Wednesday, September 30, 2009

Unlimited Employment Opportunities in the Tax Industry

The Tax industry is currently hiring. A local tax company's recruiting efforts have been covered by local and even National media sources, and now they produced a short film to answer all potential candidate's questions.



This short film discusses their rapid expansion, and gives potential candidates an idea of the office environment. It's an extensive look behind the scenes with their employees.

Interested in helping taxpayers in need? Send an e-mail. Include your resume, and the type of position you're interested in.

Tuesday, September 29, 2009

Celebrities and Tax Debt: Elvis Mitchell, Floyd Mayweather, Jim Press, Even Anna Nicole Smith Owe Back Taxes

Just making you feel a little better... You can't get away with NOT paying your taxes, and neither can they. Celebrities get caught neglecting their tax obligations left and right. Here's the latest batch. As one of them proves, you can't escape taxes even in death!

-Elvis Mitchell, a former New York Times Film Critic and now a host on Turner Classic Movies now owes big. The IRS claims he owes $500,000 in back taxes! How as he busted? Elvis Mitchell's financial situation were bought into question when U.S. border patrol guards busted him with $12,000 in undeclared cash and Cuban cigars last year...

-Floyd Mayweather agreed to pay $5 Million in back taxes! This is a high profile case, so the IRS put on the pressure. The IRS threatened to take his prize purse if he had failed to come to an agreement. Mayweather won the fight and netted earned $10 million in winnings, but he may be left for only $400,000 after he pays the IRS.

-Jim Press, Chrysler CEO has close to $1 million in IRS back taxes and is even being sued by his credit union (Western Federal Credit Union) for defaulting on a $609k mortgage loan.

-Anna Nicole Smith’s estate is in danger. The California State Franchise Board is claims Smith owes $43,000. This gives new meaning to the famous, "Death and Taxes" quote! The IRS won't let a little thing like death get in the way of collecting back taxes.

Escalation...these tax problems could have easily been avoided. IRS issues escalate, they snowball from a small issue into a huge debt in no time when left alone. The IRS first filed a $91,968 lien against Elvis Mitchell, now he owes over $500,000. If you owe tax debt, resolve the issue now before the IRS makes you.

Monday, September 28, 2009

Avoid IRS Debt: Freelance Workers, Hire Professional for your Taxes

Working for Yourself: You're skilled at what you do. You could be a construction worker, a photographer, an artist or a mechanic. You live life marching to your own drummer and doing what you love. But you can't ignore your IRS burden. When you work for yourself, the IRS still wants a cut of your profits. If you don't pay up, you'll wind up in debt. It's understandable that you have little free time to work on your finances on top of everything else. So be smart, hire some professional help if you need it.

Accountants: The IRS doesn't care if you're too busy to do your taxes and paperwork. No matter what, they will be due every year. So what can you do when you have too much on you plate to take on the IRS? Hire an experienced Accountant to do the work for you. Fees will vary, and you might think hiring one will be too much for your budget. But the money you pay an Accountant is almost guaranteed to be far less than the money you pay the IRS in fees and penalties.

Already in Debt?
Do you already owe the IRS? You have to act fast and think of a solution. If you don't have time to do that, consider hiring a Qualified Tax Professional. Tax Professionals are experienced and trained in IRS negotiations. Here are some tips for picking good ones:

-Retainer Fee: Look for Professionals who charge a flat rate only. Retainer Fees give the company the right to change the prices after you've already signed the contract.

-Credit Card Info: Is the company asking for your credit card information? Hang up the phone! You should not give detailed information like that over the phone.

-Pennies on the Dollar:
Any company that says they can settle your debt for "Pennies on the Dollar" is only interested in your money. They'll tell that you qualify for an Offer in Compromise, even if you can't. Remember, only 2% of the people who apply for an Offer in Compromise actually get approved. And even fewer people literally settle their debt for Pennies on the Dollar.

Easy Street:
There's already too much to stress about in life. Dealing with the IRS can be a confusing, stressful process. But you don't have to let it take over your life. If you didn't prevent IRS debt from happening with an Accountant, you should find a Tax Professional to help you.

