Happy Halloween!

Ha-Ha-Halloween: The doorbell rings, and a man answers it. Here stands this plain but well dressed boy, saying, "Trick or Treat!" The man asks the child what he is dressed up like for Halloween. The boy replies, "I'm an IRS agent." Then he takes 40 percent of the man's candy, leaves, and doesn't say thank you.

Trick or Treat: Today, I take great pride in wearing the hat. Most everyone knows that there are few things more frightening than an IRS Revenue Officer. I’m thankful that I am no longer on that side of the fence. I am helping people more than ever before. This has been a great month for Taxpayers and I can’t wait for months to come.

Special Thanks: I want to take the time to point out my fellow Blogger, The Wandering Tax Pro. His post today has some great reference for end of the year tax-planning. Check out his posting here.

Keep it Safe: I know my kids are going to be hyped on candy this weekend. I’m sure all of you parents out there are in the same boat. So just remember to be safe this holiday. Here are some Halloween Safety Tips, just in case there are some things you forgot or didn't already know. Everyone stay safe and have a great holiday. I’ll see you all Monday!

Now you have the Smoking Gun…Use It!

Right This Way

Credit Check! Credit has been a huge issue with the way the economy has been lately. With so many financial institutions going under, and less and less companies willing to give out credit, it’s getting harder and harder to make it by. These days, most everything is measured on credit. But where can you get the advice needed to manage these credit cards?

General Advice: Like my previous post, I want to take the time to direct you to some blogs concerning credit card information, advice, and service. Some blogs give a personal touch, like Blogging Away Debt. In this blog, a woman writes of how she and her family maintain their finances. Some other sites like Credit Karma, Master Your Card, Credit Card Expert, and Creditor Web offer reliable information and advice on Credit Cards.

Wide Variety: Some blogs offer a wide variety of knowledge. Blogs such as, Plastic Rap and Ask Mr. Credit Card cover more than just Credit Cards. They offer information on several types of cards. And Credit Slips offers an intellectual discussion on credit and bankruptcy. Other sites like Find Credit Cards are large collections of news articles and stories about credit cards, while blogs like Credit Bloggers actually offer solutions to credit issues.

Read Up! Using these sites as a reference can save you tons of trouble in the future. Studies have shown that more than 50% of Taxpayers that are behind in their taxes are also having issues with credit card debt. So don’t be afraid to seek help in that area if you having it.

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A Ray of Hope...and Tons of Links!

It's Over 9000! The Dow Jones Skyrocketed yesterday, taking it back over the 9000 point mark. The price of gas is lower than we've seen in years, and in some places it's as low as $2.09 a gallon. That being said, it looks as if the worst is over. But as always, the IRS doesn't forget. They're still ready to do whatever it takes to get their money.

Education! I've always said that education is the most important factor. But I want you to know that I'm not the only tax blogger out there. In fact, there are several bloggers like me. People like Taxgirl, The Wandering Tax Pro, and Tax Guru, take time to make sure the common taxpayer gets the questions that they have answered.

But wait...there's more! There are also some tax professionals who take time out of what they are already doing to inform American citizens about tax law. People like Darrin Mish and Mike Habib update their blogs daily so that you can stay informed. I'm thankful to know about these sites. There are also a few more I'd like to tell you about.

State Specialists and General Tax Info: Some bloggers are specialized or based from their specific state. This can make them a little harder to find, but they should be read nonetheless. These bloggers include Mitchell Port and Kathy Howell.

There are also general tax and finance blogs like Eye on the IRS, Tax Prof Blog, and Tick Marks.

Use Them! I hope between my site, and the ones I've listen above, you can find any information that you need when it comes to taxes. Remember, the best weapon you have against the IRS is knowledge.

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Paying Your Back Taxes: Taking Care of Your Life after the Military

You served your Country…but now you’re ready to go back to civilian life. You get to spend time with your family, you don’t have to up and move every few months, and the IRS wants that debt you owe them…now!

