The IRS Hitman Presents: The Tax Kids

The official video for "The Tax Kids" is now online.



It's been fun to participate in this project. The Tax Kids is a light-hearted project that brings humor to serious issues like tax debt. We Developed this in hopes of spreading awareness of serious issues like Tax Debt, and perhaps make it easier for children to understand the issues their parents are going through.

Since it's Halloween, I thought I'd feature the Trick Or Treat feature again as well:



Have a Happy and Safe Halloween!

5 Basic Options for Resolving IRS Tax Debt

Get the Facts: There's a lot of ludicrous ideas out there about Tax Debt. So you need to know the cold hard facts. Don't let unreliable people tell you that settling tax debt is “Easy” or that there's “tons” of ways to pay off the IRS. Because it's not true. Working with the IRS is hard. Filling out IRS paperwork is daunting. And there are only 5 real options for handling your IRS Debt.

1. Wait for Statues to Expire: Bad idea! The statue of limitations on your debt will not expire for 10 years. And sometimes, the statues are extended (like if you file for an “Offer in Compromise.”) And while your waiting for the time limit to expire the IRS can collect on your debt by force with Tax Liens, Levies, and seizures. Don't give them the opportunity to do this. It will not pay to ignore your debt.

2. Pay in Full: If there is any way you can actually pay in full, do it! Do not submit an “Offer in Compromise” if your have money in the bank to pay for your IRS Debt. Your IRS Hitman has access to your bank account. If they see you have the money to pay, they will tell you to pay in full.

3.Settle It: The IRS gives you the chance to submit an “Offer in Compromise.” You're are basically settling your debt for a lower amount. Very few people are actually accepted for this program. And barely anyone has their offer accepted for “Pennies on the Dollar.” But if you are in a truly desperate situation, you might want to see if an “Offer in Compromise” is an option for you.

4. Suspend Collections: If you are in a situation displaying true Financial Hardship, prove it. The IRS might stop the collections process for a limited amount of time so you can get your finances back in order. They will determine the amount of time based on your situation, and check up on you periodically to see if your situation has changed yet.

5. Pay Monthly: You can pay the IRS monthly. You have to enter into an “Installment Agreement” with the IRS to do this. The IRS will take a close look at all your finances and assets. If you're approved to pay monthly, they choose the amount you pay each month. Then you are locked into a binding contract, stating that you must pay a certain amount monthly. And defaulting can have harsh results.

Still Hope: Sorry if I'm making things seem hopeless. Yes, paying off your IRS Debt is hard. The IRS's system of ruthless Hitmen doesn't help the matter. But there are ways to get your debt taken care of. None of the options I have described are easy to do. But you have to do them if you don't want to remain in debt to the IRS forever.

IRS Tax Debt: How to Pay the IRS with Easy Monthly Payments

Catch it Early: You usually file your taxes on time. But this year, you're scared to. You know this you owe the IRS, but this time, you can't pay it. So what should you do? Don't ignore your IRS Tax Debt. Find a solution to pay it off. The IRS actually offers a program that lets you pay your debt in monthly payments.

Paying Monthly: The IRS has a program that allows taxpayers to make simple monthly payments. It's called an “Installment Agreement.” It's a good option if you cannot pay your IRS Debt in full.

Installment Plan Criteria:
-You paid all your taxes for the past 5 years and on time, too
-You can provide documents to prove you can't pay your taxes in full on time
-You agree to pay the full amount owed in 3 years maximum
-You agree to comply with all tax laws during the plan
So you think you qualify? Next, is the hard part.

How To Apply:
-Fill out Form 9465 (You may be asked to fill out form 433-A as well)
-Include detailed evidence showing why you cannot pay your bills on time.
-If you are approved, pay the fee and then your first payment as soon as you get the IRS's letter

Pay on Time! If You don't, you'll be risking Tax Lien and Levies. And you won't be able to apply for an Installment Agreement for another 5 years if you mess up and don't pay.

Hurtles to Jump: The IRS wants their money as soon as possible. They don't want to give you an installment agreement. You will have to fight hard to get your Installment Agreement approved. If you are not accepted the first time, try again!

How to File for Innocent Spouse Relief

You just received the IRS's dreaded “Notice of Intent to Levy,” but there's a big problem. This isn't your IRS Tax Debt! This is your spouse or ex spouse's problem. So what can you do when the IRS has its sights set on your bank account? Innocent Spouse Relief may solve your problems.