Friday, September 25, 2009

IRS Payment Options: IRS Payment Options When You Can't Pay Back Taxes

Sometimes you don't have enough money to pay when Tax Time rolls around. Regardless if you have the money or not, your taxes are still due. And if you do not pay, your risk the IRS issuing Tax Levies, Liens, and Seizures against you.

The first good thing to know is that you can buy more time. If you know you will not have enough money to pay before Tax Time, you can file an extension with IRS Form 4868 " Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. " This will prevent the 5% per month late filing fee you'll receive if you decide to put off filing simply because you cannot pay.

But if it's already too late and you filed late, your Tax Debt is growing at an alarming rate. You need to get the facts and find a solution for your debt and fast. Here are options for those who simply do not have a dime to pay the IRS:

* Currently Not Collectible/Hardship: If you can prove to the IRS that you cannot pay your IRS debt and have no assets, you may qualify for this program. When your account is in Hardship Status, collections actives will be suspended temporarily. You have to file IRS Form 433A and detail your entire financial situation. You'll also need to gather plenty of documentation to prove your point.

* Suspended Collections: With Suspended Collections, the collections activity on your debt may be suspended until the Statute of Limitations on your account runs out. Taxpayers that usually qualify for Suspended Collections are those who earn disability or social security as their sole income.

If you have disposable income, you will not qualify to have collections activities suspended. But there are still options available for those with low incomes.

* Installment Agreement: You can pay your IRS Tax Debt monthly, much like you pay on monthly Credit Card Debt. But with some big differences. First of all, the IRS Installment Agreement is a binding contract and you cannot default on a payment. And second, the IRS will choose the amount you pay monthly based on your calculated disposable income.

* Offer in Compromise: You can settle your IRS Tax Debt. But this is an extremely difficult process. You have to go through 45 pages of paperwork and submit plenty of documents to prove why you need your IRS Debt Settled. Also, your chances of having an Offer in Compromise approved are greatly reduced if you do not have a professional submit your Offer for you.

Working with the IRS is very difficult. It's hard to even contact your Revenue Officer. It's a very good idea to have a professional negotiate with the IRS on your behalf when you can't pay back taxes.

Thursday, September 24, 2009

The IRS Will Audit 6,000 Businesses- Be Prepared

The IRS announced this plans to Audit 6,000 Businesses by February of next year. These randomized audits will crack down on businesses claiming Employees are actually Independent workers- the IRS will also be looking out for the other big Business sins, like improper deductions.

Be prepared: You'll need to have documents for your expenses on hand in case the IRS chooses YOU for a levy. It's particularly importance to have documents for all the Common Allowable Expenses.

How to get Documents for Common Allowable Expenses:


Rent/Mortgage: Show your monthly statement to the IRS. You can call your mortgage company or contact your land lord for this information.

Electric, Water/Sewer, Gas: Call your respective providers to obtain the statements for these expenses.

Prescriptions and Medical Equipment: Go to your pharmacy and ask for a print out.

Health and Life Insurance: Go to your payroll department at work and ask for a pay stub or a Health Insurance printout. If you aren't insured through work, call your insurance company and ask for a statement.

Day Care and/or Elderly Care: A Bank Statement will work if you're paying through debit or credit. Otherwise, request a letter from the care provider.

Alimony and Child Support: You can use pay stubs or divorce documents. Check with your lawyer on this.

Allowable Expenses: The list above covers all of the expense the IRS will allow. Remember that credit card debt does not count as an allowable expense. If you owe the IRS, expect your credit account to fall into disrepair.

Take Away: The IRS wants to prove it's not messing around when it comes to business compliance, and they're staying true to their word. If you have a tax issue with the IRS, now is the time to correct it.

Wednesday, September 23, 2009

Finacial Basics- Keep Organized Now to Prevent Tax Debt Issues in the Future

Rush rush: We're always on the go. There's not time to sit down and make sure our financial information is secured and accounted for. Before you know it you have a huge monster called "The IRS" breathing down your throat. You're not alone in this, like I've been discussing in this blog the past few weeks, even entire cities can easily get behind. And it all comes down to one thing- organization.

