The IRS Hitman Movie Premier will be held Right here in Jacksonville

Everyone is invited to the IRS Hitman Movie Premier at 5 Points Theater this Friday on June 6, 2010 at 4:30PM

The IRS Hitman Reality TV Show Premier that takes place right here in Jacksonville at 5 Points Theater! It’s a Big Screen, Hollywood Style, Red Carpet premier with the opportunity to Win a Free I PAD after the show!

The IRS Hitman and his Hitsquad are available on the web, follow us on:

- Facebook

- Twitter

- Ustream TV

We're incredibly excited to premier this show on June 6, 2010 at 4:30PM. I hope to meet many of my local readers at the premier. More details will be available in the coming weeks.

The IRS Path to Resolution

I gave a quick speech on "The Path to Resolution" with the IRS this morning. Just like I do with this blog, I always tell it straight. There's no easy, fast answers with the IRS after you owe Tax Debt. The process of removing Tax Debt is long, difficult, and stressful, but it's not impossible.

Step 1, Compliance: The first thing that has to happen is Tax Preparation, is the file in compliance? If not, the IRS will send it back to you and ask for all the tax years you're out of compliance for to be filed. This can be incredibly difficult when you no longer have all of the documents to do this.

Step 2, Finances: The IRS wants to know everything about your financial situation. They want to determine why you're not paying them, and how much you can pay them. They want to see your electric bill, mortgage, car statement, the works.

Step 3, The Waiting Game: For most people that owe, a manager personally has to review every file. This is incredibly time consuming, it could be weeks or months before you get a response. Sometimes the manager will send a letter requesting MORE documents to prove your financial situation, and that long process starts all over again. When you don't work with a professional, you have to expect these kinds of delays.

Step 4, The Sentence: After everything is accounted for, the IRS determines how much you will pay from here. Here at our offices this is our cue to speak directly with the manager or revenue officer to prove the financial situation and work out the lowest payment. It's not impossible to negotiate on your own, just be sure to do some extensive research before hand.

Step 5, The Resolution: Once you know how the debt will be resolved (monthly payments, settlement in monthly payments) it's your job to hold up your end of the deal. Make the monthly payments on time, work your hardest to raise funds, do what's required of you. You don't want to make a bigger mess with the IRS.

The Perilous IRS Journey: Of course, this is oversimplifying a bit, but I want taxpayers that owe to get an idea of the kind of work they're looking at when they start on The Road to Resolution. There will be delays, it will be hard, but it's not impossible with persistence.

Everything Your Need to Know About IRS Statutes

Free at Last: Ten long years have passed since the IRS first discovered your Tax Debt. Somehow, you've made it this far without being levied, bullied, and laid to rest. But now the IRS can't collect from you anymore! Right?

Actually, They can.

Contrary to popular belief, the IRS can continue to collect after ten years have elapsed on your tax debt.

It Starts: The IRS ten-year statute of limitations period starts when the IRS officially determines you owe the debt. After ten years, your IRS case is closed and it becomes illegal for them to contact you regarding the debt. But there are several ways the Statue of limitations can be extended.

The following will extend the Statute of Limitations on your Tax Debt:

-Filing An Offer in Compromise

-Being in litigation with the IRS

-Request a Collection Due Process Hearing

But wait, there's more:

-Federal Lawsuit: If the IRS sues you the statutes can be extended

-Signing a Waiver: Signing a waiver might be required for things like setting up an Installment Agreement with the IRS.

The general rule of thumb is this, any action that puts your IRS Case on hold will extend the statutes. Otherwise, the IRS is losing years to collect their money.

And don't forget about Bankruptcy:

-Ch.7 Bankruptcy: this will extend the statues by 1 year on average

-Ch. 13 Bankruptcy: this will extend the statute of limitations by 5 years plus another 6 months for good measure!

Post Expiration: The IRS has been known to call individuals after their Statute of Limitations have expired. Most of the time, the taxpayer doesn't even know the statutes have expired! If you know you've been paying on your debt for years, double check to make sure you're not paying what you don't have to.

Filing Deadline for Small Charities

IRS Commissioner Douglas Shulman has released a statement on the filing deadline for small charities:

Now that the May 17 filing deadline has passed, it appears that many small tax-exempt organizations have not filed the required information return in time. These organizations are vital to communities across the United States, and I understand their concerns about possibly losing their tax-exempt status.

The IRS has conducted an unprecedented outreach effort in the tax-exempt sector on the 2006 law’s new filing requirements, but many of these smaller organizations are just now learning of the May 17 deadline. I want to reassure these small organizations that the IRS will do what it can to help them avoid losing their tax-exempt status.

