Stop That! Don't get Bold with your Deductions!

You don't want to get audited, do you? So stop claiming those crazy deductions. Don't claim your neighbor's kids, the cat, or your new sports car as a business deduction! I know this seems like common sense, but people ask me if they can claim these off the wall things all the time.

Audit Red Flags
The IRS looks out for the following Audit Red Flags before they send an Audit Notice.

Unusual Deductions: Taxpayers who make large and unusual deductions are easily spotted.

Income: Here are some indicators the IRS looks out for...

• Lots of round numbers on a report, like $1,000.00 or $100.00
• Income that doesn't fit with the price of living for your neighborhood or area
• A Drastic change in income from one fiscal year to the next
• Incomplete Returns

Medical Deductions must exceed a certain amount of your income or they can not be claimed.

Charity deductions: Receipts may not be enough to prove Charity Deductions. If large amounts were donated you need to obtain a letter from the charity detailing the donation for your records.

Office/Business Deductions: Many taxpayers get into trouble by claiming office deductions on items that do not qualify. Office supplies like computers, programs, and tools of the trade count, luxury cruises and cars do not. The IRS can easily spot the difference.

And as always...if you're not sure about something, double check with a certified professional first. Have a happy and safe weekend everyone!

Why Does the IRS Impose Tax Liens?

Tax Liens are devastating, so why would the IRS continue to impose them? The answer is simple; the IRS will continue to impose Tax Liens because they work. As long as Liens are being filed, taxpayers will be strained into paying their Tax Debt!

Ruined Credit
Once a Lien is filed your credit rating will be harmed and it will be nearly impossible to buy a house, buy a car, get a new credit card, or even sign a lease. Consequently, it is very important to work to resolve your Tax Debt before a Lien is filed against you.

Tax Liens Defined
Basically, Tax Liens give the IRS legal claim to your property as security or payment for your Tax Debt. When the IRS files notice of the Tax Lien, creditors are publicly notified that the IRS has a legal claim against your property. This includes:

• Property acquired after the Tax Lien is filed
• Accounts receivable
• House, Car, or Real Estate

Releasing a Tax Lien
There are several options for releasing a Tax Lien. Unless you are paying your Tax Debt in full, it will be hard to remove the Tax Lien without professional help.

Options for Releasing a Tax Lien:

• Payment in full: The Lien will be removed when the Tax Debt is paid in full.

• Withdrawing Liens: You can file to have your Lien withdrawn if Notice was filed too soon, you enter an Installment Agreement with the IRS, or if withdrawing the Lien will speed up collection of the Tax Debt.

It’s a good idea to consult a professional to see which option would be best suited to your case with the IRS.


Statute of Limitations, the Ten Year Rule

Usually, Tax Liens are automatically released ten years after the Tax Debt is accessed. If you feel that the IRS has negligently failed to release a Lien and that the Statuary period has passed, you should consider working with an attorney to have the Lien removed. You can even sue the Federal Government for damages incurred by the Lien.

How to Declare Financial Hardship with the IRS to Stop Collections

The Economy is Shot We're losing our jobs and ours homes. Many taxpayers don't have money to pay the IRS back. Don’t let the IRS back you into a corner@ If there is no feasible way to pay your IRS Tax Debt, you can declare Financial Hardship to (temporarily) halt collections efforts. Although this is usually a temporary reprieve, it is still a valuable tool for taxpayers in desperate situations.

Currently Not Collectible (CNC)
The IRS cannot force you to pay if doing so would force you to go without necessary living expenses. If you cannot pay the full balance or pay the IRS through an Installment Agreement without sacrificing basic needs, the IRS is required to report the account as “Currently Not Collectible” (CNC).

Who Qualifies for Currently Not Collectible Status (CNC)?
According to a Report issued by the IRS on January 6, 2009, IRS employees will have greater authority to suspend collection actions in certain hardship cases where taxpayers are unable to pay. This includes:

• Taxpayers that have recently become unemployed
• Taxpayers that rely on Social Security or Welfare Income
• Taxpayers facing devastating illness or significant medical bills

Applying for Currently Not Collectible (CNC) Status
The IRS needs ample proof that you are unable to pay your Tax Debt before they will change your account status to Currently Not Collectible. Here’s what the IRS will request:

• Completion of Form 433F, Collection Information Statement
• Additional documentation, such as receipts, past due bills, and bank statements
• Up-to-date Tax Filings

All contact from the IRS will cease while they determine if you qualify for Currently Not Collectible Status.