Organization is key: Businesses need marked calendars and even digital reminders to make sure quarterly taxes are paid on time. It's a little easier when you have to pay taxes weekly or monthly. But when you have to pay once a year, it gets a little trickier. When tax time rolls around it's a mad dash to the finish line- with papers flying everywhere.

Getting Organized- You'll be prepared when Tax Time Returns


The Keepers: This is the IRS’s official list of definite “Keeps.”

• Bills
• Credit card and other receipts
• Invoices
• Mileage logs
• Canceled, imaged or substitute checks or any other proof of payment
• Any other records to support deductions or credits you claim on your return


Tax Filing Checklist:


1. Personal Information: You need your Social Security details, as well as the Social Security details for your Spouse, Children, or any other dependants you may have.

If you’ve hired a full time babysitter or nanny, you need their Name, Address, Tax ID, and Social Security Number for your Tax Filing.

2. Employment and Income: You need to have the following forms on-hand:
W-2 Forms for the current year and/or if Form 1099-G if you’ve received Unemployment Compensation for the past year.

Remember to report ALL of your income. Including Alimony received Gambling and Lottery Winnings, or even Jury Duty Pay. Report this miscellaneous income on Form 1099-MISC.

3. Expenses: This is your chance to earn money, so don’t overlook this step.. Here’s some expenses that qualify:

Gifts to Charity, Investment Expenses, Job Hunting Expenses, Child Care Expenses, Alimony Paid, Adoption Expenses, and even Job-Related education expenses count.

Be careful, do not claim expenses if they are not qualified expenses, or you could get end up in debt to the IRS.

Get Organized NOW not later. The IRS announced plans to audit 6,000 businesses, they're cracking down. You need to have tax documentation on hand in case of the worst IRS scenario.

Monday, September 21, 2009

Updates from the Journey to Lynch, Kentucky

I'm back at the office playing catch-up. I checked hundreds of e-mails, attended some meetings, and I'm ready to get back to business. Director Don Campbell is hard at work editing footage from our recent journey to Lynch, Kentucky & Atlanta, Georgia. I can't wait to share it all, but for now, here's some stills.



A photograph of City Hall, where I resolved Lynch Kentucky's tax debt issues. Footage of the IRS Hitman discussing taxes with City Council members will be available soon.



This was one of the first shopping malls in the U.S



My job in Lynch, Kentucky was finished. I step into the hybrid car to head to the next destination in my "Million Mile" journey to help taxpayers in need.



Back from our journey, we share some souvenirs from Lynch, Kentucky.

About the "Million Mile" Journey
: I'm traveling Across the Country, helping taxpayers in need. I've stopped in Lynch, Kentucky and Atlanta, Georgia. While I'm on the road I keep viewers updated, live, via my Twitter account. Follow me on Twitter for consistent updates as well as IRS Tax News and Tax Tips.

Friday, September 18, 2009

The IRS Hitman Heads to Georgia as his "Million Mile" Journey Continues

We've finished up in Kentucky, and we're on our way to Georgia, where I'll meet with a former client. In an interview, we'll discuss his tax issue and how he resolved it. This should help taxpayers with issues viewing the video, it will show how you can get out from under your Tax Debt issues.



This journey has already been incredibly enlightening for both me and Don Campbell, the director. We're learning so much about people's perceptions of the IRS, and we've already personally helped so many people. We'll be editing footage over the weekend (The IRS Hitman never rests!) . You can expect to see footage and photos from our journey here on the IRS Hitman blog and on my Twitter account on Monday.

Thursday, September 17, 2009

The IRS Hitman interviews Lynch, Kentucky City Council Members

The City The IRS Hitman Saved Last year, a U.S City was Bankrupt and bullied by the IRS. The current recession caused budget shortfalls. The mayor and council members couldn't pay the IRS debt. They feared seizure of City Hall and owed over $120,000.

The Resolution Resolving Lynch Kentucky's tax debt issue was difficult. I had to work with the Mayor and the Board of Finances to keep the IRS Division Chief and their assigned Revenue Officer at bay. In the end, we got the IRS to offer a penalty pardon that saved the city!

The Interviews Still on my "Million Mile Journey" to help taxpayers in need, I spoke with three members of Lynch Kentucky's City Council, who are incredibly grateful for the solution we gave them. We can't wait to share pictures and footage.