The Low-Down:

The IRS will be providing additional guidance in the near future on how it will help these organizations maintain their important tax-exempt status — even if they missed the May 17 deadline. The guidance will offer relief to these small organizations and provide them with the opportunity to keep their critical tax-exempt status intact.

The IRS urges you to file- even though the May 17 deadline passed.

Filing a tax return for the small organizations isn't as hard as you think. It just takes a few minutes to fill out the electronic notice Form 990-N (e-Postcard). This is available for small tax-exempt organizations with annual receipts of $25,000 or less.

More IRS Insider Truth About Offer in Compromise

"Settle your Tax Debt for Pennies on the Dollar..." You’ve seen it on TV commercials and heard it on the radio. This program is called an Offer in Compromise (OIC). True, you can settle your Tax Debt for less with an Offer in Compromise. But it's not like settling your credit card debts. Settling Credit Card debt is easy, settling Tax Debt is next to impossible. But why?

Offer in Compromise, the Reality: The Offer in Compromise is based strictly on your ability to pay and the IRS’s ability to collect. It is 100% financially driven. What does this mean? If you can pay, the IRS will collect the full amount, not a settlement amount. Period.

Monthly Disposable Income: The IRS has a formula for determining if you qualify for an OIC. How much you have left over after you pay off your bills is your "Monthly Disposable Income," or MDI. MDI is where a lot of you will fall short, here's why:

Your housing/utility costs should not be over the IRS National Standards.

What's that mean? Let's say the National Standard for Mortgage/Rent in your area is $1,800, and you're paying a whopping $5,000. The IRS is going to count the difference, $3,200, as monthly disposable income! This means even if you're paying that $3,200 to keep a roof over your head and you only have $1,000 left over every month, the IRS will want you to pay over $3,200 per month to settle your Tax Debt.

But Why!? The IRS doesn't want you paying so much for housing that you neglect your tax obligations. And they certainly don't want to encourage taxpayers to raise their housing costs to lower their MDI and reduce tax payments. The IRS can't reward this type of behavior.

And Finally... IRS employees really don't want to settle your tax debt! They pay their taxes on time every year (or they'd be fired) so why shouldn't you?

What can I do? The odds are stacked against you. Before you consider submitting an Offer, make sure you even qualify. And if you qualify, consider working with a professional.

Wanted by America, the IRS (+) Hitman Reality TV show is Here!

Premiering Full Throttle June 6 on IRS-Hitman.com! Produced right here in Jacksonville, The IRS Hitman’s premier episode is screening June 6, at 4:30 pm at the 5 Points Theater!

Jacksonville native filmmaker Don Campbell, Producer of the “IRS (+) Hitman,” describes the 30 minute Reality Drama as a cross between “Intervention” & “Extreme Home Make Over.” The show features a real life Ex- IRS agent, who one day realized he could no longer be apart of an organization that destroyed peoples lives; that it was time to become the IRS (+) Hitman for the American People.

Join us at the historical 5 Points theater in Jax, on Sunday, June 6 at 4:30 for this special premier event. Meet the cast of the show, hear Music by Jonra, and have a chance to win a free IPAD at the end of this very special event!
Seating is Limited with a Special Red Ribbon VIP Section for Press available, so RSVP is recommended.

Don’t Miss this special event premier of the IRS (+) Hitman!
RSVP at HitsquadIRS@gmail.com
For Additional Press Inquiries contact
Don Campbell
Producer
904-200-5453

Visit: http://www.IRS-Hitman.com

Swimming with the Sharks: How the IRS Can Ruin Your Life

Jaws: A full-grown Great White Shark can bite down with a pressure of up to 6,000 pounds. Rumor has it, that IRS Revenue Officers bite even harder; and evidence has shown us just that. With the economy failing, and more taxpayers slipping into debt, the IRS Sharks are circling like never before. And they’re waiting for you to make the one false move that will land you right in their jaws.

Stay Out of the Water: Chances are, you’ve known about this for awhile. If the IRS is ready to bite, they’ve probably already sent a few warning signs. These usually come in the form of three certified letters. The first letter will kindly outline what you owe and give you a due date. The second letter will be a little harsher and will tell you they will take action if you do not pay. By the time you get the third letter, they’ve probably already attacked.

