardship doesn’t mean going without cable TV. It means not being able to afford groceries. When you deal with the IRS you are guilty until proven innocent.
· You have to commit to what is called Full Financial Disclosure. This is a thorough, and I mean bend over and cough thorough, income and lifestyle analysis. The IRS gets to investigate every tiny detail of you life.
· Only 2% of all Offers in Compromise are successful.
· If the Offer in Compromise is accepted you have to enter into a five year contract with the IRS. You have to file all returns on time and pay any tax debt you may incur during the five year period. Failure to live up to the terms of the contract will result in the entire debt being reinstated and you’ll have to owe the original amount plus any additional interest and penalties.
If you’re serious about trying to get an Offer in Compromise to take care of your IRS debt you should always check with the Better Business Bureau before you give any company your hard earned money. Also beware of anyone offering a “guarantee.” You can go to http://www.irs.gov/ to get specific information.
And what happened with that client? He went with that other company looking for the pot of gold. I wish him the best of luck, and will probably talk to him next year when his debt has ballooned.
Now you have the smoking gun…Use it!
I’m Richard Close and I was a “Hitman” for the IRS. I took out anyone who owed the IRS money as my father had before me. Now I help thousands of Americans beat Uncle Sam and save thousands of dollars. Tax problems? Contact me and get free tips and techniques to deal with wage and bank seizures and slash tax debt: email me at IRS-Hitman@taxdefensenetwork.com or call 1-888-248-9058. Visit me http://irs-hitman.blogspot.com or www.taxdefensenetwork.com
In fact when I was a Hitman with the IRS, if I saw you apply for an Offer with a $30,000 401k, the rest of the agents and I would have gotten a really good laugh. Then we would have put a lien on your bank account and taken the money out of that. Uncle Sam doesn’t care if your kids go to college.
I’ve seen those commercials on the TV late at night that say you can settle your IRS debt for pennies on the dollar, but they’re not giving you the whole story. And this client had already spoken with another company that promised they could get his debt settled for $4,000 and they were only going to charge him $4,000 more to negotiate it. .
You need to ask one question of yourself before you consider an Offer in Compromise. Can I afford to pay the tax debt and still afford to live my lifestyle? If you answer yes, then you do not qualify, no matter what anyone might tell you. The specific criterion is listed below.
· You have to prove to the IRS that you will never be able to pay back the entire tax debt, or prove that paying off your debt would create “undue hardship”. Undue hardship doesn’t mean going without cable TV. It means not being able to afford groceries. When you deal with the IRS you are guilty until proven innocent.
· You have to commit to what is called Full Financial Disclosure. This is a thorough, and I mean bend over and cough thorough, income and lifestyle analysis. The IRS gets to investigate every tiny detail of you life.
· Only 2% of all Offers in Compromise are successful.
· If the Offer in Compromise is accepted you have to enter into a five year contract with the IRS. You have to file all returns on time and pay any tax debt you may incur during the five year period. Failure to live up to the terms of the contract will result in the entire debt being reinstated and you’ll have to owe the original amount plus any additional interest and penalties.
If you’re serious about trying to get an Offer in Compromise to take care of your IRS debt you should always check with the Better Business Bureau before you give any company your hard earned money. Also beware of anyone offering a “guarantee.” You can go to http://www.irs.gov/ to get specific information.
And what happened with that client? He went with that other company looking for the pot of gold. I wish him the best of luck, and will probably talk to him next year when his debt has ballooned.
Now you have the smoking gun…Use it!
I’m Richard Close and I was a “Hitman” for the IRS. I took out anyone who owed the IRS money as my father had before me. Now I help thousands of Americans beat Uncle Sam and save thousands of dollars. Tax problems? Contact me and get free tips and techniques to deal with wage and bank seizures and slash tax debt: email me at IRS-Hitman@taxdefensenetwork.com or call 1-888-248-9058. Visit me http://irs-hitman.blogspot.com or www.taxdefensenetwork.com
The IRS-Hitman Takes Aim at the Fair Tax
There has been a growing movement toward tax reform called the Fair Tax. I’m sure you’ve heard that word before and heard at least one or two of the potential Presidential candidates talking about it.