Innocent Spouse Relief 101: Most married couples file jointly to save money. But with the savings comes a big disadvantage. When taxpayers file jointly they are held liable for their spouse's taxes. So if your spouse underreports their income, you'll get the blame too! And if they can't pay, guess who gets the bill…you!
Where do I start?

To request Innocent Spouse Relief, file Form 8857, “Request for Innocent Spouse Relief”.

Will my ex spouse know if I Request Innocent Spouse Relief?
The IRS is required by law to inform your ex or current spouse when you file for Innocent Spouse Relief. There are no exceptions, not even for victims of spousal abuse. But don't fret, your current address, employer, new name and other personal information will not be disclosed.

What else should I include with my form?

The IRS encourages you to file Form 8857 even if you don't have any documentation. But it's a good idea to provide all of the physical evidence you possibly can, they'll increase your odds of winning. If you have bookkeeping documents, sales receipts, or anything else that proves you were unaware of your spouse's debt, include it when you mail the form.

Will I still receive my Tax Returns while my request is being processed?
As long as you don't owe the IRS, you will receive your Tax Returns.

How long will it take for the IRS to get back to me?

The IRS will carefully review the forms. It could take them as long as four months to get back to you. If you hear no word from the IRS after four months, consider resubmitting or hiring a tax professional to help you with your case.

Denied: Many Innocent Spouse Relief claims are denied. So you must make sure you provide plenty of documentation to back up your case. Basically, you need to prove you didn't know anything about your spouse's debt. Because you file and sign the papers, you're automatically liable. If you were already denied relief and have new information to provide, you can resubmit your form with your new documents.

The IRS Hitman features in Tax Defense Network's "The Tax Kids"

I hinted at a new project last week; now is the time to reveal it. I participated in a new video for "The Tax Kids" (www.thetaxkids.com) . The Tax Kids is intended to be a fun, light hearted approach spreading Tax Debt awareness. Take a load off and enjoy the fun video, but remember, if you ignore IRS issues you'll be in for a true horror story once they catch up with you.

The IRS Hitman Films Another Video

I'm ready for my close-up again... late last night we finished up production for a video explaining my background and my mission. (Like my hat?)

We're always working hard behind the scenes thinking of ways to spread awareness of tax debt issues, and ultimately help more people in need. It's been hard for me to catch up, writing blog posts in the morning, participating in morning meetings, going through hundreds of e-mails, then filming at night. It's hard work, but it's rewarding.

In my past videos I've mostly earnestly discussed my decision to leave the IRS and join the Good Fight as the IRS Hitman. This time, I get to stretch my acting skills.

Expect more videos and updates in the near future. I'll share out latest video on the blog as soon as it's available.

IRS Tax Issues: Medical Deduction Myths to Avoid, Stay out of Trouble With the IRS

Stop Right There: Don't make a claim unless you know the facts. There are plenty of rumors swirling around about what you can and cannot claim as medical deductions. But the IRS's official list in Publication 502 says otherwise. Watch out, don't fall for the myths and get into trouble.

1. You can include ALL of your insurance premiums in your medical deductions.

Wrong. The IRS actually has a list of insurance premiums that you cannot include as medical deductions. These include:

- Life insurance policies
- Policies providing payment for loss of earnings
- Policies for loss of life, limb, sight, etc
- Policies that pay you a guaranteed amount each if you are hospitalized for sickness or injury
- Health or long-term care insurance if you elected to pay these premiums with tax-free distributions
- The part of your car insurance premiums that provides medical insurance coverage for all persons injured in or by your car because the part of the premium for you, your spouse, and your dependents is not stated separately from the part of the premium for medical care for others

2. You can include your Weight-Loss Program in your medical deductions.

Wrong again! You can ONLY include a weight-loss program in your medical deductions if the program is vital and you have a serious medical illness. This includes issues like obesity and heart disease. But remember, even if you do qualify to use your weight-loss program as a deduction, you cannot include membership dues in a gym, health club, or spa as medical expenses. You can only include separate fees charged at the gym or health club for weight loss activities.

3. You Can Include Cosmetic Medical Procedures in your Medical Deductions.

No. This is almost never true. You cannot include procedures like teeth whitening, plastic surgery, or hair removal in your medical deductions. Some people think you can claim things because they may help your overall health, but you cannot claim ANYTHING that is better for your overall health. (Like Vitamins, Herbal Supplements, and Vacations!) However, if the cosmetic surgery is to help repair disfigurement from birth defects or injuries, you may be able to claim the procedure as a medical deduction.

