Rapper Method Man Pleads Guilty to Tax Evasion, Pays $106K

Another one Bites the Dust: Yet another celebrity joins the long list of Tax Evaders. Rapper Method Man (Real Name, Clifford Smith) was recently busted on felony tax evasion charges. He owed a loft $106,000 in back taxes, but recently made the final payment of $40,000.

Smith’s attorney Peter Frankel blamed the tax problem on the rapper’s previous accountant, who has been replaced. He said that once the performer learned about the tax debt, he hired a new accountant and paid his debt.

“Failure to pay your taxes is not a victimless crime,” said Richmond County District Attorney Daniel Donovan Jr. “In these days of massive budget shortfalls and service cuts, tax evasion is a crime against all New Yorkers. Whether you are a celebrity or an ‘Average Joe,’ you will be investigated, arrested and prosecuted.”

The Tax Man Cometh: In a previous entry I warned that the IRS is starting to send out Tax Debt Notices. Soon you may be surprised by an Official IRS Notice in your mailbox. Now is the time to take the initiative and take care of your tax issues before the IRS finds you. It's much easier to get help and solve the issue now than to let it escalate and grow out of control.

Watch Out: The IRS Notices Are Coming

IRS Notices will soon be dispatched. Suddenly, taxpayers will receive critical notices from the IRS warning them of their IRS Debt or IRS Tax Issues and demanding payment of their debts. And you know the IRS wants their money back ASAP. Here are the top forms to look out for:

CP 297- This is the IRS Notice of Levy and Notice of Your Right to a Hearing, it's a notice that strikes fear into the hearts of many. If you’ve received IRS Notice CP 297 in the mail you may have ignored some of the IRS’s previous attempts to contact you.

Now they are notifying you with CP 297 that they intend to levy you and are notifying you of your right to a hearing as required by federal law.

CP 49- Notice CP 49 Overpaid Tax Applied to Other Taxes You Owe is sent to inform you of an overpayment on one of your tax accounts. The form lets you know that you overpaid the IRS and all or part of the overpayment will be applied to other taxes you owe. So what exactly is this “overpayment”, you ask?

It’s your Tax Refund. That’s right, this Tax Notice was sent out to inform you that your Tax Refund is being applied to other taxes that you owe the IRS from prior years.

CP 523- This is Notice of Intent to Levy- You Defaulted on Your Installment Agreement. The IRS takes it very seriously when drop out of the installment payments set up prior.

They send this notice to let you know they will forcefully levy the funds from your wages or bank account if you refuse to pay. You might not be able to set up the cushy payment arrangement you had before without professional help at this point.

Contacting Professionals for IRS Notice Help

One of the best things to do when you receive an IRS Notice in the mail is to contact a Tax Professional immediately. Working with a tax debt professional is a good bet when you owe the IRS and you don’t know what to do or where to turn. They know the ins-and-outs of your tax debt situation and have all the solutions you need.

BP Fishermen Reimbursement Payments will be Taxed by the IRS

The IRS's new Gulf Oil Spill Information Center on their website has finally shed some light on tax treatment for oil spill victims. Those who receive BP payments for income lost will be required to pay money on these payments come tax time.

Although compensation paid for physical injuries or property loss caused by the oil spill is listed as nontaxable, it's still a blow to some that income to replace wages will be taxed by the IRS.

For gulf residents who have questions about how the IRS will handle payments from BP, the agency also announced that it will launch a hotline and hold a Gulf Coast Assistance Day on July 17 in seven cities: Mobile in Alabama; Panama City and Pensacola in Florida; New Orleans, Houma, Baton Rouge in Louisiana; and Gulfport, Miss.

“This is a very difficult time for many people affected by the oil spill in the Gulf of Mexico. As residents of the region cope with the evolving situation, I want to assure them that the IRS will be doing everything it can to provide tax help to those who need it,” IRS Commissioner Doug Shulman said in a statement.

Fishermen's BP Cause Big IRS Trouble

 It starts...Fisherman who intend to file claims against BP for the oil spill in the Gulf of Mexico are facing serious tax peril. This isn't because they shouldn't file claims against BP- which has an established $20 billion escrow account to handle legitimate claims- it's about tax evasion, which is rampant among fishermen in the area.