What is the fair tax exactly? In a nutshell the Fair Tax is an elimination of the current income tax system and replaces it with taxation based solely on sales tax. Proponents of the Fair Tax state that all of the taxes normally taken out of your paycheck will no longer be removed leaving you with the actual amount of money you earned. There wouldn’t be any additional taxes taken out for overtime or bonuses, which they say will reward hard work rather than penalize it.
So how can the government work on sales tax alone? Well, there would be a federal sales tax of around 23% which is roughly equivalent to what you currently have taken out of your paycheck each week in federal income taxes. The idea is that the Fair Tax rewards those who work hard and save money.
Proponents also state that the Fair Tax will be far simpler than the current IRS tax code. No one would have to fill out income tax returns at the end of the year.
It doesn’t sound too bad, right? Well, the IRS-Hitman has a few questions of his own, and I didn’t find any answers out there.
The fair tax is designed to be used at the federal level right? But I haven’t found any evidence about how it works with the states. States have their own individual sales and income taxes.
Couldn’t this actually be a detriment to consumers, and especially the middle class? Because now you have to pay a 23% federal sales tax, plus state/ local sales tax, plus possible state income tax.
Additionally what happens when consumers do spend less? Wouldn’t there end up being a tax deficit. Proponents say that under the fair tax the IRS wouldn’t be needed and the money used for the IRS could be put back into the hands of consumers.
How about small businesses? Higher sales tax means they have to payback the government that much more money. But ideally they wouldn’t have to pay 941 payroll taxes either.
On paper the fair tax seems like a good idea, but Communism looks like a good idea on paper too. The IRS-Hitman wants to know your opinion, and some answers to my questions. For more information you can visit http://www.fairtax.org/
What is the fair tax exactly? In a nutshell the Fair Tax is an elimination of the current income tax system and replaces it with taxation based solely on sales tax. Proponents of the Fair Tax state that all of the taxes normally taken out of your paycheck will no longer be removed leaving you with the actual amount of money you earned. There wouldn’t be any additional taxes taken out for overtime or bonuses, which they say will reward hard work rather than penalize it.
So how can the government work on sales tax alone? Well, there would be a federal sales tax of around 23% which is roughly equivalent to what you currently have taken out of your paycheck each week in federal income taxes. The idea is that the Fair Tax rewards those who work hard and save money.
Proponents also state that the Fair Tax will be far simpler than the current IRS tax code. No one would have to fill out income tax returns at the end of the year.
It doesn’t sound too bad, right? Well, the IRS-Hitman has a few questions of his own, and I didn’t find any answers out there.
The fair tax is designed to be used at the federal level right? But I haven’t found any evidence about how it works with the states. States have their own individual sales and income taxes.
Couldn’t this actually be a detriment to consumers, and especially the middle class? Because now you have to pay a 23% federal sales tax, plus state/ local sales tax, plus possible state income tax.
Additionally what happens when consumers do spend less? Wouldn’t there end up being a tax deficit. Proponents say that under the fair tax the IRS wouldn’t be needed and the money used for the IRS could be put back into the hands of consumers.
How about small businesses? Higher sales tax means they have to payback the government that much more money. But ideally they wouldn’t have to pay 941 payroll taxes either.
On paper the fair tax seems like a good idea, but Communism looks like a good idea on paper too. The IRS-Hitman wants to know your opinion, and some answers to my questions. For more information you can visit http://www.fairtax.org/
Labels:
Business Tax,
Small Business,
State Tax
IRS Wage Garnishment: Hitting Below the Belt
Here’s the Rub: Payday is the day of the week that everyone looks forward to. It’s a shame that when someone owes the IRS money the day that you’re looking forward to, becomes a day of dread. A wage garnishment is one of the dirtiest tricks in an IRS-Hitman’s arsenal and I used it more times than I can count to enforce a collection “action”.
It’s My Money! I’m sure when you see half of your paycheck disappear you’re angry that the IRS thinks they can take your money. When you owe back taxes, your money becomes Uncle Sam’s money, and it was my job to make sure my Uncle’s pockets were full.
How could I do that to someone? Especially when I knew that the target couldn’t buy their kids new clothes for school, heck the target couldn’t even buy their kids school supplies. The IRS only sees a debtor as a target and if I didn’t take the “hit” someone else would.