While you were in…Military personnel have the benefit of being able to defer tax debts while on active duty in a combat or hazardous zone. The tax debt will still be there, but during the time of your deployment the IRS couldn’t take collection actions against you or your family, and you didn’t have to worry about the tax debt. Not only that, but interest and penalties didn’t accrue, and your term of service did not extend the 10 year Statute of Limitation the IRS has to collect on your debt.

The IRS has been waiting…But now that you’re out of the military and the IRS is demanding that tax debt money what are you going to do? Once you return to the real world and are no longer active duty the IRS gives you 180 days to pay back the debt before they start sending letter, taking any collection actions, or adding on interest and penalties.

But what if you can’t pay back the debt in the 180 days given? After all you’re trying to get a new job in the civilian market and the last thing you need is to have the IRS garnish your wages.

What are some of the ways that you can handle your IRS tax debt?

• First of all make sure you don’t have any unfiled tax years. If you have unfiled tax returns then file them as soon as you can because that could lower your debt significantly.
• While you were active duty the IRS wouldn’t have filed your returns for you with what is called substitute filing, but if you don’t file your back taxes immediately then the IRS will go ahead and take care of your filing, and that will only cause your debt to increase.
• After you’ve taken care of all your tax returns you have a clearer picture of your IRS tax debt. If you took care of that within the 180 day grace period even better because that means a lower amount for the IRS to tack interest and penalties onto later.

You can get a short list of available options to IRS debt in the article, “Tax Problem Help: How to Give Yourself a Fighting Chance.”

You’ve fought for your Country…you’ve sacrificed time with your loved ones and you’ve seen things that will haunt you for the rest of your life. You should at least not have to worry about the IRS.

Today's Question: Are you still waiting on your stimulus check? And if so...have you contacted the IRS about it yet?

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Getting into compliance with your tax returns

I haven’t filed my taxes for a couple of years and the IRS says I owe them money. Do I have to file my missing years before the IRS will work with me on my debt?

Yes you do have to file any tax returns from past years. You have to be in compliance with your tax filings before the IRS will work with you at all on a tax debt. The plus side is that you only have to file missing returns for the last 7 years. And if you file your returns you may see your tax debt reduced.

I want to file my missing years, but I can’t find any of my tax records for those years. What can I do?

If you don’t have your records you’re in a bit of a pickle. You can get your W-2 information from the IRS. But any itemized deductions or credits you would have been entitled to you won’t be able to claim if you don’t have evidence.

If you own a small business and you’ve lost your records you could be in serious trouble and likely have to owe the IRS additional money once you’ve filed your back taxes.

If I file my back taxes and there’s a refund do I get it?

If you’re filing back taxes you can only get refunds for taxes from the last 2 years. Anything older, regardless of whether you would have gotten a refund or not don’t count.

What can I do if the IRS says I owe money, but I’m sure I don’t?

You can file an amended return with the IRS. You must have all documents that prove you shouldn’t owe. Because an amended return is essentially an audit of the IRS the burden of proof is on you! If you can’t prove to the IRS that you shouldn’t owe the money the debt stands.

Will I go to jail if I don’t file my taxes?

Not paying your taxes is a crime and you could serve jail time, or be fined by a Federal Court. However you shouldn’t start sweating. The IRS generally doesn’t send you to jail unless you owe them a large sum, usually more than $100,000.

Today's Question: Do you think gas prices will shoot back up after the election, or do you think they're here to stay?

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Small Business and 941 Payroll Taxes: Paying the Devil his Due

Has your small business taken off? Are you finding that you need to hire more and more employees to keep up? This is an exciting time for you. It’s also an exciting time for the IRS because more money and more employees that need paychecks mean more chances for you to screw up with your taxes.

Let me tell you something…when I was an IRS-Hitman we used to love small and independent businesses. Why you ask? Because if one of these businesses made even the slightest clerical error on their taxes it could balloon into a massive debt and we would get to seize the business.

They’re circling…IRS agents are like vultures, and your business is a dying animal in

the desert. Sooner or later they’re going to get you.

Get out from under the IRS…So what can you do to avoid the IRS taking everything it’s taken you years to build? Pay them the right amount of payroll taxes and pay them on time. Doesn’t that sound simple? Is anything with the IRS ever simple though?