Fair Warning: If you claim a medical deduction that is not considered to be appropriate, the IRS may label it as Tax Fraud. Tax Fraud is a crime that carries civil penalties and criminal charges. So don't try to get creative on your Tax Returns!

Beware ALL E-mails Claiming to be from the IRS

Many of my clients, coworkers, and friends are receiving e-mails claiming to be from the IRS. The subject line usually reads "Regarding Underreported Income." I've been receiving dozens of these messages myself, and I warn everyone I can about the danger of these phishing scams. The IRS does not directly send messages to everyone. In fact, here's information directly from the IRS's official website:

The IRS does not initiate taxpayer contact via unsolicited e-mail or ask for personal identifying or financial information via e-mail. If you receive a suspicious e-mail claiming to come from the IRS, take the following steps:

• Do not open any attachments to the e-mail, in case they contain malicious code that will infect your computer.

• Do not click on any links, for the same reason. Also, be aware that the links often connect to a phony IRS Web site that appears authentic and then prompts the victim for personal identifiers, bank or credit card account numbers or PINs. The phony Web sites appear legitimate because the appearance and much of the content are directly copied from an actual page on the IRS Web site and then modified by the scammers for their own purposes.

• Contact the IRS at 1.800.829.1040 to determine whether the IRS is trying to contact you.

• Forward the suspicious e-mail or url address to the IRS mailbox phishing@irs.gov, then delete the e-mail from your inbox.


Conclusion: Don't trust any e-mail you receive that's from "The IRS"- the IRS will not send unsolicited E-mail messages.

IRS Tax Debt: Common Tax Problems and Their Solutions. Keep Your Head Above Water

It's Your Turn: Most people experience a problem with the IRS at least once in their lives. Think about it, the IRS is the biggest collections agency in the world. It touches everyone you know. So make sure you know some common Tax Problems people experience. That way, you can stay one step ahead of the game and avoid IRS Debt.

Underreporting: A lot of people think it's completely legal to underreport your income on your tax returns. But this couldn't be further from the truth. If you were not already in debt, getting caught underreporting on your tax returns can easily land you in debt. You'll not only owe back taxes, but penalties and interest as well.

Solution: Report your income as accurately as possible on your Tax Returns. Do this by filing “Profit or Loss from Business.” Remember, the IRS has access to your bank account. They can see the amount of deposits you made and compare it to the amount of income your reported. If things don't add up, you'll be in hot water with the IRS.

Payroll Taxes: If you own small business, filing your payroll taxes on time is crucial. The IRS can make you pay back 100% of the payroll taxes not filed, plus interest (Internal Revenue Code 6672).

Solution: Hire an Accountant or CPA who can handle this issue for you. There are also banks out there that will file your payroll taxes on time for you. Consider any of these options if you're strapped for time and can't report on your own.

Unable to Pay: Many people cannot afford to pay their IRS debt in full. Some people have lost their jobs, become ill, had a loved one become ill, or have become disabled. There's still hope if that is the case for you.

Solution: The IRS may suspend collections activity and allow you to get back on your feet. This a “Grace Period” or “Suspended Collections” You have to prove that paying the IRS would create an economic hardship for you. It's hard to make the IRS relent. So you have to provide your complete financial information along with supporting documentation.

Stay on Top: It only takes one small error to wind up in debt with the IRS. It's a monster of a system, and not even IRS personnel understand all of the rules. If you have a problem that you cannot solve on your own, try to look for professional help.

How to Resolve Unpaid Payroll Taxes With the IRS

Resolving the issues that arise from being delinquent on Business Payroll Taxes is no easy task. However, in the mid 90s provisions were added to the Taxpayer’s Bill of Rights. They were designed to help Small Businesses that were just starting out. Don’t be intimidated by daunting Tax Laws. You still have your Taxpayer Rights.

You can Appeal: Many Business Owners are unaware that they still have rights as Taxpayers. You have 60 days from when you get notice from the IRS to file an appeal. Appealing will buy you time, but it's not a permanent solution. However, the extra time will allow you to consult with a Tax Professional or seek Professional advice.

First-Time Offenders: There’s a law in the Taxpayer’s Bill of Rights designed to help fledgling Small Businesses. According to this law, the IRS can forgive the harsh penalties imposed when Small Business owners fail to deposit payroll taxes on time. But this only applies if you are a first time offender. The IRS can also abate penalties applied for sending the payments directly to the IRS instead of depositing it to the correct bank.