The problem is that many are paid in cash, and many didn't know they had to file their earnings.

"Many Vietnamese and Cambodian fisherman live on their boats and don't speak much English," said Jerrold Parker, New York Attorney and former IRS Agent at Harris Martin Publishing's Oil Spill Litigation Conference "They pay for their supplies in cash, for their bait in cash and their gas in cash."

Fishermen have already run into issues when BP requested their tax statements. Luckily, there are ways for fisherman to prove their income without their tax returns with receipts and invoices from transactions. However, doing this can invite an IRS auditor to follow their trail to nail them for tax evasion. So what's the best option to take?

Coming Forward... Come clean to the IRS. If you're unprepared use a tax professional like a tax resolution company, an accountant, or a CPA, but whatever you do, it's time to come clean to the IRS.

If you haven't filed before, it's time to start filing your taxes and get caught up. You can do this on your own, but it's not easy without help form a professional. Hopefully the back taxes, interest, and penalties won't be more than the BP claim!

Audits Reveal Thousands Wrongfully Received Homebuyer's Tax Credit

A recent government audit has revealed thousands of individuals have fradulantly claimed the first-time home buyer's credit. Somehow, the IRS managed to miss them all. These fradulent claims ( some, strangely enough, filed by prison inmates serving life setences) have totaled to about $134 million, according to the Treasury Inspector General for Tax Adminstration. 

Here are some more curious stats:

- False claims filed by 1,295 prison inmates added up to about $9.1 million on 2008 returns.

- Florida prisons generated the highest number of claims - 61 percent of all prisoners serving life sentences who received the credit were incarcerated there.

- Some of the "questionable claims" for refunds were made by 87 IRS employees nationwide, according to Michael R. Phillips, the deputy inspector general for audit.

- The IRS updates its prisoners list annually. Some of the prisoners who filed for the credit were committed to prison between the updates, although a check found that 86 of a 306-inmate sample who claimed the credit did appear on the IRS list.

- Among filers outside of prison, 256 used the same five addresses for their claims. In fact, 18,832 filers used just 7,695 addresses to claim a total of $134 million in refunds.

- Of the 18,832 filings, 5,331 were filed by 1,941 paid preparers, the audit found.

- The audit also found that about 2,500 taxpayers erroneously received a total $17.6 million in credits for houses they bought before the tax credit took effect.

- The first of three tax credits was approved in July 2008. It was an interest-free loan that offered $7,500 to qualified first-time buyers that would be repaid to the Treasury in $500 increments over 15 years.

- The second, with a maximum of $8,000 for first-timers, did not need to be repaid. It was approved in February 2009 and expired Nov. 30.

- On Nov. 5, the tax credit was extended, and a maximum $6,500 added for qualified buyers who had not purchased a primary residence in five years or more.

The extension expired April 30, although buyers have until June 30 to close on their purchases. That deadline is likely to be extended to Sept. 30 because 180,000 qualified buyers cannot meet it.

Former Company Controller Sentanced to 36 Months in prison for Tax Evasion

Surprise, surprise... a former controller for "Vinyl Tech Window Systems", Pamela Blodgett, 57,  was sentenced to 26 months in prison and ordered to pay the IRS $570,000 in restitution for taxes she didn't pay to the IRS...on money she embezzled from the company!

According to U.S Attorney Barbara McGuade, Pamela Blodgett was sentenced in Federal court in Detroit by Chief Judge Gerald Rosen. She pleaded guilty to filing a false return for 2003.

The Perfect Crime: Court records reveal that Blodgett embezzled a massive sum of more than $1.7 million. Having the authority to issue checks she ran the funds through Valley Lawn Maintenance, a company owned by her husband. Blodgett attempted to conceal the money by using false entries and padding the record books by listing legitimate vendors as payees.

Caught by the IRS: Pamela Blodgett may have gotten away with her embezzlement scheme, but she underpaid the IRS by $570,000. The IRS doesn't go easy on anyone who underpays their taxes. This is yet another case of a criminal being caught by the Taxman before the Lawman.