Even if you don’t get a paycheck, if you get social security or disability the IRS can garnish that too. In fact the IRS can garnish up to 15% of social security. I would always feel a twinge of guilt taking money from someone on a fixed income.
Save Your Bacon. First of all you shouldn’t have let the wage garnishment happen. The IRS gives any target ample warning before we would line up our sights. But now you’re getting garnished and you need some kind of relief. I’ll tell you how to save your bacon.
· Enter into a payment plan with the IRS. With an IRS payment plan you pay a monthly amount to the IRS. As long as you pay this amount each month on time your wage garnishment will be lifted. Here’s the condition though, the IRS determines what you’re payment will be. This can be a burden, but the alternative is still much worse.
· Negotiate for a settlement with the IRS on your own or with the help of a tax professional. While negotiating with the IRS, collection activities are put on hold until a resolution can be reached. Once your settlement has been accepted or denied you’re back in the danger zone, but as long as you live up to the terms of the contract you should be fine. However the IRS is always waiting for you to make a mistake again.
Take Action! I can’t stress enough how important it is to take action as soon as you know there is money owed to the IRS. The number one reason I had to target someone for a wage garnishment was because they put off doing anything about their debt.
Now you have the smoking gun...Use it!
I’m Richard Close and I was a “Hitman” for the IRS. I was a second generation revenue officer. I took out anyone who owed the IRS money as my father had before me. Now I help thousands of Americans beat Uncle Sam and save thousands of dollars. Tax problems? Contact me and get free tips and techniques to deal with wage and bank seizures and slash tax debt: email me at IRS-Hitman@taxdefensenetwork.com or call 1-888-248-9058. Visit me irs-hitman.blogspot.com or www.taxdefensenetwork.com
It’s My Money! I’m sure when you see half of your paycheck disappear you’re angry that the IRS thinks they can take your money. When you owe back taxes, your money becomes Uncle Sam’s money, and it was my job to make sure my Uncle’s pockets were full.
How could I do that to someone? Especially when I knew that the target couldn’t buy their kids new clothes for school, heck the target couldn’t even buy their kids school supplies. The IRS only sees a debtor as a target and if I didn’t take the “hit” someone else would.
Even if you don’t get a paycheck, if you get social security or disability the IRS can garnish that too. In fact the IRS can garnish up to 15% of social security. I would always feel a twinge of guilt taking money from someone on a fixed income.
Save Your Bacon. First of all you shouldn’t have let the wage garnishment happen. The IRS gives any target ample warning before we would line up our sights. But now you’re getting garnished and you need some kind of relief. I’ll tell you how to save your bacon.
· Enter into a payment plan with the IRS. With an IRS payment plan you pay a monthly amount to the IRS. As long as you pay this amount each month on time your wage garnishment will be lifted. Here’s the condition though, the IRS determines what you’re payment will be. This can be a burden, but the alternative is still much worse.
· Negotiate for a settlement with the IRS on your own or with the help of a tax professional. While negotiating with the IRS, collection activities are put on hold until a resolution can be reached. Once your settlement has been accepted or denied you’re back in the danger zone, but as long as you live up to the terms of the contract you should be fine. However the IRS is always waiting for you to make a mistake again.
Take Action! I can’t stress enough how important it is to take action as soon as you know there is money owed to the IRS. The number one reason I had to target someone for a wage garnishment was because they put off doing anything about their debt.
Now you have the smoking gun...Use it!
I’m Richard Close and I was a “Hitman” for the IRS. I was a second generation revenue officer. I took out anyone who owed the IRS money as my father had before me. Now I help thousands of Americans beat Uncle Sam and save thousands of dollars. Tax problems? Contact me and get free tips and techniques to deal with wage and bank seizures and slash tax debt: email me at IRS-Hitman@taxdefensenetwork.com or call 1-888-248-9058. Visit me irs-hitman.blogspot.com or www.taxdefensenetwork.com
Help! I Can’t Pay My IRS Tax Debt
Will the IRS help me? I can tell you from experience that many of you who owe money to Uncle Sam’s collection agency have no way to pay off the debt in full.
What can you do to pay the IRS? Well collection agencies accept payment installment plans, and the IRS is the biggest collection agency in the world, right? The IRS does allow you to setup a payment plan for your debt, but there’s a few things I need to tell you first.