Paying Tax Debt: The truth of the matter is, Appeals rarely work. And even if you’re a first-time offender, penalties and debt imposed by the IRS may not be forgiven. When this is the case, it is important to pay off the Tax Debt as soon as possible. If the debt is not paid off in a timely manner, the interest accrued every month can double or even triple the debt. If the option of paying off the Tax Debt in full exists, it’s imperative to act on it and pay it off as a priority.

There are many land mines that come with the otherwise relative independence of being a business owner. It’s a good idea to hire Bookkeepers and Accountants to help relieve the stress and burden of dealing with IRS Issues. And if all else fails, you can seek advice from a professional.

Amending a Tax Return that Was Filed Incorrectly to Reduce Tax Debt

Mistakes Happen: The IRS encounters thousands annually. The IRS’s complicated Tax Laws are overwhelming for the average Taxpayer. Every Tax season something is bound to go wrong. In light of all the errors that inevitably occur, the IRS has created ways for Taxpayers to Amend Tax Returns that were Filed Incorrectly.

The IRS usually corrects math errors on Tax Returns. In addition to that, they usually request forms that are missing when they process original returns. If the IRS has done this bit of work on your behalf, it will not be necessary to file an Amended Tax Return. However, there are a few instances when filing an Amended Tax Return is necessary. If any of the following was reported incorrectly, you should file an Amended Return:

• Your filing status
• Your dependents
• Your total income
• Your deductions or credits

Steps to Take for Filing an Amended Tax Return:

1. Use Form 1040X, “Amended U.S. Individual Income Tax Return.” You can use this to correct previously filed Forms 1040, 1040A, and 1040 EZ

2. Write the year of the Return you are Amending at the top of Form 1040X. You cannot use one Form 1040X to correct two tax returns. You must prepare a separate 1040X form for each Tax Return. You must also mail them in separate envelopes.

3. Mail the envelope containing the Amended Tax Form to your area’s IRS processing center. The Form 1040X instructions list the addresses for your area’s IRS processing center.

As long as you act swiftly you can still receive your Tax Return. However, making sure you fill out all of the correct columns of Form 1040X can be a bit tricky. If you are not sure about the details of your Tax Situation or you’re unsure of some specific Tax Laws, consider contacting a professional to help you with this step of the process.

Man Sentenced to 5 Years For Filing False Tax Returns

Marcel J. Toto-Ngosso, age 50, was convicted of 17 counts of aiding and assisting in the preparation and filing of false tax returns and was sentenced to 70 months in prison for preparing and filing false Tax Returns.

According to the U.S. Justice Department and the IRS, Marcel J. Toto-Ngosso took part in a scheme to generate fraudulent tax returns for clients. According to trial evidence, Toto-Ngosso obtained the names and social security numbers of idividuals, which he later sold to his clients for $500 to $800 each. He then used the names and social security numbers on his clients' tax returns so they could secure larger refunds by claiming fraudulent deductions and income adjustments. He did this all through a home base business for 9 years before the IRS finally caught up to him.

His offenses, prosecutors said, took place over nine years through 2007 from a business based at his home.

“As today’s sentence shows, fraudulent tax return preparers face serious consequences, including jail time,” said John A. DiCicco, Acting Assistant Attorney General of the Tax Division. “This case also demonstrates why taxpayers should carefully review their individual income tax returns before signing and filing their returns with the IRS.”

“Tax return preparers help Americans with one of their biggest financial transactions each year. We must ensure that all preparers are ethical and provide good service,” said IRS Criminal Investigation Chief Eileen Mayer. “Today’s sentence signals our determination to ensure the tax preparation industry is on board with our overall goals to strengthen the tax system.”

Cracking Down: The judge ordered Marcel Toto-Ngosso to pay $238,788.25 in restitution for his crime. Two of his associates were sentenced along with him. Even if the IRS doesn't catch up with you at first, they will eventually. Face your IRS responsibilities before the IRS brings the hammer down on you!

Tax Filing Deadline Approaches for Extension Filers- 5 Last Minute Tips

Filed an extension for filing your Tax Returns back in April? Taxes are due tomorrow! Still working on your Tax Return? Get with it and get the thing done! Taxes are due Wednesday of next week. To kick off the last week before taxes are due, I'm offering some Last-Second Tax Filing Tips. Get to work, procrastinators!