We're not holding back on the bullets, we're using everything we've got. We're talking with local police, the citizens of Lynch, visiting the homes of City Council members, and there's even a running gag about an infamous Black Bear. We'll update more on this soon.

More on the "Million Mile" Journey I'm traveling across the Nation along with acclaimed director Don Campbell to help taxpayers in need. My first official stop was Lynch Kentucky, where I discussed spoke with members of City Council. I'll continue to update on our "Million Mile" journey in the coming months via this blog and my Twitter account. I'll continue to answer questions via e-mail.

Wednesday, September 16, 2009

The IRS Hitman's "The Million Mile" Journey in Detail

Yesterday I announced my "Million Mile" journey to help taxpayers in need. I'm on the way to Lynch, Kentucky, where I'm going to aid City Council and complete a new financial strategy that will prevent IRS issue now and in the future. This exemplifies what my journey is all about. I'm traveling across the nation to help taxpayers in need with their IRS issues. Along the way, I hope to:



- Meet with clients and people I've met along the way and share their stories. Their success with getting out from under crushing tax debt should serve as a template and inspire many who owe the IRS to do the same.

- Actively participate in client's tax debt resolutions. Construct a customized plan and strategy to help people and keep them compliant and out of trouble with the IRS.

- Spread awareness. By taking this journey, recording the process, and inviting my readers and the media along with us, we're spreading awareness of the burden taxpayers face during a harsh economic climate.

I'll continue to make blog posts about the journey every week day, and I'll update my Twitter with video clips, pictures, and details about our journey. Follow us every step of the way.

Tuesday, September 15, 2009

The Journey Begins: The IRS Hitman Travels "One Million Miles" To Help Taxpayers

The IRS Hitman's Epic Journey Begins Tonight: I've kept it under wraps, but now it's time to unveil the secret documentary project I'm involved in. Tonight, Director Don Campbell and I are embarking on Journey to help taxpayers in need. We're calling it "The Million Mile" Journey, and you're invited to come with us every step of the way.



I've rebooted my Twitter account. From here, I'll update daily with real-time photos, videos, and accounts of the journey. We're all eager to literally get the show on the road and help people in need. I'll be passing out the new IRS Hitman calling card, and even create financial plans to keep taxpayers from getting back into trouble with the IRS.

I'll continue to update the blog with my laptop and phone, and you'll also be able to contact me by e-mail or call an associate at my office at 1-888-248-9058.

I can't wait to share the journey with everyone. Follow me on Twitter and keep track of the journey.

Monday, September 14, 2009

Updates on ACORN: Pimps, Hoes, and Taxes, Oh My!

A lot of people e-mailed me asking for the infamous ACORN video. By popular demand, here it is. Watch ACORN officials advise citizens posing as a Pimp and a Prostitute on how to cheat on their taxes.



True, the situation is a little humorous. But there's nothing humorous about these officials getting caught advising people to take illegal acts against the IRS. As a former Revenue Officer, I've heard it all. So many people continue to do ridiculously illegal things, like claim $9,600 for earnings when they made $96,000. Sometimes they don't think they're doing anything wrong. Don't work with anyone but reliable professionals when it comes to handling your taxes! This video with ACORN proves that help from nonprofit community organizations, even if they mean well, could lead you down the path to destruction.

Friday, September 11, 2009

ACORN Officials Caught Telling "Pimps" & "Prostitutes" to Lie to the IRS

ACORN- the seedy (couldn't resist) organization was caught on tape advertising journalists posing as a "pimp" and "prostitute" to lie to the IRS. (Watch it here.) ACORN, which stands for "The Association of Community Organization for Reform Now", has noble aspirations. Affordable Housing, Better Schools, Health Care, Immigration, Voter Engagement, and Fair Tax Fees. This is where ACORN gets into trouble.

Background: In the tape, James O'Keefe, a 25-year-old indie filmmaker posted as a pimp with a 20-year-old woman named "Kenya" who posed as a prostitute. They told ACORN staffers they wanted to secure housing to continue their prostitution business. Here's just a few of the big tax offenses this "Pimp" and "Prostitute" duo were told to commit on film:

ACORNS' Tax Crimes, Caught on Tape:

- "Kenya" tells an ACORN staffer that she earns $8,000/month. The ACORN worker suggests submitting a tax return for 2008 showing that she made $9,600 for the entire year — instead of $96,000.