Temporary Reprieve Currently Not Collectible status is not a permanent solution for solving your Tax Debt. Your case will be reactivated if there are any indications that your financial situation has improved. For example, the IRS collected over $400 million from cases in Currently Not Collectible Status in 2006 alone.

Cheat your way out of IRS Tax Debt

The year of Cheats: This past year has seen high profile cases of tax evasion and in early 2009 Timothy Geithner, Tom Daschle, and Nancy Killefer, three of Obama’s top cabinet nominees, were revealed to owe the IRS big bucks. But that’s not stopping taxpayers from seeking creative ways to cheat while filling out their tax returns.

5 Ways to “Cheat”
The IRS is ramping up their collections efforts, $7.5 billions will be provided for enforcement in 2009. The IRS expects a return of investment of $6.5 to every $1.Their goal? They want to reduce the tax gap, the gap between taxes voluntarily paid on time and total taxes owed. This means if you cheat, the IRS is out to get you!

Smart Cheats- this isn’t to say there’s not way to play it smart and save money on your Tax Returns, just know how to play it safe if you want to keep the IRS off your back. Forbes recently wrote an article about "How to Cheat Like a Pro," here's some of the highlights from the article.

1) Write-Off Business Expenses
You already know you need to keep receipts for every work-related write-off. But now you also need to keep a detailed explanation for why the item qualifies as a deduction. And keep in mind, this item cannot normally be used for anything other than work related purposes. Otherwise, feel free to get a little creative when it comes to business expense writes offs.

2) Work with Honest Professionals to “Cheat”
If you tax preparer is tempting you to cheat, look elsewhere in a hurry. When the IRS discovers your illegal actions both you and the tax preparer will be at fault. However, you should be willing to work with someone who will think outside the box to maximize deductions. Basically, you should work with an honest professional for cover when you decide to make more off-the-wall deductions.

3) Smaller Deductions
The more you make in deductions, the more you stand out the IRS. Make as many deductions as you legally can, but try to keep things at a reasonable number. And keep in mind, the higher your income bracket the more likely you are to receive an IRS audit.

• If your income is under $200,000 your chances of any audit are 1 in 106
• By comparison, $200,000 and higher and your chances are 1 in 34
• Finally, 1 million and higher and your chances increase to 1 in 18

4) Advice about Offshore Accounts
Do you have an offshore account? Close it! Failure to disclose a foreign account is a felony, and the IRS in increasing their efforts to catch these offenders. They know they can make the big bucks by going after the big fish. Congress has increased rewards for offshore banks that turn in names. If you amend your returns before the IRS gets your name you can avoid prosecution and penalties, just make sure you hire a professional to work this out for you.

5) Take advantage of charity
Forget trips to goodwill, because it’s going to be harder to prove those old jeans you donated are worth $50 bucks. The IRS knows better. But if you’ve donated sums of $100 or more to charity, you need to keep more than canceled checks and receipts. These days to keep your bases covered you need the charity to write a dated letter acknowledging the donations.

Truly Strange Tax Write-offs.

Believe it or not I don't like to encourage my readers to get too creative with their tax deductions. After all, getting too bold can get you in trouble with the big boys at the IRS. But sometimes it pays to think outside the box. Take a look at these famous examples. It's pretty hard to believe some people have gotten away with.

Cat Food Under normal circumstances, the IRS will deny your attempts at writing off animal expenses. But one business got lucky during his tax court hearing. He was allowed to make a $300 deduction for cat food he purchased to attract wild cats to keep snakes and rats out of business' scrap yard.

The Ostrich Man Ever heard of depreciation being popular for homes, cars and computers? Well continuing with the animal theme, an ostrich farmer from St. Tammany Parish depreciated his ostrich. You can depreciate livestock as long as they are being used for breeding!