Tips for Last-Second Tax Filers All the Tax Filing Help you need

1. Double-Check everything
Particularly if you’re filing a paper return, it’s important to double check all of your figures to make sure your calculations are correct.

2. Mailing to the Right Place
Your tax package should include a coded envelope for mailing your return. If it doesn’t, check a section called “Where Do You File?” in the tax instruction booklet.

3. Sign Your Form
I know you must be tired of reading this, but it’s an easy step that so many taxpayers forget. If you’re filing jointly, you and your spouse must sign. Additionally, anyone paid to prepare your return must sign the form as well.
4. Electronic Filing
Filing electronically is a quick option. If you choose direct deposit, your refund could be deposited in as little as 10 days. However, you still have to double check your electronic form to make sure everything is filed correctly. You cannot blame tax filing software for any errors that may occur!

5. Hire a Professional
Let’s face it; you’re almost out of time. At this point, hiring a Tax Professional is a wise investment. A Tax Resolution company or reputable CPA can handle complicated returns with ease, keeping you out of trouble with the IRS.

Still Need Help? I’m mentoring on taxes and tax debt every day this week, but I should have a window of time in the afternoon to check my e-mail. If you have any questions, e-mail me. I’ll point you in the right direction.

Real People, Real Solutions to Tax Issues

Finally, here's the first preview from my Million Mile Journey. We introduce you to Lynch Kentucky City Council members, business owners, retirees, and people just like you. We provided Real Solutions for Real People. Take a Look.

Dealing With IRS Debt: You have 5 Options For Giving IRS Debt the Boot

The IRS Offices are closed today, but there's no rest for the IRS-Hitman. If you have any Tax Questions, drop me a line here. I'll be in the office all day.

Get the Facts: There's a lot of ludicrous ideas out there about Tax Debt. So you need to know the cold hard facts. Don't let unreliable people tell you that settling tax debt is “Easy” or that there's “tons” of ways to pay off the IRS. Because it's not true. Working with the IRS is hard. Filling out IRS paperwork is daunting. And there are only 5 real options for handling your IRS Debt.

1. Wait for Statues to Expire:
Bad idea! The statue of limitations on your debt will not expire for 10 years. And sometimes, the statues are extended (like if you file for an “Offer in Compromise.”) And while your waiting for the time limit to expire the IRS can collect on your debt by force with Tax Liens, Levies, and seizures. Don't give them the opportunity to do this. It will not pay to ignore your debt.

2. Pay in Full:
If there is any way you can actually pay in full, do it! Do not submit an “Offer in Compromise” if your have money in the bank to pay for your IRS Debt. Your IRS Hitman has access to your bank account. If they see you have the money to pay, they will tell you to pay in full.

3.Settle It:
The IRS gives you the chance to submit an “Offer in Compromise.” You're are basically settling your debt for a lower amount. Very few people are actually accepted for this program. And barely anyone has their offer accepted for “Pennies on the Dollar.” But if you are in a truly desperate situation, you might want to see if an “Offer in Compromise” is an option for you.

4. Suspend Collections:
If you are in a situation displaying true Financial Hardship, prove it. The IRS might stop the collections process for a limited amount of time so you can get your finances back in order. They will determine the amount of time based on your situation, and check up on you periodically to see if your situation has changed yet.

5. Pay Monthly:
You can pay the IRS monthly. You have to enter into an “Installment Agreement” with the IRS to do this. The IRS will take a close look at all your finances and assets. If you're approved to pay monthly, they choose the amount you pay each month. Then you are locked into a binding contract, stating that you must pay a certain amount monthly. And defaulting can have harsh results.

Still Hope: Sorry if I'm making things seem hopeless. Yes, paying off your IRS Debt is hard. The IRS's system of ruthless Hitmen doesn't help the matter. But there are ways to get your debt taken care of. None of the options I have described are easy to do. But you have to do them if you don't want to remain in debt to the IRS forever

5 Tax Debt Myths: Time for a Reality Check

Be Nimble: There's lots of Myths about the IRS out there. As an IRS hit-man, I've heard them all. And if you took any of these listed Myths as advise you'd be drowning in debt. Read these Myths vs. Realities and arm yourself with a powerful weapon...Knowledge.