-An ACORN staffer suggests that the prostitute list her occupation as a freelance "performing artist." The "Pimp" protests, "It's not dancing, trust me," but the ACORN staffer insists that this is completely okay.

-The "Pimp" reveals that he and "Kenya" plan to bring up to 13 "very young" girls from El Salvador to work as prostitutes. The ACORN staffer suggests claiming them as dependents.

-The "Pimp" says the girls will be working for him, the ACORN staffer says "If they making money and they are underage, then you shouldn't be letting anybody know anyway," then laughs. "It's illegal. So I am not hearing this, I am not hearing this. You talk too much. Don't give up no information you're not asked."

-The staffer suggests that up to three of the underage girls can be listed as dependents at the home, but a "flag" will be raised if as many as 13 are listed. "You are gonna use three of them," the staffer says. "They are gonna be under 16, so you is eligible to get child tax credit and additional child tax credit."

-The "Pimp" asks what would happen if the organization is connected to the scheme and gets this reply, "First of all, it's not gonna damage us because we not gonna know. And with your girls, you tell them, 'Be careful.' Train them to keep their mouth shut."

Take Aways

A seemingly benevolent organization, out to help taxpayers in need might not be what it seems. If anyone you choose to work with willing selling you outlandish "shortcuts" to resolving your tax debt problems, don't work with them. If you get caught, you'll go down. If you need help with your taxes, only work with reputable, reliable professionals.

Thursday, September 10, 2009

IRS Scam Alert- Watch Out for Scam Mail in Your Inbox

Let's make this simple: The IRS NEVER sends out e-mails requesting information. If you receive an e-mail of this sort, it's a fraud by default. Here's the latest fraud e-mail I've received:



This looks official, these scammers didn't do a bad job. But don't be fooled into giving your personal information via e-mail!

Wednesday, September 9, 2009

The IRS's Latest Failure: $10 Million Spent on Abandoned Project

The Good Idea: The IRS had a good idea- provide online access to tax records. This was going to be called "My IRS Account" and it was going to have tools to help citizens with tax preparation. But yesterday, the inspector general for tax administration reported that the project that cost $10 million to development was abandoned close to completion, due to poor planning.

The Bad News: Most taxpayers get information by calling the IRS toll free numbers, but as many of you know, this causes a long wait time. This new system was going to make it easier on both the taxpayer and the IRS.

"With incomplete project termination procedures, shutting down a project could result in loss of data during migration or archival of information in the event the system, or portions of the system, is reactivated."

The Good News: There's light at the end of the tunnel. The IRS intends to reuse most of the hardware developed so far. This means it could be available anywhere between 2009-2013. Here's the expected features for "My IRS Account" as published by the IRS in 2008:

• My IRS Account will provide taxpayers online access to their federal tax return and account information.

• My IRS Account will be available around the clock, every day.

• My IRS Account will provide a secure online environment to ensure privacy.

• My IRS Account will allow users to view and download their account by tax years.

• My IRS Account users will have the ability to view and print tax return and account information for the current and previous three years.

"My IRS Account" will NOT be used to:

• Be used to identify, locate or monitor individuals or groups.

• Use persistent cookies or other tracking devices to identify web visitors.

In the meantime... the IRS is still as difficult as ever. It's excellent that the IRS is taking these first big steps towards being entirely user friendly and interactive. Access to your tax information will make it so much easier to resolve, and prevent tax issues. But until then, taxpayers are stuck with long waits and poor service to resolve their issues or retrieve information.

Tuesday, September 8, 2009

Tax Help Videos on YouTube

Tax Defense Network has posted up its tax help videos from local news stations on their YouTube channel. Be sure to check it out for even more tips than provided in my blog!
Tax Defense Network Senior Tax Attorney: Ronnie Hicks.

Thursday, September 3, 2009

Knife-Carrying IRS Employee Seeks to Sue Timothy Geithner

Yes, the headline is true: A (now EX) IRS employee tried to carry a knife into the workplace, a kirpan, to be precise. The knife totting employee filed a suit based on religious discrimination, claiming her civil rights were violated.