IRS Special Agent Maurice Aouate adds, "No matter the source of your income, even if it's stolen or illegal, it remains taxable. IRS Criminal Investigation will vigorously investigate any individual who knowingly and willfully evades his or her tax obligation."

That's right, criminals. Not even you are safe from the Taxman. IRS Criminal Investigation is coming!

Can't Pay the IRS? Declare Financial Harship (Currently Non Collectible)

Can't Pay? Don't pay! If there is no feasible way to pay your IRS Tax Debt, you can declare Financial Hardship to stop their fierce collections efforts. Although this is usually a temporary reprieve, it is still a valuable tool for taxpayers in desperate situations.

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

• Rent/Mortgage Payments
• Food Expenses
• Utilities
• Gas/Transportation
• Medical Bills/Expenses
• Basic Clothing

Who Qualifies for Currently Not Collectible Status (CNC)?

According to a Report issued by the IRS on January 6, 2009, IRS employees will have greater authority to suspend collection actions in certain hardship cases where taxpayers are unable to pay. This includes:

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

Applying for Currently Not Collectible (CNC) Status

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

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

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

Temporary Reprieve

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


Case Denied
Despite the IRS’s recently claims to ease the burden on the Taxpayer, collection efforts have increased. This means it will be harder to be approved for Currently Not Collectible status unless you display exceptional need. Consider working with a qualified professional to increase your chances of getting your case approved.

Top Quality Standards for a Tax Resolution Company

Many of the e-mails I receive are bound by a common thread- people have received professional help before and were burned by an unreliable company or law firm. Don't be fooled again; use these tips to help find the company that offers the best service.

BBB Rating
Choose companies that meet the Better Business Bureau's official standards for accreditation. Make sure they have an A Rating or higher and no unresolved complaints.

Dun & Bradstreet
Make sure the company adheres to Dun & Bradstreet’s highest quality standards. Dun & Bradstreet is the world’s premier source of commercial information and insight on businesses.

Stability
How long has the company been in business? You should look for a company that has been established for at least 10 years.

U.S Chamber of Commerce
Look for companies that are official members of the U.S Chamber of Commerce.

Customer Service is #1
If the Tax Resolution company is not putting you and your needs as their number one priority, go elsewhere. Make sure you know the company treats you like a human being before you simply give away your money to a company that is not interested in giving you results.

Not sure on how to find the answers to some of this information? Ask! If they refuse to answer the question or don't know how to answer it, run the other way! Don't be afraid to shop around before you make your choice.

More IRS Payment Plans When You Can't Pay in Full

If you owe the IRS, there’s no time to lose- you have to start paying voluntarily or the IRS will take the money by force. If you call the IRS directly you’ll learn they only want to talk about one thing, and that’s how soon you can pay in full! (I should know from experience!) But that’s not your only option. You can pay the IRS in monthly installments or in partial payments.

IRS Installment Agreement
Much like how you pay on your credit card debts, you can pay the IRS in monthly payments. However, there are some key differences. You decide how much you pay creditors, but the IRS determines the amount you’ll pay them monthly. They do this by taking a close look at your financial situation and determining your disposable income. So making a valid case when you apply for an Installment Agreement is a must. Additionally, the amount you pay monthly must satisfy the entire tax debt within three years. In order to apply fill out IRS Form 9465, Installment Agreement Request.

IRS Partial Payment Installment Agreement
In a Partial Payment Installment Agreement, the taxpayer makes regular monthly payments to the IRS, but the payments do not pay off the tax debt in full like the classic Installment Agreement is intended to. After the terms of the Installment Agreement are fulfilled, the remainder of the IRS Tax Debt is forgiven. Although requesting a Partial Payment Installment Agreement with the IRS is easier than submitting an Offer in Compromise, it’s still tricky. First, you need to write a letter stating your request for a Partial Payment Installment Agreement and submit it to the IRS along with IRS Form 9465 and IRS Form 433-A. Consider consulting with a qualified professional to help you with these steps.