Myth #1 If You Never File Your Taxes the IRS Can't Find You!
Reality Check: They IRS will stalk you down like The Terminator stalked Sarah Connor. The IRS is a machine built to hunt you down and they WILL catch you. Your employer is sending your information to the IRS. Your Bank is sending your information to the IRS. And if you work from home and have no Bank Account, there's a Revenue Officer near you ready to hunt you down and seize your assets!

Myth #2 The IRS can't do Anything to you!
Reality Check: Think again. It's foolish not to take threats from the IRS seriously. They're loaded Time Bombs and they'll only deactivate if you efficiently and quickly deal with them. Remember, the IRS is their own Judge & Jury. They don't have to go through a court system before they act on seizing money or assets from you.

Myth #3 Just ignore your IRS debt to make it go away.
Reality Check: “Out of sight out of mind” does NOT apply to the IRS. Procrastination will cost you big time. I've seen debts churn out of control and go from being $2,500 to $10,000 thanks to interest and penalty fees. Ignoring debt will not make it vanish, it will make it grow.

Myth #4 Your Debt can be settled for Pennies on the Dollar.
Reality Check: If it sounds too good to be true, it is. The infamous “Pennies on the Dollar” saying stems from a program called an Offer in Compromise (OIC) by the IRS. The guidelines for this program are rigid and few people qualify. This doesn't stop many companies from telling you that you're 100% Guaranteed to be qualified before they even review your case! If you go with a tax care professional- do your research and choose a business you can trust.

Myth #5 The IRS can't touch your Paycheck or Bank Account, that's Illegal!
Reality Check: Kiss your paycheck goodbye! The IRS can indeed “touch” you bank account and your paycheck with their dreaded Bank Levies and Wage Garnishments. The Bank Levy freezes your account and you get a mere 21 days to settle things with the IRS before they take all of your money. When the IRS Garnishes your wages they take a big percent of your Bank Account leaving you with barely enough to live on. The powers granted to the IRS in the Internal Revenue Code make it entirely LEGAL for the IRS to Garnish your Paycheck and Access your Bank Account.

IRS Tax Debt: Common IRS Tax Problems, IRS Tax Levy, IRS Tax Lien, IRS Asset Seizure

Believe it or not: The IRS has more power than you think. Refuse to pay, and you run the risk of forcing the Tax Man to resort to brutal weapons: The IRS Tax Levy, IRS Tax Lien, and IRS Asset Seizure.

IRS Tax Levy: What to Expect, and How to Stop it

There are two types of IRS Tax Levy, the IRS Wage Levy and the IRS Bank Levy. The IRS will access the debt owed, then send notice of your Tax Debt and a demand for payment. If you ignore this letter, the next letter sent out will be "Final Notice and Intent to Levy". From here, the IRS can yield whichever IRS Tax Levy weapon it desires. The IRS can seize all the funds from you bank account with an IRS Bank Levy, and they can take funds directly from your salary with an IRS Wage Levy (Or IRS Wage Garnishment).

Stop an IRS Levy: The IRS only enacted the Tax Levy because you refused to pay your Tax Debt. If you voluntarily comply and work with the IRS to make a payment arrangement, the IRS should work with you. It won't be easy, and you likely won't get the payment arrangement you want, but it's better than the constant fear of wage levies or garnishments.

IRS Tax Lien: What to Expect, and How to Stop it

IRS Tax Liens are a default when you owe Tax Debt. When you owe a Tax Debt, you have a Tax Lien by definition. Tax Liens simply don't become an issue (or even known to the taxpayer) until the IRS notifies your creditors about the Tax Debt. Suddenly your credit is shot and you can't do anything involving credit.

Stop an IRS Tax Lien: An IRS Tax Lien is there until your tax debt is paid in full. Even when you're making payments, the Lien remains. The IRS does not want to remove a Tax Lien, it's an excellent incentive for you to pay your tax debt. However, you can have a Tax Lien temporarily lifted if you can prove that the Tax Lien is stopping you from paying your tax debt. Show the IRS that the Tax Lien is preventing you from selling your home or getting loan to obtain money to pay off your tax debt.


IRS Asset Seizure What to Expect, and How to Stop it

IRS Asset Seizure: IRS Asset Seizure is the IRS' last resort for collecting on Tax Debt. The IRS sends armed agents to your home with trucks, then they proceed to seize everything of value. They'll take the extra cars, antiques, family heirlooms, anything that can be liquidated to pay for your tax debt. They won't take your only home and they'll leave the clothes on your back, and that's about it.