Music to their ears A lucky parent was likely ecstatic to successfully write-off their son's clarinet lessons as a medical expense. The parent's claim was that playing the instrument was correcting the child's overbite, and the IRS agreed.

Double Check don't go crazy with your deductions after reading this. If you're not sure about what you can write off, make sure to double check with a professional first.

Have a happy and productive work week everyone, or at least try to!

911 for Taxpayer Help!

Not your Fault: Owe the IRS through no fault of your own? Is the IRS pushing to collect when you don't have a cent to pay them with? Depending on how much you owe, there's a simple solution for getting the IRS off your back when you can't pay. Form 911 (Like Dialing 9-1-1, Coincidence?)is a formal Request for Taxpayer Advocate Service Assistance.

You can use the form if any of the following applies to you:

1. You are in a desperate economic situation, or you're soon to be in one.

2. The IRS is threatening to collect by force when you have no assets or income to pay with.

3. You'll face significant costs if relief is not granted

4. You will suffer irreparable injury or long-term adverse impact if relief is not granted.

5. You have experienced a delay of 30+ days to resolve a tax issue.

6. You have not received a response or resolution to your problem or inquiry by the date promised.

7. A system or procedure has either failed to operate as intended, or failed to resolve your problem or dispute within the IRS.

This is an excellent idea if you owe the IRS an amount less than say, $9,000. The Taxpayer Advocate service will generally request that certain activities but stopped while your request for service is pending. If your owe $10,000 or more, you might need to whip out the big guns and get bigger badder tax help. But overall, the Taxpayer's Advocate is your friend and will help you find a resolution when your Revenue Officer won't cooperate.

Tax Filing Tips - Stay Out of Trouble, Get the Facts on IRS Medical Deductions

Tax Time is here again, and Tax Forms and regulations never fail to confuse the general public every year. For example, IRS Publication 502 covers medical expenses. It has over 100 topics covered. So how can you easily find out who to claim medical deductions on? Don't worry, I've got you covered.

Qualifying Child:

According to the IRS, the only children who qualify for medical deductions are:

* Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them
* Is under the age of 19
* Is under the age of 24 and a full-time student
* Permanently and totally disabled

Adopted child: A legally adopted child is treated as your own child. You can include medical expenses that you paid for a child before adoption, if the child qualified as your dependent when the medical services were provided or when the expenses were paid.

Spouse: You can include medical expenses you paid for your spouse. But watch out. To include these expenses, you must have been married either at the time your spouse received the medical services or at the time you paid the medical expenses.

Qualifying Relatives:

* Son, daughter, stepchild, foster child, or a descendant of any of them
* Brother, sister, son or daughter of either of them
* Father, mother, or an ancestor or sibling of either of them
* Stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law
* Any other person (other than your spouse) who lived with you all year as a member of your household

Quick Tip: Be very careful about who you claim as a dependent on your medical deductions. You don't want to get buried in debt over a simple medical deduction error! If you're unsure about anything, get a second opinion from a professional.

When Tips Aren't Cutting it, How do you Pay the IRS?

Order Up! The IRS can serve up a large side of Tax Debt if you let them. Times are tough, but your taxes are still due every year. And if you tell an IRS Hitman you don't have the money to pay, he's just going to shrug it off. How can you pay your IRS debt when the money just isn't there?

Let Them Know: The first thing the IRS will want to know is how you can pay your debt. If you can't pay your debt in full, the IRS will want to know when you will. But what if paying the IRS would mean you can't pay your rent or even buy groceries?


Prove Hardship: If paying the IRS would create an economic hardship, collections activity can be suspended. You have to prove that paying the IRS would make you go without your basic needs. Basic needs are not generous. They include housing, food, clothing, transportation, and medical expenses. That's all. So if you have any excess money after your basic needs are paid for, you cannot qualify for a hardship plan.

Application: You can not apply without the IRS knowing all the details about your finances. Let them know it all by filling out Form 433A. But be careful! You need to be completely honest about everything you write. Even if you make a simple error, the IRS might see it as fraud. If you're not sure about what you should put on the form, consider getting professional help.

Final Tip: Statistics show the majority of servers are single moms. If paying the IRS will make your children go without any basic needs, collection efforts have to be stopped. Do not let the IRS bully you and your family. Fight Back!