Do you need help? The IRS-Hitman does have a couple of suggestions for dealing with the IRS, and keeping them out of your business.

Check the numbers…Make sure the right amount of taxes is being taken out based on your employee’s W-4 form. Taking out too much or too little can not only screw up your 941 quarterly filing, but it can also screw up your employee’s tax return.

No later than…Make sure you pay the IRS the payroll taxes on time every three months.

No exceptions! Do not put it off until the next quarter because you’re in a financial bind at the moment and need to use that payroll money for your business. Remember that isn’t your money, that’s Uncle Sam’s; and he’s worse than the mob when it comes to collecting on a debt.

Be a success! If you start to get larger and larger numbers of employees and your business is growing you should get an accountant or CPA to handle your books. Once your little business gets bigger there are so many tax forms and different filings that have to be done there’s little chance of you being able to do it. Besides you need your time to focus on running your successful business. Also if you do happen to get in trouble with the IRS you have all the tax records in nice, neat, books to make sure an IRS audit doesn’t turn into a serious disaster.

Now you have the smoking gun…Use it!

Think the Country’s Deficit is high? Check out Sarah Palin’s Wardrobe Bill

A Girl’s Best Friend: The Republican National Committee has recently reported that they spent $150,000 dollars to clothe and accessorize Governor Palin. This includes $75,000 at Neiman Marcus and $49,000 dollars at Saks Fifth Avenue. The Committee has also reported to have spent nearly $5,000 dollars in hair and make-up, since Senator John McCain selected Sarah in late August.

But Wait…There’s More: Palin’s spokeswoman Tracey Schmitt said that “it has always been the intent that the clothing go to a charitable purpose after the campaign.” Not to mention that as of September 30^th, the RNC has reported to have $77 Million dollars, while the DNC reported to have $27.4 Million dollars left for their campaigns.

It’s Ridiculous! If you ask me, as a former Revenue Officer and an American Taxpayer, this seems a little ludicrous. Honestly, party affiliations aside, this just seems a little unfair. I don’t even earn over $100,000 dollars a year, let alone spend it on clothes! And I’ll probably never make anywhere near $27.4 or $77 Million dollars. This type of spending makes us wonder where our money is really going.

Article: Check out the article I’ve included below about 941 Payroll taxes and Small Business. I hope you find it helpful.

Today’s Question: What are your feelings on campaign spending? If you could change it how would you do it?

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2009: The Year of Change

Two Weeks! Two Weeks! With less than 15 days to go in this years’ election, the polls seem to be getting less one-sided. The voters seemed to be about even and just like any other year, we won’t know for sure until the 4^th of November. But the biggest question still remains; what does this mean for the economy? And even more importantly, what does this mean for taxes?

Tax This! Regardless of which candidate is elected, 2009 is going to be a year of change. Of course I’m mostly talking about the IRS. From simple things like forms, all the way to policy changes, things are drastically going to change. And if I know anything about the IRS, I’m sure they’re not going to put up with what they have been putting up with.

Bring the Pain! As you should know, the IRS can now legally severely penalize non-filers. If you don’t file your taxes, you can be fined up to $50,000 dollars per year not filed. Not to mention, now they can even throw you in jail!

The Up and Up: Make sure you keep up with your taxes. Trust me, I know how much of a pain it can be. But it’s going to be a lot worse if you don’t file. So as these next few months go by, start getting into the tax mindset. Before we know it, it’s going to be April 15^th.

Today’s Question: If you could change one specific thing about the economy, what would it be and why?

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Tax Protesters: Who are these Guys?

Don’t you wish you didn’t have to pay taxes? Well there’s a group of people generally labeled Tax Protesters who do just that. They don’t believe they should pay income tax and don’t. But why do they believe they don’t have to pay taxes? More importantly to you, if you join up will you get to stop paying taxes?

A frame of reference… I can tell you that there hasn’t been a single court ruling supporting these groups. They have been denied again and again in federal courts. So why are they so insistent that they shouldn’t pay their income taxes like the rest of us?