Stop an IRS Asset Seizure: You have an advantage, the IRS does not want to seize your assets. They do this because you refuse to pay them and they can't reach an agreement otherwise. They seize assets you bought with "Stolen Money" from the government (that's how they see it) and now they want it back. The best was to stop an IRS Asset Seizure is prevention, don't let it get this far. Find any way to pay on the tax debt.

It's hard to get your head out of the sand and face the IRS. But picking up the phone and giving them a call is better than inviting the worst case scenario. If you've received an IRS notice, don't hesitate. Resolve the issue today.

Sisters in California get Six Years in Jail for Tax Fraud

Breaking Tax News- Two sisters living in Southern California have been sentenced to six years in federal prison for defrauding the IRS. Additionally, they've been ordered to pay a lofty $14 Million in restitution to the IRS.

Runs in the Family: The sisters, Karen Berry and Carla Berry were sentenced this Monday. Their father, Matthew Berry, ran a tax preparation business called "N.C.K. Services Inc." He also served time for tax fraud!

The Crime: The Berry sisters pleaded guilty in March 2008 for conspiracy to cheat the IRS out of more than $30 million and helping taxpayers file false tax returns with deductions for mortgage interest, real estate taxes, unreimbursed employee expenses, and charitable contributions.

Taking it Seriously The past couple of years have showed us an increase in harsh action against tax evaders and fraudulent tax preparers. Take this as a warning, be careful about who you trust to handle your tax issues.

Ron Hicks appears on the Eddie Farah Radio Show

Senior Tax Attorney, Ron Hicks, made an appearance on the Eddie Farah Radio Show. I work closely with Ron Hicks, and he does an amazing job every day helping taxpayers in need. He really doesn't stop until he gets the best resolution for his clients. Listen to his radio show appearance, it was a very interesting show this Saturday.

WOKV 690-AM Eddie Farah Show
Download and Listen to the Radio Show

Ronnie Hicks, Senior Tax Attorney answers more taxpayers IRS related questions as a guest on the Eddie Farah Show. Ronnie Hicks gives detailed answers for taxpayers in need.

IRS Tax Question: How Can I Avoid an IRS Wage Garnishment?

IRS Wage Garnishment: Wage Garnishment is a tool the IRS uses to collect when you won't pay. The IRS uses Wage Garnishment to take funds owed directly from your paycheck. The IRS can garnish your salary, bonus, commissions, and even retirement earnings.

Don't Pay: When you refuse to pay the IRS, the have official authority to move on to your wages to collect on your back taxes. The Wage Garnishment can continue until the Tax Debt is satisfied in full, or another agreement has been made to pay the IRS. Either way, it's difficult to handle.

When Wage Garnishment Strikes: The following has to take place before the IRS will Garnish your wages.

1. The IRS has assessed the taxes owed and sends a notice and "demand for payment."
2. The taxpayer ignored the notice or refused to accept liability for the tax debt.
3. the IRS informs the taxpayer with "Final Notice of intent to Garnish" at least 30 days before the Wage Garnishment takes place.

How much? The IRS doesn't have a set amount or percentage it takes out. It has a certain amount it leaves you with, which is rarely enough to survive on. What you are left with depends on your filing status and number of allowable exemptions.

Employer Can't Save You: The IRS sends a notice to your employer's payroll department. They will be instructed to withhold a specific amount of your wages and send it directly to the IRS. The employer has no choice in the matter, if they refuse they will be personally liable for money the IRS does not receive.

How to avoid Wage Garnishment:

1. Contact the IRS immediately after receiving a notice of levy letter. Do not put this off, you only have 21 days to speak with the IRS before a Wage Garnishment could strike!

2. Contact the IRS directly or contact a tax professional. A Tax Professional can negotiate with the IRS to set up the best payment arrangement for you and supply supporting documentation, or you can call the IRS directly and request a payment arrangement.

3. You're at the IRS's mercy at this point. Try to avoid making dumb movies. For example, don't continue to contribute to retirement accounts while telling the IRS agents that you can't afford to pay. That won't fly, they will garnish those funds to satisfy the debt.

Avoid Wage Garnishments: If you recently recieved the IRS "Intent to Levy" notice, act fast! Avoid a Wage Garnishment before it starts, because the IRS won't want to let go of those funds. The IRS Wage Garnishments leaves you with so little on payday that it'll be hard to pay your monthly bills. Face the garnishment and resolve the situation quickly.