Tax Rebate Updates, 2009!

Last years rebates are causing a lot of confusion and grief for tax filers this year. Last week the IRS said about one in seven of returns already filed have an error involving last year's rebate. Some people who recieved their rebate are mistakenly claiming the credit intended for those who didn't. So what do you do to avoid mistakes on your return? As always, the Hitman's got the scoop.

First of all most people who received rebates last year won't qualify for the recovery rebate credit, sorry for the bad news.

Rebate Credit Qualifiers: Here are the most common reason why someone might qualify for the recovery rebate credit this year.

-Financial situation changed dramatically from 2007 to 2008.

-A 2007 Tax Return was not filed

-Gained a qualifying child in 2008.

-The individual was claimed as a dependent on someone else's Tax Return in 2007 but cannot be claimed as a dependent for 2008.

Remember that you can qualify based on either 2007 or 2008 - use income level or number of dependents, whichever works out best for you.

IRS Tax Debt - Income Dropped? Two Ways to Get Out From Under Tax Debt

Empty Wallets: There's no jobs out there. Even if you're a college graduate, the pickings are slim. More and more people are having to settle for low income jobs until something better comes along. So what can you do when your pay is low and your IRS debt is huge? First, don't panic. And Second, stop ignoring it. There are still solutions for getting your huge Tax Debt off of your back.

No Way Out: Let me give you a friendly warning. When I was an IRS Hitman, I heard all kinds of excuses. Usually, people told me, "I just don't have the money to pay!" But that never phased me. You'll have to do better than that. You need the tools to actually fight your debt, not just complain about it.

You Need to know that the IRS can not make you go without basic needs. Your basic needs include food, housing, basic clothing, transportation, tools for work, and school supplies/books. If paying any amount of money on your Tax Debt would make you go without any of those basic needs, you do not have to pay your Tax Debt.

Fight Back: Here are good options for people with low incomes.


Hardship Plan: This is also known as "Suspended Collections." The IRS will carefully weigh the amount of money you make versus the amount of money you are allowed to have for your basic needs. If the amount of money you make is only enough to satisfy your basic needs, you'll qualify. The IRS will then suspend collections activities. The amount of time varies, sometimes you'll get over a year to get your finances in order. But this is NOT a permanent solution for your debt. Once the grace period is up, the IRS collection efforts will resume full force.

Offer in Compromise: You can settle your IRS debt for less. But don't think this is easy to do. You'll have to provide lots of evidence proving that there is no way you can ever pay your debt in full. Then you have to take a look at the 44 page long application and fill everything out. When you send the document in, you have to send 20% of your offer. If you make a mistake and your offer is not approved, the money is nonrefundable. If you are not approved the first time, consider getting professional help the second time around.

Be Careful: Applying for a hardship plan or an offer in compromise is hard work, and is even harder to qualify for, but they are the best options for people with little to no income. Remember, if you ignore your debt; interest and penalties will continue to accrue on your account. Don't let the IRS extort you for all you're worth. Face the music, and pay it off!

Have a great weekend everyone, I'll be back in the office bright and early Monday morning to help you with your Tax Debt questions!

Starting Trouble with the IRS - Working Under the Table Can Destroy Your Business

Freedom from the average... One of the major advantages to being your own boss is that you can sometimes bend the rules. "Handshake deals" and "Under the table" payments are common, especially between small business owners and/ or independent contractors. I know these seem like easy ways to work within small business circles, and a mutual barter system is the norm. However the IRS looks for these sorts of deals and comes down hard on the business owner or contractor if they find out about them.

Sticking together... Now when I talk about "handshake deals" and "under the table" deals I'm not talking about paying your nephew a hundred bucks for helping out for a day. What I'm talking about is doing work that would normally be a couple thousand dollars for a bartering of services, or giving a buddy a special price and not reporting it on your 1099.

They will want you to pay... The IRS doesn't care about those arrangements, because they want you to report on every little amount you earn, and every little amount you spend. If the IRS finds out you've been doing a substantial amount of work, "under the table" they will audit you so fast it will make your head spin.