What’s a Streamline? A payment plan with the IRS or a Streamline Payment Agreement can provide assistance, but as with anything that the IRS does, there is a catch. In fact there are several catches.
Since you don’t have much of a choice except to enter into a payment plan with the IRS, there are a few things that you need to expect:
What’s the minimum amount you can pay? Unfortunately it doesn’t work that way. The IRS determines how much you’re going to pay. And how we determine what you will pay is not to your benefit. You will have to commit to the IRS getting to really know you; this is called Full Financial Disclosure. They get to know all of your business and I do mean every little detail. Your entire life is an open book for them. Not just how much money you have, but how you live. Based on that they determine what your “allowable” expenses are for the month, and the rest goes to them.
What are your allowable expenses? They’re not what you think. For example, the IRS doesn’t consider credit card payments as “allowable” they’re luxuries and the IRS won’t take them into account, no matter how much you owe.
If you believe that some of the money you spend is allowable then you have to prove to the IRS that it is necessary. People have the misconception when dealing with us that the burden of proof wasn’t on them. As far as we were concerned, everyone was guilty until proven innocent.
The interest and penalties on your debt continue to get added on, to the tune of 25% in a given year. Depending on the debt owed, and the amount of your payments, you may not even see that debt go down.
If you start making more money, the IRS will know about it and will increase your payment amounts. Your raise that you worked hard for goes straight to Uncle Sam’s pocket.
The IRS wants you to default on your payment plan. The IRS doesn’t want you to be able to keep up your payment plan. I know, because we used to wait in the wings for someone to miss a payment. Why? Because once you default we swoop in like vultures and start the hardcore collection actions. And since you had to tell the IRS all of your financial information, we would know about everything that could be seized, and where you kept it.
It’s the only choice. A payment plan is the only solution for thousands of people in tax debt. It seems almost impossible to come out on top of the payments, but the alternatives such as wage garnishment are much worse. .
Now you have the smoking gun…Use it!
I’m Richard Close and I was a “Hitman” for the IRS. I was a second generation revenue officer. I took out anyone who owed the IRS money as my father had before me. Now I help thousands of Americans beat Uncle Sam and save thousands of dollars. Tax problems? Contact me and get free tips and techniques to deal with wage and bank seizures and slash tax debt: email me at IRS-Hitman@taxdefensenetwork.com or call 1-888-248-9058. Visit me irs-hitman.blogspot.com or www.taxdefensenetwork.com
What can you do to pay the IRS? Well collection agencies accept payment installment plans, and the IRS is the biggest collection agency in the world, right? The IRS does allow you to setup a payment plan for your debt, but there’s a few things I need to tell you first.
What’s a Streamline? A payment plan with the IRS or a Streamline Payment Agreement can provide assistance, but as with anything that the IRS does, there is a catch. In fact there are several catches.
Since you don’t have much of a choice except to enter into a payment plan with the IRS, there are a few things that you need to expect:
What’s the minimum amount you can pay? Unfortunately it doesn’t work that way. The IRS determines how much you’re going to pay. And how we determine what you will pay is not to your benefit. You will have to commit to the IRS getting to really know you; this is called Full Financial Disclosure. They get to know all of your business and I do mean every little detail. Your entire life is an open book for them. Not just how much money you have, but how you live. Based on that they determine what your “allowable” expenses are for the month, and the rest goes to them.
What are your allowable expenses? They’re not what you think. For example, the IRS doesn’t consider credit card payments as “allowable” they’re luxuries and the IRS won’t take them into account, no matter how much you owe.
If you believe that some of the money you spend is allowable then you have to prove to the IRS that it is necessary. People have the misconception when dealing with us that the burden of proof wasn’t on them. As far as we were concerned, everyone was guilty until proven innocent.
The interest and penalties on your debt continue to get added on, to the tune of 25% in a given year. Depending on the debt owed, and the amount of your payments, you may not even see that debt go down.
If you start making more money, the IRS will know about it and will increase your payment amounts. Your raise that you worked hard for goes straight to Uncle Sam’s pocket.
The IRS wants you to default on your payment plan. The IRS doesn’t want you to be able to keep up your payment plan. I know, because we used to wait in the wings for someone to miss a payment. Why? Because once you default we swoop in like vultures and start the hardcore collection actions. And since you had to tell the IRS all of your financial information, we would know about everything that could be seized, and where you kept it.