Income Tax Penalty: Make an IRS Payment, Remove IRS Penalties with IRS Penalty Abatement

Whether you made an honest mistake or extreme circumstances led to a debt you simply couldn't pay, penalties and interest are often an undeserved punishment for owing the IRS. Fortunately, there are ways to alleviate the penalties and interest that are making your tax debt impossible to pay.


Remove an Income Tax Penalty with IRS Penalty Abatement by proving Reasonable Cause:
The IRS will allow you to Remove IRS Penalties and make an IRS payment for one of the following reasons.

-IRS made and error. The IRS sent you an incorrect refund or wrongfully charged you with a debt before you even made an IRS payment.

-The IRS delayed. If you received a "30-Days" Notice of Demand to make an IRS Payment late, the penalties that accrued for the 60 days could be abated removed with IRS Penalty Abatement. Basically, you can't be faulted for failing to make your intitial IRS payment if the IRS didn't notify you that the IRS Payment was due.

-No Notice. The IRS did not send you notice to make an IRS Payment before applying IRS Penalties and Interest.

-Natural Disaster. If a Natural Disaster caused you to file your taxes late, caused you to lose your tax information, or caused you to miss making an IRS payment, you're a candidate for IRS Penalty Abatement.

3 Steps To Remove an Income Tax Penalty from your Tax Debt
Getting a penalty abatement is easier said than done. Read the following steps before you start.

-Get the Proof: Gather all the documents that support your Reasonable Cause for not making a timely IRS Payment.

-Contact the IRS: Contact the IRS to let them know you want to make an IRS Payment. Also, let them know you want to apply for the IRS Penalty Abatement service and explain your Reasonable Cause.

-Request Abatement: File "Form 843 Claim for Refund and Request for Abatement." This is the Official IRS Penalty Abatement Form that will allow you to Remove your IRS Penalties.

Special Cases: The IRS is very picky about who they allow to apply for IRS Penalty Abatement. You need substantial evidence to proves why you shouldn't have to pay the Income Tax Penalty. The IRS won't accept a lame excuse. Additionally, you still need to make an IRS Payment even after they Remove IRS Penalties from your account. If you feel a little overwhelemed by the whole Income Tax Penalty issue, consult with a Tax Professional. They'll be able to help you remove IRS Penalties and apply for IRS Penalty Abatement with ease.

Answering your IRS Lien, IRS Levy, and IRS Seizure Questions

Tax Problem Help: I've been writing articles on this blog for well over a year now, and I know some of you don't have the time to search through my archives to find the Tax Answers you need. I've done before, but I thought it would be helpful to write a quick article that lists solutions to common IRS debt issues. Consider this a sample platter of debt resolution services.

They Sent me Notice of Intent to Levy! What do I do?
Don't panic, your Revenue Office can smell your fear! There are several programs that the IRS and private companies offer to give you help with your tax problems, but they all have requirements that need to be met.

The Installment Agreement: This is a monthly payment plan that you setup with the IRS to pay off your debt. If you owe more than $10,000, you will want to talk to a tax debt professional to make sure that you are placed into an affordable plan.

The Offer in Compromise: When you hear a late night TV commercial talk about settling your tax debt for pennies on the dollar, this is what they’re talking about. This program sounds almost too good to be true. It is real, but it is also the most difficult to get, since you have to prove that there will be absolutely no money or assets available before the statute of limitations runs out on your tax debt.. Only 2% of applicants for an Offer even get approved.

Currently Non Collectible: If you’re completely broke, or you’re on a fixed income that covers only the most basic living expenses you can qualify for this. Since you have no money or assets the IRS can go after; they temporarily suspend collection activities. The IRS does check up on you every year and if your financial situation changes, they will renew their collection efforts.

Innocent Spouse: Normally if you marry someone you also marry their tax debt. However there are exceptions to this situation and you can get out of a debt created by your ex-spouse. The tax debt has to be your ex’s and you have to have not known about it. The debt can also be erased if there was abuse. You may wind up not being liable for some or all of the tax debt.

Penalty Abatement: When you get in debt to the IRS interest and penalties start adding on to your debt immediately. In fact your debt will increase by about 25% each year. If you’ve suffered a catastrophic event in your life you may qualify to have the penalties removed from your debt. This can reduce your debt by up to 30%.

A light at the end of the Tunnel. Being in debt to the IRS makes you feel overwhelmed and alone, but now you know there’s a possibility for hope.