Think about it... Even if you take away the possibility of the IRS breathing down your neck, you're really not helping each other when you make these "handshake deals". If you do work for someone under the table then you can't report it on your taxes as income. Your friend can't report it on his 1099 as a deduction for business expenses.

The IRS-Hitman's plan... There is a way to take care of this problem and still be able to work out these deals with your fellow small business owner/ independent contractor.

The IRS doesn't require you to just report cash income. Since barter is a form of paying for goods and services then it also should be reported to the IRS. The next time you barter one good or service for another draw up a contract. State the terms just as you would any other business transaction. That way you both will report your income correctly, and be able to claim the value of the "payment" as deductions. That way everyone wins.

The Top 5 Terms You Must Know to Stay Out of Tax Debt

The IRS is cracking down. So I feel obligated to help people learn how to stay out of debt. These are 5 terms you need to know to stay out of tax debt.

1. Taxable Income: This is highly important. Your taxable income is the money the IRS can claim taxes on. With few exceptions, this is all of your income. If you do not report your taxable income to the IRS, they'll make you pay later when you're in debt.

Heads up: Taxable income doesn't just include your wages from work. This also includes any large sums of cash you win as a prize, any large sum of money you make from selling things, the income from your side job, and even your unemployment benefits. So double check your earnings.

2. Deductions: This is your biggest IRS Advantage. So pay attention! This helps you pay less to the IRS. Let's say you have to pay $15,000 and your deductions are $5,000. Then you only have to pay $10,000.

Heads Up: The most common type of deductions are itemized deductions. These include medical expenses, theft losses, gambling losses, mortgage interest, and even other kinds of taxes (state, property, etc.) So do your research and save some money!

3. Voluntary Compliance: This means voluntarily complying with all the tax laws and being honest when filling out all your IRS statements.

Heads Up: This can work to your advantage. If you are already in debt to the IRS and you voluntarily comply with the IRS, they'll go easy on you. Just like sometimes the law is easier on those who turn themselves in. But really, you should always voluntarily comply with tax laws and stay out of trouble in the first place!

4. Withholding: This allows income to be taken out of your paycheck while you receive the income. Otherwise, you'd have to figure out the lump sum at the end of the year. The withheld taxes are deposited into your IRS account and credited for the amount you file.

Heads Up: This is an easy way to keep out of trouble. When the money you need to pay is automatically withheld, you're not tempted to go out and spend it. If your job is not offering this service to you, look into it!

5. AGI: AGI stands for Adjusted Gross Income. It's all the income you receive in one year.

Heads Up: This is the first step to calculating your income taxes, so make sure you get it right.

Final Tip: A lot of IRS policies are technical and hard to understand. Do your research well, and make sure you get everything right before you act. Your local library will have plenty of resources that can help you. And if you don't have time to file your taxes, seek a qualified Tax Professional that can help you do that.

You Have The Right to Remain Silent. . .

One question I get a lot is... How do I Stop the IRS from Garnishing my Wages?

There's more than one answer to that question, and the solution is never simple. Most taxpayers foolishly ignore the initial Notices of Intent to Levy that the IRS is required to send out.

Usually, a Wage Levy will only end when:

• You pay your Tax Debt, or
• The time expires for legally collecting the tax.

This means you must find a solution for paying on your Tax Debt in order to stop the Wage levy.

But, there is another option that is rarely discussed.

Three Strikes, You're Out: The IRS actually gives you a couple of warnings before they swoop in and seize your pay.

1. First, you receive "Notice and Demand for Payment" Remember that one? I'd say it's pretty cut and dry.

2. If you ignore the first notice, Next you receive "Final Notice of Intent to Levy and Notice of Your Right to A Hearing" at least 30 days before the Wage Garnishment.

If you read carefully, the second notice states "Notice of Your right to a Hearing." That's right, you can actually try a Collection Due Process Hearing to resolve your Tax Debt!


What is a Collection Due Process Hearing?