Constitutional calamity… One of their major gripes is that the 16^th Amendment to the Constitution is Unconstitutional. Just so you have a frame a reference the 16^th Amendment which was ratified in 1913 states:

“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”

I’m not a Constitutional lawyer, but that seems pretty cut and dry to me. Tax protestors also have tried to convince courts that wages are not income and therefore shouldn’t be taxed.

An example… Recently action movie star Wesley Snipes was taken in by one of these Tax Protesters and now owes the IRS over $12 million dollars.

When it comes to tax protesters the law is very cut and dry: you must pay your income taxes. There is nothing in the Constitution that makes you exempt no matter how you would like it to be interpreted.

Today's Question: What are your thoughts on "Joe the Plumber" and what do you think he will do to this election?

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Three Weeks Remain

Down, Up, and Down Again: The instability of the Dow Jones has left investors confused, but more importantly overly cautious about the market. Our economic financial situation, as you all know, has not been the easiest of them all. And after the Presidential debate last night, it looks like it’s going to come down to our President to make or break our economy these next four years.

Under Three Dollars? The one good thing about the stock market dropping is that oil has gone down. In fact yesterday it dropped under $75 dollars a barrel, and I was able to fill up for under three dollars. That’s right; at the gas station near my office I was able to fill up for $2.92. I was happily surprised.

Invest in Yourself: Remember, we are all our own best investment. Don’t rely on credit cards or banks to take care of your finances for you. Do your best to save money, and be prepared for the worst. Also if you’re currently in debt, especially with the IRS, do everything in your power to resolve that so you can get back to getting your financial life in proper order.

New E-Book Idea: I hope that all of you are enjoying the E-book. I’ve gotten some pretty good feedback on it. That being the case, I’m going to start working on my next one. This next E-book will be a little more in depth; a little longer. And this time around I’m going to touch base of filing, penalties, the IRS collection project, and much more.

Today’s Question: What are your thoughts on last nights debate? Do you think one opponent really outmatched the other?

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Election Day Nears: New Promises Are Made

In this Corner…Senator John McCain has recently proposed to do away with rules that force seniors to sell stocks from 401Ks or Individual Retirement Accounts (IRAs), and tax withdrawals from those accounts at 10% instead of at varying rates. He’s also pushed his plans to cut capital gains tax in half.

And in this Corner: On the other side of the fence Senator Barak Obama has made promises aimed mostly at middle-class Americans. His proposals promise about $80 Billion dollars in tax cuts. He’s also said quote “Instead of having all of us pay our fair share, we've got over $1 trillion worth of loopholes in the corporate tax code.”

Pick Your Side: Everyone already seems pretty avid about which side they’re on. Meanwhile, the economy has become more unpredictable than the weather and everyone is worried about their fiancés. It seems that if either of these men follows through with their promises, we could be in for a struggle over the next few years.

Educate Yourself: While the next few weeks go by, you need to be reading as much as you can about finances and economics. Spend some time here on a blog, and take a few minutes to read my new eBook. I’m also a member of allexperts.com now so you can ask me questions about tax issues there:

http://allexperts.com/ep/932-105591/Tax-Law-Questions/Richard-Close.htm

Today’s Question: Do you have any pointers on how I can become more of an educational source for you? For instance, is there any particular subject you’d like to see me write more about?

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The Tables May Be Turning

Step by Step: Between the Dow Jones rising over 900 points yesterday, and the U.S. plan to provide $250 Billion dollars to America’s major banks and financial institutions this week, things seem to be looking a little brighter. It is hard to find hope in this storm of panic and struggle, but the light at the end of the tunnel seems to be getting larger.

Don’t Rest Easy: But remember, this doesn’t mean that it’s going to be easy. In fact, it’s going to take tons of work to get our economy back to a comfortable spot, and then even more work to maintain that stability. And keep in mind that when the economy gets back to normal, things like taxes are going to be back in full swing.

Duck and Cover! The IRS is going to use this re-building period as the perfect attack period. They know they’ve got tons to collect, and they’re doing everything they can to catch taxpayers with their pants down. Take it from me; if they can take advantage of you…they will. So don’t let them!