The Mouth of the Monster: Much like a shark, it’s pretty hard to get and IRS Revenue Officer to let go once he’s taken his first bite. But an IRS-Hitman won’t take your arm or leg; he’ll do a lot worse. If you’ve gotten your third letter you’re going to face a lien, a bank levy, or in worst case scenarios a wage garnishment. If you’ve ever visited my blog you know a little about what these are. But for those of you have not:

Tax Lien: This is basically a black spot that can royally mess up your credit. It not only prevents you from using your credit while it’s on, but even after it is removed, it can take years to rebuild your good credit

Bank Levy: When this happens, the IRS talks to your bank and you are frozen completely out of your account. You can’t withdrawal any money, you can’t use your debit card, and worst of all, there’s nothing you or your bank can do about it.

Wage Garnishment: Rather than attacking your credit or your bank, the IRS goes straight to the source: your paycheck. They will contact your employer and demand your paycheck! You will only receive a small portion of your paycheck, which many find cannot cover their basic necessities.

Feeding Frenzy! If any of these things happen to you, the IRS is probably enjoying every minute of it. Their job is to get their money and they’ll do it by whatever means necessary. If this means putting you out on the street or keeping you from feeding your children, it doesn’t really matter. This is why you have to stay on top of your filing and make sure if you ever owe, pay it off as soon as you can.

Now you have the Smoking Gun…Use It!

More Hard Truths on Tax Debt

The Truth hurts. But somebody has to say it. Every day when I check my inbox I have to dispell more and more IRS Myths. Here's a quick run-down of the common myths I hear, and the harsh realities.

"Settling your Tax Debt is a simple process"...
This goes along with all of the other "Pennies on the Dollar" Tax Debt Settlement nonsense. An IRS Tax Debt Settlement is known as an Offer in Compromise. There is no quick and easy way to apply for an Offer in Compromise with the IRS.

The Facts:

• Only a small percentage of people qualify for an Offer in Compromise. There are a strict set of guidelines to adhere to.
  
  
• It can sometimes take up to 3 years for a Tax Debt Settlement to be approved.
  



• The IRS advises taxpayers not to submit an Offer in Compromise until other Tax Debt payment options were considered. The Offer in Compromise should be a last resort option.
  



• The Offer in Compromise is expensive to apply for ($150, minimum in most cases), and it will not save you money if you are not approved.

"You can just call the IRS and pay them a little each month"...Here's a verbatim quote I heard from a friend, "Don't worry about the IRS, just agree to pay them $5.00 per month and they'll just leave you alone." HA! That's a good one, friend. You can't even pull off $5.00 a month with your aggressive creditors, why the hell do you think the IRS would take $5.00 per month for your tax debt?

The Facts:

• The IRS DOES accept monthly payments, this is known as an "Installment Agreement"
• Installment Agreements are binding contracts, you MUST pay monthly. Or else!
• The IRS chooses the amount you pay based on your disposable income- how much money you have left over at the end of the month after all expenses are accounted for.
• Interest and Penalties continue to accrue on the account durring the Agreement.

"The IRS will automatically stop collecting on your Tax Debt once the statutes are up"...

From personal experience, I can tell you that the IRS has continued collection actions on accounts that the statutes are supposed to be expired on. If your Tax Debt is 10 years old or older, it's illegal for the IRS to collect on it. But beware, the following actions can extend the amount of time the IRS can collect on your Tax Debt.

• Filing for Bankruptcy
• Submitting an Application for an Offer in Compromise

Watch Out: A lot of so-called Tax Resolution companies might tell you that you can settle your tax debt for "pennies on the dollar" or pay the IRS practically nothing to the IRS. These are bogus statements, especially if they can tell you this without knowing your accoutn details. Be careful when selecting a company to work with.

Stop Wage Garnishment Once and for All

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!

The Truth about Tax Debt Settlements

Qualifying for an Offer in Compromise requires a thorough investigation I often speak on Tax Debt Settlements, known as "Offer in Compromise." Taxpayers continue to believe that this is a simple process. I'm here to set the record straight.

It's incredibly difficult to qualify for an Offer in Compromise. The IRS will perform an incredibly thorough investigation. This is the most thorough financial background check that is performed by the IRS. They won't sacrifice thousands without exceptional cause! Here's a few things they consider:

Can you pay the debt in full before the statutes run out? If the IRS determines you can pay the debt (even in installments) before the statutes run out, your Offer will not be approved.

Projected Income & Potential: You may be unemployed now, but you could be making $100K when you find work again next year. The IRS will look at the income you've made before and consider the income you'll make in the future, when you apply for an Offer in Compromise. This means you can be broke now, but still have to pay!