It’s the only choice. A payment plan is the only solution for thousands of people in tax debt. It seems almost impossible to come out on top of the payments, but the alternatives such as wage garnishment are much worse. .
Now you have the smoking gun…Use it!
I’m Richard Close and I was a “Hitman” for the IRS. I was a second generation revenue officer. I took out anyone who owed the IRS money as my father had before me. Now I help thousands of Americans beat Uncle Sam and save thousands of dollars. Tax problems? Contact me and get free tips and techniques to deal with wage and bank seizures and slash tax debt: email me at IRS-Hitman@taxdefensenetwork.com or call 1-888-248-9058. Visit me irs-hitman.blogspot.com or www.taxdefensenetwork.com
Avoiding IRS Tax Debt: Don’t Depend on Those Kids as Dependants
What’s the most common cause of tax debt? One of the most common causes of tax debt is from people claiming dependants for Earned Income Credit. Mostly these are people with lower income who are just looking for a little extra to get by. A lot of these people get bad advice from friends, family, or tax preparation companies. Or they’re people who took care of a child that wasn’t theirs out of the goodness in their heart. Even as an IRS agent I felt bad for these people. But they made the mistake of listening to bad advice.
If it’s too good to be true…This small error in judgment can result in a tax debt of several thousand dollars that you can’t afford. A good rule of thumb when filing your taxes is that if you have any doubts as to whether you can claim a deduction, you probably shouldn’t. We always watched for Earned Income Credit claims because they were easy money. Do the research to make sure you know the requirements and see if you actually meet them.
Who can I claim as a dependant? The best resource tool for you is the IRS itself. You can find the rules for Earned Income Credit spelled out in a simple manner by going to www.irs.gov/eitc.
Here is a brief list of the requirements for Earned Income Credit in brief that can be helpful in finding out if you qualify or not.
If you’re married, living together, and the child is the biological offspring of both parents then there shouldn’t be any problem with receiving earned income credit.
To claim a child, that child must meet the relationship, age, and residency tests.
1. Relationship: Son, daughter, stepchild, eligible foster child, or a descendant of any of them (for example, your grandchild), or brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them (for example, your niece or nephew).
2. Age: The child must be under the age of 19, or under the age of 26 and a full-time student, or permanantly and totally disabled regardless of age.
3. Residency: The child must have been in your care at least six months of the tax year.
Only one person can claim the child.
If your situation doesn’t meet these basic requirements then claiming a child for Earned Income Credit would only result in a bad situation for you.
Now you have the smoking gun...Use it!
I’m Richard Close and I was a “HitMan” for the IRS. I was a second generation revenue officer. I took out anyone who owed the IRS money as my father had before me. Now I help thousands of Americans beat Uncle Sam and save thousands of dollars. Tax problems? Contact me and get free tips and techniques to deal with wage and bank seizures and slash tax debt: email me at IRS-Hitman@taxdefensenetwork.com or call 1-888-248-9058. Visit me irs-blogspot.com or http://www.taxdefensenetwork.com/
Now you have the smoking gun…Use it!
Labels:
Children and Tax Debt,
Tax Tips,
TDN Updates
Filing Your Tax Return: Rapid Refund or Rapid Trouble
Who can you trust? It’s tax time again…and if you have a lot of deductions or you have investments and property it can seem very hard to do your own taxes. There are numerous companies both national and local that will offer to file your taxes for you, for a small fee.
But should you use one of these companies, or try to file on your own? For the sake of argument let’s say you want to have someone file your taxes for you. Depending on the company, you may be walking into a trap. That is why the first thing you should do is check out the company with the Better Business Bureau.
Are they qualified? Many of these tax prep company’s employees are not tax experts. They are not enrolled agents. They’ve had a three week training course at best. When you go to them they’re going to make all kinds of promises to get you more money than you’ve ever gotten back from Uncle Sam. Be very cautious at this point, “easy money” always has a catch.
Prepare, prepare, prepare…Make sure you have all of your paperwork and do all of the math yourself first. This will give you a frame of reference for when that company does your taxes. Also if they recommend a deduction that you’re not sure about, you probably shouldn’t take it. Don’t be seduced by the promise of a big payoff, ask the agent handling your taxes to prove the deduction is legitimate. If he/ she can’t, ask for a manager. It’s your money and you need to protect it.