Smart Money: In the meantime, make the most of your money. Don’t drive so aggressively and save a few bucks on gas. Try and cut back on smoking or getting Starbucks every morning. You’d be surprised on how much you can save, just by cutting back on some bad habits.

Today’s Question: What is the number one way you’re going to save money in these next few months?

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IRS Bank Levy- How to Stop it Dead in its Tracks

Silent Strike: Like a skilled assassin- a Bank Levy strikes without notice. One day your debit card will be working fine, the next day your card will be declined while you're buying your groceries. The IRS Bank Levy can be devastating and makes normal day to day living impossible.

Letter after Letter: If you're reading this, you may have received some threatening letters from the IRS about your tax debt. If you receive a letter entitled “Final Notice of Intent to Levy” the IRS is letting you know that they intend to Levy your Bank Account. This means that they are in essence, freezing your account and not allowing you access to it. This is one of the most powerful tools the IRS uses to collect their debt.

Act Now: When the IRS freezes your account, they give you 21 days before they seize all the money out of your account. Take advantage of this small window of time and take what steps it takes to make sure Uncle Sam doesn't keep your money.

Ways To Stop A Bank Levy:

1) Hardship Plan: Send a letter to the IRS with evidence proving that if they Levy your Bank Account you will not be able to meet the standards of basic living.

2) Payment Plan: Negotiate a payment plan with the IRS that will have you paying a monthly amount on your debt. The Bank Levy will be removed as long as you continue to pay monthly and on time.

3) Negotiate a Settlement: It will be hard, but you can negotiate a settlement with the IRS to have your debt quickly paid in one lump slum. With the help of a tax professional this could become a reality.

It's your choice: You can let the IRS seize the funds in your bank account, leaving you penniless- or you can act fast and make the right choices. Take these tips and get on the fast track to being debt free.

Today's Question: Did you find my eBook helpful? I want feedback from eBook readers! Send reviews to irs-hitman@taxdefensenetwork.com or you can comment this post.

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Breaking News!

Ladies and Gentlemen..........I'm very excited, and you should be too! I just launched my new e-book this morning: Tax Secrets Revealed: 100 Ways to Beat the IRS

You can read it by clicking on the image over on the right side of the blog. You can also click below to download the e-book

Right Click and "Save Target as" to download my Ebook "Tax Secrets Revealed"

I hope you enjoy it. As always your feedback and comments are greatly appreciated. I will keep you posted on other planned projects as they present themselves.

Today's Question: What do you think of the ebook?

As always, thanks for reading.

-The IRS-Hitman

Stock Market Crash Part Two?

Bears, and Bears, and Bears…Oh My! The Dow Jones lost 678 points today, making it the third biggest point lost in one session. That number was only surpassed by the point losses of Monday, September 29^th and Monday October 6^th. So why the bears? It’s simple, our financial economy is drowning and it looks as if there is no clear end in sight.

Election Time: With elections right around the corner, it seems that whoever is chosen for Presidency will be up against quite a monster. In the meantime, the stock market continues to drop, companies continue you collapse, and the IRS is sitting atop a high horse of power and finance.

What you can do: Spend your money wisely. If you’re planning on investing something, think very carefully about it. Minimize your losses and make sure you’re prepared for the worse. Square yourself away with your creditors, especially the IRS because they’re really cracking down this year. Unfortunately no one can say for sure what’s going to happen in the next few months; only time will tell.

Today’s Question: Do you think either candidate can do much about the economic crisis we are facing? If so, which one and why?

Now you the Smoking Gun…Use It!

Tonight's Debate: Winner Take All

Squaring Off: Senators Barak Obama and John McCain will be butting heads tonight as millions of Americans tune in to watch their favored party. Few times in history has a debate been so vital to a campaign. What with the economy the way it has been, each candidate has not focused on their campaign as thoroughly as they would have liked. This means that these next few weeks are crucial in decision making.