According to the examiner, "A kirpan is a small ceremonial sword and one of the Sikh Articles of Faith. In January 2009, Kawaljeet Tagore filed the lawsuit against the Department of the Treasury, the IRS, the Department of Homeland Security, the Federal Protective Service, and several individual government officials and employees."

While it's true that carrying a kirpan is part of the sikh faith, it's hard to justify carrying a knife (or small sword) into a government building. Envision the carnage a disgruntled worker could inflict! But was this a "Real" sword?

The plantiff, Kawaljeet Kaur Tagore claims that the sword is not sharp capable of inflicting bodily harm. The lawsuit notes the normal distribution of practical items like scissors, box cutters, and kitchen knives in the building. She also tries to distinguish to kirpan from dangerous weapons that are prohibited in federal facilities. (section 930 of title 18 of the United States Code).

What do you think on this case?

Wednesday, September 2, 2009

Use Nortel's $3 Billion Tax Debt as a Lesson- IRS Tips for Small Business

Remember Nortel? Surely somewhere in that back of your mind you remember this former cell phone giant. Well, just when we thought Nortel had reached rock bottom, they hit a new low. They owe the IRS almost $3 Billion for the period between 1998 and 2008. That's $1.80 Billion in taxes owed and $1.16 Billion in interest. What's Nortel's response?

"We had significant tax loss carry-forwards in the U.S., the size of which have been subject to review by the IRS. However, we are not aware of anything that would lead to a tax liability of that magnitude."


It might seem hard to believe, but having a tax debt with no idea how it happened is common for businesses, even giant ones like Nortel. The IRS doesn't make it easy for Business owners. And when they owe, they play hard ball. Here's some tips for current or soon to be business owners. With some prior research and knowledge, you should be able to avoid a mess with the IRS.

Small Business and Tax Debt, Tips for Tax Debt Prevention

Ignoring Debt: Small Businesses usually start out shaky. If you're just starting your own business and you have no experience, it's hard. You may even be in the red the first couple of years. But that's no reason to ignore your taxes. They are still due every year. And if you don't pay, the punishments will be severe.

How They'll Hit: The IRS can shut you down. This is a Small Business owners worst fear. But even more punishment can be dealt out. The IRS has the power to freeze your bank account. And if that's not bad enough, they can come to your house and Levy all your luxury items. They can even go after Accounts Receivable.

Don't Be Greedy: The IRS keeps a close eye on small businesses. They are looking out for obvious signs of Tax Fraud. These are called “Badges of Fraud.” Some common Badges of Fraud for small businesses are:

-Businesses with two sets of books, or none at all
-Ridiculous Expenditures claimed as “Business Expenses” (Like a new pool for your house.)
-Altered Checks
-False Receipts

Keep In Mind: Don't let my warnings scare you. There are items you can claim as tax deductible for your business. But watch out. Before you claim anything, make sure you can prove it was really used for your business.

-Travel Expenses
-Interest on Business Loans
-Work Equipment (Trucks, Computers, Office Supplies, etc.)

Getting Help: What if you already ignored your debt? If the IRS has already sent your notices, do not delay! At any moment, the IRS can use one of it's weapons of collections against you. Instead, you need to do your research and find out what's a best way you can pay them off. And if you don't know what to say when you call the IRS or you're too busy, you can contact a Tax Care Professional who can handle the situation for you.

Giving Your Cut: Things are going good. And when they are, put money to the side for Uncle Sam. Not paying your taxes can make or break you. So if you don't want the IRS to take your small Business from you, put the IRS first and remember to pay your taxes.

Tuesday, September 1, 2009

Tax Defense Network's Senior Tax Attorney Ron Hicks featured in the latest Documentary



Tax Defense Network's Senior Tax Attorney, Ron Hicks, negotiates directly with the IRS on behalf of our clients to get the best deal. I see him work tirelessly to get the best deal for our clients, he doesn't take no for an answer and uses his extensive knowledge to work the system. As a former IRS Revenue Officer who faced off against Tax Attorneys all the time, it's surprising to see him close successful cases day after day. This video provides a peek at his process.



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