They saw you coming a mile away. Do not be taken in by a “rapid refund”. If your taxes are filed electronically you’ll get the money in about two weeks. A rapid refund seems great: the tax company pays you right away. But wait, this is actually a loan and your planned tax return is the collateral. If you get audited, or your return denied, you still owe the tax prep company and you don’t have the tax return or worse, you owe the IRS too.
Statistics: For the tax year 2006 nearly $650 million was paid out to these companies for these rapid refund loans. That’s $650 million that people filing their taxes could have used.
I’m not saying all of these companies are crooked. Many of them can help you if you feel like you’re drowning in paperwork and don’t know which tax form to use. Just remember to be careful because you don’t want an IRS Wiseguy showing up at your door.
Now you have the smoking gun…Use it!
I’m Richard Close and I was a “Hitman” for the IRS. I was a second generation revenue officer. I took out anyone who owed the IRS money as my father had before me. Now I help thousands of Americans beat Uncle Sam and save thousands of dollars. Tax problems? Contact me and get free tips and techniques to deal with wage and bank seizures and slash tax debt: email me at IRS-Hitman@taxdefensenetwork.com or call 1-888-248-9058. Visit me irs-hitman.blogspot.com or http://www.taxdefensenetwork.com/
But should you use one of these companies, or try to file on your own? For the sake of argument let’s say you want to have someone file your taxes for you. Depending on the company, you may be walking into a trap. That is why the first thing you should do is check out the company with the Better Business Bureau.
Are they qualified? Many of these tax prep company’s employees are not tax experts. They are not enrolled agents. They’ve had a three week training course at best. When you go to them they’re going to make all kinds of promises to get you more money than you’ve ever gotten back from Uncle Sam. Be very cautious at this point, “easy money” always has a catch.
Prepare, prepare, prepare…Make sure you have all of your paperwork and do all of the math yourself first. This will give you a frame of reference for when that company does your taxes. Also if they recommend a deduction that you’re not sure about, you probably shouldn’t take it. Don’t be seduced by the promise of a big payoff, ask the agent handling your taxes to prove the deduction is legitimate. If he/ she can’t, ask for a manager. It’s your money and you need to protect it.
They saw you coming a mile away. Do not be taken in by a “rapid refund”. If your taxes are filed electronically you’ll get the money in about two weeks. A rapid refund seems great: the tax company pays you right away. But wait, this is actually a loan and your planned tax return is the collateral. If you get audited, or your return denied, you still owe the tax prep company and you don’t have the tax return or worse, you owe the IRS too.
Statistics: For the tax year 2006 nearly $650 million was paid out to these companies for these rapid refund loans. That’s $650 million that people filing their taxes could have used.
I’m not saying all of these companies are crooked. Many of them can help you if you feel like you’re drowning in paperwork and don’t know which tax form to use. Just remember to be careful because you don’t want an IRS Wiseguy showing up at your door.
Now you have the smoking gun…Use it!
I’m Richard Close and I was a “Hitman” for the IRS. I was a second generation revenue officer. I took out anyone who owed the IRS money as my father had before me. Now I help thousands of Americans beat Uncle Sam and save thousands of dollars. Tax problems? Contact me and get free tips and techniques to deal with wage and bank seizures and slash tax debt: email me at IRS-Hitman@taxdefensenetwork.com or call 1-888-248-9058. Visit me irs-hitman.blogspot.com or http://www.taxdefensenetwork.com/
Labels:
Business Tax,
Small Business,
Tax Tips,
TDN Updates
Watch Out! The IRS is Coming for You
Ben Franklin said, “There are only two certainties: death and taxes.” I know there are some of you who have been putting off your tax debt. It’s been a while since they sent you a letter, right? You probably think the IRS has forgotten about you and your tax debt, or you’ve gotten lost in the system. Think again, we used to comb the system for people just like you. Because once we found those people they were easy money.
The IRS is gunning for you! This is a new tax year and the IRS ramps up their efforts to track down debtors. Once you file your tax returns a red flag is going to pop up and take my word, the IRS isn’t very fond of debt dodgers. They won’t give the usual warnings and go straight to wage garnishment or seizing your assets.