Taxes, Taxes, Taxes: That’s one of the biggest questions on everyone’s mind; what’s going to happen with taxes? Well, obviously the economy is going to be fiscally strained for some time, and that’s something that unfortunately neither candidate can change. But what we can do is make sure we turn on our televisions tonight, and make sure we pay close attention to each running mate.

UnBEARable: Meanwhile, the Stock Market continues to drop, with Investors nervous about the economy and national financial institutions. The Dow Jones closed at -514.84 today, leaving economists wondering “When will it end.” Unfortunately, it seems as if there is no end in sight.

Your Best Investment? Yourself. Make sure your debts are paid, and don’t slip further into future debt. Don’t rely on the financial companies of America. And if you have any questions about the IRS, or how you can resolve your issue with them quickly and effectively, fill out my form, shoot me an e-mail, or give me call.

Today’s Question: How do you think the economy is affecting this election, and do you think either candidate can do anything to change it?

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Death and Taxes: Will Death Stop the IRS, or Will They Expect the Family to Pay?

Hard to Say Goodbye: Dealing with the loss of a loved one is hard. And the IRS aims to make it harder. What happens when a beloved family member passes away without paying their IRS debt? Will the debt become your problem? Or is the IRS not allowed to collect on a deceased person's debt? The answer may shock you.

A Grave Matter: The IRS is set on getting their money. But they're not going to dig up your dear husband's corpse and auction it off to get it (We couldn't get much money anyway). That's why we try to take care of seizing assets before your loved one was buried.

Don't Relax Yet: If you filed jointly with the deceased debtor, the debt will become your problem. This is the only way the entire debt can fall onto another after the debtor has died.

The Facts: The executor of the estate has to inventory all assets. Once that is done any debts the deceased had prior to his/ her death are paid, and the remaining assets both liquid and non liquid is distributed among the beneficiaries per the Will.

Dead Serious: If you receive an inheritance, don't go spending it yet. The IRS has plans for that money. Some of the inheritance is taxable income. So learn the details before you end up in debt to the IRS, too.

-If you receive a lump sum cash inheritance, it's considered income. So unfortunately, it's taxable. If you do receive a lump sum cash inheritance, make sure you report it as income on your tax report.

-If you receive property as an inheritance, such as houses or cars, the items are nontaxable. But if the assets are sold, you will have to report the sale of the inherited asset as income.

-Life Insurance payouts are non taxable. Life Insurance isn't considered income, it's used to take care of the funeral and provide for the family.

Play it Safe: Don't think you're in the green just yet! The IRS may wrongfully charge you with tax debt. If this happens, sharpen your claws and be ready to protest it. Like I stated earlier, the only reason you should be responsible for a tax debt a loved one left behind is if your filed your taxes jointly with that person. And make sure you report any inheritance as income where it applies if you don't want to end up in debt.

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Watch for IRS Scammers!

Trick or Treat?……..Trick!

I did a post about this a few months ago…but I wanted to touch base with it again. I actually received one of these via e-mail this morning! I want to remind everyone about these scam companies sending out false e-mails about IRS stimulus checks.

It Looks Legit!

Usually the e-mail looks pretty legitimate. It says Internal Revenue Service at the top and then explains that you are owed a certain sum (mine said $625.00). Then it will say “click here to register so that you can get your stimulus check.” There’s even a Copyright at the bottom of the page that says IRS!

Tell-Tale Signs

If you click on the link it will take you to a very well made “mock-up page.” It will have all the logos and links as www.irs.gov. But keep in mind…it is NOT! Some dead giveaways are looking at the top address bar. If there are a slew of numbers before the address…it’s a phony website. You can also double-check it by clicking around the other links on the page. Usually, fake websites links just reload the current page, or bring you to a Not Found page.

It’s a Trap!

It’s important to remember these clues because if you take the next step by clicking, the site will ask you for your Social Security number and other personal information. Don’t fall into the trap! Remember, the IRS does NOT send out personalized e-mails. If you have questions about your check…just call 1-866-234-2942.

Today’s Question: What do you think may happen to the economy if the $700 Billion Dollar Bailout is not passed this week?

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