You have the right to a Collection Due Process hearing with the Office of Appeals. This means you must file your request within 30 days of the date listed on your IRS Notice (Final Notice of Intent to Levy and Notice of Your Right to A Hearing). You should consider a Collection Due Process Hearing or ask the IRS manager to review your case for any of the following reasons:

• You paid all taxes owed before the Wage Levy notice was sent
• You want to discuss options for paying your Tax Debt
• You want to dispute the amount owed
• The IRS made an error when assessing the amount owed
• The Statute of Limitations expired before the Wage Levy notice was sent
• You want to make a spousal defense

Remember, you must file your request within 30 days of the date on your notice. Fail to do so, and you've lost your golden ticket!

Get your Offer in Compromise Approved with this Foolproof Checklist

Can't Pay it? Settle it! O.k, so you must already know you can settle your IRS Tax Debt for less, right? But maybe you're not aware of the pathetic amount of Offers that are approved, we're talking around 2% of all offers submitted. On one hand, the IRS really is harsh when it comes to approving Offers, but there's another contributing factor. The taxpayer filling out the form, a.k.a: YOU. People are making too many errors when they fill out the forms!

Review time, How to apply for an Offer in Compromise:

In order to apply for an Offer in Compromise you need the following IRS Forms:

• Form 656, Offer in Compromise
• Form 433-A, Collection Information Statement for Wage Earners

Offer in Compromise Checklist for Success:

• Qualify for an Offer? Complete Form 656 “Is Your Offer ‘Processable’?” checklist
• Once you know your Offer is ‘processable’ gather all required documentation
• Get current with all of your Tax Filings
• Complete ALL items on Form 656, Offer in Compromise
• Include all fees and payments
• Respond PROMPTLY when the IRS requests additional information
• Complete ALL items on Form 433-A

Basically...Taxpayers often leave items they do not know the answer for on Forms 656 and 433-A blank. Do not do this, the IRS wants full and complete information regarding your situation. Remember, if you don't fill out Form 656 completely, that's $150 (and then some) down the drain!

Timothy Geithner, Tom Daschle, Nancy Killefer...what do they all have in common? Tax Debt.

Political Big-Shots Owe Big- I'm sure many of you have read this all before, but let me refresh those who have been inquiring about this issue. A series of Obama's top cabinet nominees were revealed to owe the IRS big bucks. Not one, not two, but three of them. Timothy Geithner, Tom Daschle and Nancy Killefer are the three embarrassed offenders. Here's the breakdown.

Timothy Geithner: Our new Treasury Secretary (as in, the guy who oversees the collection of taxes) owed over $35,000 to the IRS before he was sworn in on January 26, 2009. Geithner places part of the blame on TurboTax, which he used to prepare his taxes. My two cents is this; why didn't he hire a qualified professional to file his taxes on his behalf if he was too busy to do it himself? Apparently, it would have saved him grief in the long run.

Tom Daschle: Daschle was nominated for Health and Human Services Secretary, but withdrew soon after his huge tax blunders were made public. The former Senator paid his $140,167 Tax Debt in January 2009. Reportedly, he still owes thousands more!

Nancy Killefer: Killefer was nominated for a new post that concentrated on federal budget and reform. Ironically, she withdrew her nomination due to "Tax Issues," once it was discovered that she once had a $900 lien placed on her house for failing to pay unemployment taxes on household help.

I can't wrap my head around it... How did Timothy Geithner, Tom Daschle, and Nancy Killefer think their Tax Debt blunders would go unnoticed? Take a lesson from these three, there's no running from your Tax Debt mistakes or obligations. The only option you have is to move forward, and find the best solution for saving your debt (or in their cases, your reputation)!

How to Stay out of Tax Debt with our Economic Downturn

In these pressing economic times... we're all fighting to keep our heads above water. I know you've been reading this everywhere, but it's true. Until things get better, we all just have to stay prepared. Here are some ways to stay out of Tax Debt during an Economic Downturn.

I lost my job, what should I do?

Losing your job may spark new tax issues, even if you don't owe the IRS. Public assistance like food stamps are not taxable, that's good news. However, Unemployment, Severance pay, and even accumulated vacation or sick time are taxable. Here's where you can report unemployment taxes:

-Form 1040 line 19
-Form 1040A line 13
-Form 1040EZ line 3

I can't pay my Taxes by April!
Don't panic! You still need to file your taxes. If you don't, the penalties and interest will eat your bank account alive. So here's the game plan:

-File your taxes
-Work with the IRS for a payment plan
-Or work with an attorney/Tax Resolution company that can solve your case for you

Whatever you do, do not ignore your debt.