You can’t hide forever. You may be thinking that you just won’t file your taxes this year and try to continue coasting by under the IRS’s radar. Here’s the deal, you will get caught! The IRS is merciless in their pursuit and here’s what will happen when you get caught. You’ll wish the IRS just broke your legs when you owed money.
· Depending on how long you’ve gone without paying your original debt, you may find that you owe a lot more money to the IRS than you thought you did. During the time you “thought” the IRS wasn’t paying attention to you, interest and penalties were adding up on your debt to the tune of 25% per year. So that $2,000 debt that you originally owed may now be a $10,000 debt. And since you’ve managed to get away without paying so far, the IRS is going to want their money right now…or else!
· If you’ve been avoiding your debt by not filing, not only are you risking jail time, the IRS has probably filed for you with what’s called a Substitute Filing Return. That seems real nice of the IRS to do your “work” for you. Here’s the rub, this return doesn’t take any deductions into account and will result in you owing even more money.
· Just so you know, it isn’t illegal to owe the IRS, but it is illegal to not file your taxes. That’s tax evasion, and that’s how they got Al Capone.
Don’t let the IRS hunt you down. What can you do? If you’re already in debt you can try to negotiate with the IRS or get professional tax help to represent you. But the best thing to do if you find you owe money…is to take care of the situation immediately! Even if you don’t hear from the IRS contact them or get professional help. You don’t want to even think of the alternative.
Now you have the smoking gun…Use it!
I’m Richard Close and I was a “Hitman” for the IRS. I was a second generation revenue officer. I took out anyone who owed the IRS money as my father had before me. Now I help thousands of Americans beat Uncle Sam and save thousands of dollars. Tax problems? Contact me and get free tips and techniques to deal with wage and bank seizures and slash tax debt: email me at IRS-Hitman@taxdefensenetwork.com or call 1-888-248-9058. Visit me irs-hitman.blogspot.com or http://www.taxdefensenetwork.com/
The IRS is gunning for you! This is a new tax year and the IRS ramps up their efforts to track down debtors. Once you file your tax returns a red flag is going to pop up and take my word, the IRS isn’t very fond of debt dodgers. They won’t give the usual warnings and go straight to wage garnishment or seizing your assets.
You can’t hide forever. You may be thinking that you just won’t file your taxes this year and try to continue coasting by under the IRS’s radar. Here’s the deal, you will get caught! The IRS is merciless in their pursuit and here’s what will happen when you get caught. You’ll wish the IRS just broke your legs when you owed money.
· Depending on how long you’ve gone without paying your original debt, you may find that you owe a lot more money to the IRS than you thought you did. During the time you “thought” the IRS wasn’t paying attention to you, interest and penalties were adding up on your debt to the tune of 25% per year. So that $2,000 debt that you originally owed may now be a $10,000 debt. And since you’ve managed to get away without paying so far, the IRS is going to want their money right now…or else!
· If you’ve been avoiding your debt by not filing, not only are you risking jail time, the IRS has probably filed for you with what’s called a Substitute Filing Return. That seems real nice of the IRS to do your “work” for you. Here’s the rub, this return doesn’t take any deductions into account and will result in you owing even more money.
· Just so you know, it isn’t illegal to owe the IRS, but it is illegal to not file your taxes. That’s tax evasion, and that’s how they got Al Capone.
Don’t let the IRS hunt you down. What can you do? If you’re already in debt you can try to negotiate with the IRS or get professional tax help to represent you. But the best thing to do if you find you owe money…is to take care of the situation immediately! Even if you don’t hear from the IRS contact them or get professional help. You don’t want to even think of the alternative.
Now you have the smoking gun…Use it!
I’m Richard Close and I was a “Hitman” for the IRS. I was a second generation revenue officer. I took out anyone who owed the IRS money as my father had before me. Now I help thousands of Americans beat Uncle Sam and save thousands of dollars. Tax problems? Contact me and get free tips and techniques to deal with wage and bank seizures and slash tax debt: email me at IRS-Hitman@taxdefensenetwork.com or call 1-888-248-9058. Visit me irs-hitman.blogspot.com or http://www.taxdefensenetwork.com/
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