Assets and Savings: If you have vacation homes, yachts, etc; the IRS will determine the market value for these assets. When you receive your Offer in Compromise rejection letter, you'll see the IRS' determination that you can pay the debt in full (or more than the debt amount!) and they will list each asset and it's market value. If you're living big without paying the IRS, expect to pay big.


But there's hope. If there is no way you could pay your tax debt in full before the statutes run out, the IRS may allow you to settle. If you think you qualify, use IRS Form 656 Offer in Compromise, or work with a reliable CPA or Tax Resolution Professional. With help, you could Settle your Tax Debt and save thousands.

Remove IRS Penalties with Penalty Abatement- Always worth a try

Killing you Softly: Penalties and Interest fees are devastating. More than punishment, these outlandish fees are a lucrative source of income for the IRS. If you want to keep your finances from being swallowed by ever-increasing tax debt, know your enemy- the dreaded IRS Penalties.

The Penalty Box

Accuracy Penalties: The IRS can add a 20% penalty if they find you understated your income tax liability.

Fraud Penalties: If you fraudulently underreport your income the penalty is 75% of the underreported amount.

Failure to Pay Taxes Penalties: This penalty starts on April 16 for the unpaid amount. Half a percent is added every day that your tax debt goes unpaid.

Late Filing of Return Penalties: The IRS can impose a penalty of 5% per month based on the the tax balance due, up to 25% total.

Combined Penalties: The IRS can impose a combined penalty of 5% per month for up to 5 months.



Stop the Bleeding: Apply for Penalty Abatement.

Penalties will grow unless you stop them. If you apply for Penalty Abatement you can stop the penalties and reduce your debt by thousands of dollars. But first, you have to qualify.

Qualifications- Reasonable Cause for Not Paying Penalties

- Serious illness of you or a family member.
- Unavoidable absence
- Business Records destroyed (by fire or other cause)
- Taxpayer's ability to make deposits or payments impaired by civil disturbances
- Lack of funds applies, but only when you can prove lack of funds occurred despite exercising ordinary business prudence.

Other explanations may be acceptable, but you have to prove you exercised ordinary business care.

Fight Back - How to request Penalty Abatement.

- Fill out IRS form 843, “Claim for Refund or Request for Abatement.”
- Include copies of documents that prove your case.
- Make copies of any letter you send to the IRS.

Warning: Convincing the IRS that you need Penalty Abatement is incredibly difficult, even for the professionals! A penalty abatement should be used in addition to a formal tax resolution. Talk to a tax debt professional to make sure that you are placed into the best possible situation.

Caught? How to Get Out from Under Tax Debt

Troubled Waters: If you’re reading this, it probably isn’t the first time you’ve thought about your IRS tax problems. It’s probably not the first time the IRS has thought about them either. If you’re facing thousands of dollars in back tax debt, it is not a time to panic. It is time to take a deep breath, asses the situation, and learn what exactly you can do. But in order to understand how to face the debt, you must understand how it happened.

To Do List: When it comes to priorities, filing your IRS taxes isn’t always on everyone’s mind. As a matter of fact, with all the things you’ve got going on, it’s probably one of the last things you even think about. With bills, appointments, activities, grocery shopping, car troubles, school supplies, gas prices, etc. You’ve got more than enough on your mind. But the IRS doesn’t care about those things; all they want you to do is file your taxes.

Why so Serious? Filing with the IRS is a major deal to them. Take it from me, a former IRS-Hitman; nothing makes them angrier than taxpayers who don’t file. The penalties for not filing are outrageous: from paying a large amount in penalties and interest, to serving time in jail! Now you might be thinking that even if you don't pay, as long as you file, you’ll be okay. But even though filing is the most important thing, the IRS will come down on you with an Iron Fist if you continue to avoid the debt.

Carry a Big Stick: The IRS has tons of ways of collecting on the back taxes that you owe. The worst part is, all of them are completely legal. They can put a lien on your credit, which basically means you can’t do anything you would normally use credit to do; apply for a loan, buy a car, etc. They can implement a bank levy, which takes all current funds from your bank account and freezes you out until the debt is paid or arrangements are made. They can also garnish your wages, which means going straight to the source of your income…your paycheck!

Who you gonna Call? The worst part about all this mess is that you have no idea what you’re dealing with. The IRS is a complicated system and they like it that way. The less that taxpayers know, the more an IRS-Hitman can take advantage of them. So it’s best to contact a reliable tax professional. Whether you owe $10,000 dollars or $1,000,000 dollars, there is help available to you. In the next segment, I’ll tell you who to look out for, and who to trust when it comes to tax resolution.