My income has fallen, what should I do?
A pay cut is always a terrible strain. But there is some good news, with a lower income, you might qualify for an Earned Income Tax Credit (EITC). The EITC is a refundable federal income tax credit for low to moderate income working individuals and families. With any luck, you could earn money and not owe money.

Still lost? Do you have a specific issue that needs resolution? If your research isn't giving you the answers you need, consider working with an attorney or third party to relieve you of your Tax Debt issues.

Scam Alert, Beware of False IRS Websites

Fraud Alert Yesterday I encountered a phony e-mail from a scammer pretending to work for the IRS. Today I thought of another danger, IRS Mirror websites. To simply things, the ONLY official IRS website is http://www.irs.gov/ If it ain't .GOV, it's not official. So watch out!

If you encounter these false websites, please leave them in the comments field so everyone can be aware of these dangers.


To Review, Phising Scams

This is a huge problem right now. Identity thieves are using tax-themed fake e-mail to get financial information out of people. Once they have what they want, they'll use the information to empty out your bank account! So you have to be very careful about who you give your information to.


Word of Caution: If something sounds too good to be true, it usually is. If someone is offering you an awesome way to save money quickly and easily, it's probably an IRS scam. It's a good idea to double check with a professional before you attempt anything that seems fishy.

A Friendly Warning...

Don't Fall for this! I was going through my inbox and encountered this e-mail:

Online Refund Form

After the last annual calculation of your fiscal activity we have determined that you are eligible to receive a tax refund of $620.50.
Please submit the tax refund and allow us 3-9 days in order to process it.
A refund can be delayed for a variety of reasons. For example submitting invalid records or applying after the deadline.
To access the form for your tax refund, please click here>>


Copyright Internal Revenue Service. All rights reserved.

That's funny... service@yahoo.co.jp does NOT look like an IRS Official correspondence address. That's because it's not, this e-mail is a prime example of a SCAM. But it looks official, doesn't it? These scams are circulating the web right now, so keep up your guard.

Step by Step Help for Small Business/Self Employed Workers

A little late… I usually keep track of these kinds of things, but what can I say, it’s been busy here at the tax-fighting headquarters. For small business owners, self-employed workers, and everyone in-between, the IRS created a nifty calendar, “The IRS Tax Calendar 2009 for Small Businesses & Self Employed.” It’s too late to order a glossy version of this free calendar to hang in your office, but you can still print and download the calendar. Follow this link to access it:

• 
  2009 IRS Tax Calendar

Basically, this calendar has helpful hints and reminders to help keep you in compliance with the IRS.

Save your ink: If you want to save your computer paper and printer ink, here’s some of the valuable information listed on the Official IRS Tax Calendar for February, 2009.

February 4: Deposit Payroll Tax payments on Jan 28-30 if the semiweekly deposit rule applies.

February 6: Deposit Payroll tax payments on Jan 31- Feb 3 if the semiweekly deposit rule applies.


February 10: File Forms 940, 941, 943, 944 and/or 945 if you timely deposited all required payments.

February 11: Deposit Payroll tax for payments on Feb 4-5 if the semiweekly deposit rule applies.

February 13: Deposit Payroll tax for payments on Feb 7-10 if the semiweekly deposit rule applies.


February 15: File a new W-4 if your claimed exemption from withholding in 2008.


February 16: Begin withholding on employees that claimed exemption from withholding in 2008 but did not file a W-4 to continue withholding exemption in 2009.


February 17: Deposit Payroll tax for January if the monthly deposit rule applies.

February 19: Deposit Payroll tax for payments on Feb 11-13 if the semiweekly deposit rule applies.

February 20: Deposit Payroll tax for payments on Feb 14-17 if the semiweekly deposit rule applies.

February 25: Deposit Payroll tax for payments on Feb 18-20 if the semiweekly deposit rule applies.

February 27: Deposit Payroll tax for payments on Feb 21-24 if the semiweekly deposit rule applies.

Mark this info on your calendar, hopefully it will keep you out of trouble with the IRS for the month of February.