Top 3 Thing You Should NEVER Do With Your Taxes

Be Prepared: Most people learn more from their mistakes. But you don't want to make a mistake when it comes to IRS Issues. Here are three key things you should NEVER do when handling your IRS Tax Issues.


1. Get to it “Later”
Procrastination will drain your bank account. The IRS adds interest and penalties for every month your IRS Debt goes unpaid. Put it off long enough, and the IRS will be forced to use their collection methods against you. That's right, the infamous IRS Liens, Levies, and Seizures.

2. Fail to Proofread
Even tiny mistakes can cost you big when it comes to IRS Issues. For example, when you submit Form 656 “Offer in Compromise” you have to pay a $150 dollar application fee and 20% of your offer. If you make a mistake both of those payments are non-refundable! Double check every section of an IRS document before you submit it! Common errors include:

-Leaving questions blank
-Not including supporting documents with forms
-Omitted your signature where needed

3. Neglect to File
Every year people refuse to file their taxes. They rationalize, “I can't pay my taxes this year, so I shouldn't file!” Bad idea. Failure to file is illegal. And although few people are thrown in jail, the maximum sentence you can face for failing to file your taxes is 3 years. If you are taken to court for failure to file, you will be held responsible for court and Attorney fees. If that doesn't convince you, check out some more reasons why you MUST file every year:

-Late filing penalties and interest will make your debt skyrocket out of control from the IRS creating Substitutes for Return for those years and adding on penalties and interest.

-You will not qualify for Penalty Abatement or an Offer in Compromise or any Tax Resolution...if you're not current with your tax filing.

-You can lose your promotion, or your job, for not being up-to-date with tax filings.

Final Tip: What will happen if you're already guilty of one or all three of these deadly offenses? It's never too late to fix your tax debt issues, just follow step one and get to it NOW.

A Tax Break for Erotica- Do You Think It's Fair?

A while back, a New York dominatrix named Ann Marie Coughlin ("Domina M.") donated her brushed-steel bondage machine to the Museum of Sex in Manhattan. The Museum of Sex weren't the only ones to benefit from their new piece, Ms. Coughlin also got a tax deduction out of the deal. But there's still a fierce debate surrounding this type of tax deduction- many thing erotic items don't deserve a tax deduction.

The Real Issue: The real debate, though, is that the Museum of Sex is not a tax-exempt organization, it's a for-profit company. But The Museum of Sex does take advantage of a certain IRS loophole to get around this. They have a tax-exempt affiliate, the Muse Foundation of New York, which takes in tax-deductible donation for the museum's collection. Under the tax code, private companies are allowed to have dealing with nonprofit organizations the are affiliate with.

What the IRS Says: Bruce I. Friedland, a spokesman for the IRS had this to say, “Where concerns occur, the issue is whether the tax-exempt organization is operating for the substantial private benefit of the for-profit entity."

What Do You Think? Personally, I so no cause for alarm or debate regarding these donations. But what do you think? Do you think it's fair or shifty?

First-Time Homebuyer Credit- Did you Miss it?

The First-Time Homebuyer Tax Credit was extended and expanded November, 2009. At the same time, the requirements became more stringent and more documentation is now needed to claim the credit. If you act quickly, you still have a chance to claim the First-Time Homebuyer tax credit this year, but the IRS is increasing their compliance checks, so be sure to have all necessary documentation if you don't want to slow down your tax refund!


For Qualifying Home Purchases in 2010

For qualifying purchases in 2010, you have the option of claiming the credit on either your 2009 or 2010 return.

First Time Homebuyer Tax Credit Deadlines

- You must have bought — or entered into a binding contract to buy — a principal residence on or before April 30, 2010.

-If you entered into a binding contract by April 30, 2010, you must close (go to settlement) on the home on or before June 30, 2010.

Filing Requirements for your 2009 Tax Return

Because of the documentation requirements for claiming the credit, taxpayers who claim the credit on their 2009 tax return must file a paper — not electronic — return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit (see the instructions for help with the form), and a properly executed copy of a settlement statement used to complete the purchase.

- Purchasers of conventional homes should include a copy of Form HUD-1, Settlement Statement, or other settlement statement, showing all parties' names, property address, sales price and date of purchase.

- Purchasers of mobile homes who are unable to get a settlement statement should include a copy of the executed retail sales contract showing all parties' names, property address, purchase price and date of purchase.

- Purchasers of newly constructed homes where a settlement statement is not available should include a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.