Paying in Full When you Don’t have the Cash
Taking out a loan at the bank to pay your IRS debt is a good way to stop interest from accruing on your account. Even if your credit is in trouble you can still qualify for a loan and decrease your Tax Debt. A Bank Loan is cheaper than an IRS Debt. Penalties and Interest on Tax Debt are a lot higher than a loan from a bank. A typical Bank Loan, if you can get one, is around 6.5% interest versus Penalties and Interest on an IRS Debt which is usually 8% compounded daily. If you have the option to pay your Debt in Full with a Bank Loan, you should consider this solution.

If there is any way possible for you to pay your Tax Debt in full, consider that solution as a priority. Remember, penalties and interest continues to accrue on your Tax Debt when you choose to pay with an Installment Agreement. You’ll be saving money in the long run if you borrow money to satisfy your debt.

Tax Tips for Summer Jobs and How to Avoid IRS tax Debt

Summer Time is in full swing, and most students are working a summer job. The pay may be meager, but greedy Uncle Sam still wants his cut. Here's the top 7 things the IRS wants everyone to know about income earned while working a summer job:

1. Fill out a W-4: Form W-4 is used by employers to determine the amount of tax that will be withheld from your paycheck. This is a good thing, because if you were holding on to the money that should go to the IRS, you'd probably spend it.If you have multiple summer jobs, make sure you have a W-4 for each job.

2.About Tips: Sorry, tips are taxable income according to the federal government. You need to report all tips as income to the IRS.

3. Odd-Job Income: Students often perform odd jobs for extra cash over the summer (e.g., mowing lawns, babysitting.) You're probably not making much, but the IRS wants a cut of the income you make from these odd jobs. In case you're wondering, the IRS will find out how much income you've earned from your bank account. Your bank reports your earnings annually, and if it doesn't match with what you reported, you're busted. If you want to avoid that whole mess you could stimulate the economy and spend the money instead of saving it. (But you didn't hear this from me, kids.)

4. Self-Employment Tax: If you earn a net $400 or more from your business, the IRS wants you to pay self-employment tax. This tax pays for your benefits under the Social Security System. This is done on Form 1040, Schedule SE.

5. Military Training: According to the IRS, subsistence allowances paid to ROTC students participating in advanced training are not taxable. However, active duty pay – such as pay received during summer advanced camp – is taxable.

6. Special rules apply to services you newspaper carriers or distributors. The IRS will consider you a direct seller if:

• You are in the business of delivering newspapers.
• All your pay received directly relates to sales, not the number of hours worked.
• You perform the delivery services under a written contract, which states that you will not be treated as an employee for federal tax purposes.

7. Finally, Some Good News: In most cases, newspaper carriers or distributors under age 18 are not subject to self-employment tax.

The IRS Hitman Reality TV Pilot in the Jacksonville Business Journal

The Jacksonville Business Journal wrote an extensive story about the IRS Hitman Reality TV Show Pilot Premiere and interviewed director Don Campbell to provide some exclusive behind the scenes information on this project.

“It would have been very easy to do an infomercial and accomplish the same thing as this show, but if I can do a real show about a real guy who rides around in black leather and motorcycle driving across the country to help relieve people of their IRS burden, I said, ‘Why not? That’s good television,’” Campbell said.

Read more: Jax company spawns reality TV pilot - Jacksonville Business Journal

IRS Hitman Premiere Coverage

 

The Premiere of the IRS Hitman Reality TV Show was a great success, check out the video for a behind the scenes look at the move premiere.

Two New Tax Benefits to Aid Unemployed Workers

As part of the Hiring Incentives to Restore Employment (HIRE) act, there are two new tax benefits available to employers who hire workers that were previously unemployed. It's a small step, but hopefully it will provide a big boost in an economic state where thousands are unemployed.

“These tax breaks offer a much-needed boost to employers willing to expand their payrolls, and businesses and nonprofits should keep these benefits in mind as they plan for the year ahead,” said IRS Commissioner Doug Shulman.

The Benefits: Employers who hire unemployed workers this year (after Feb. 3, 2010 and before Jan. 1, 2011) could qualify for a 6.2-percent payroll tax incentive, in effect exempting them from their share of Social Security taxes on wages paid to these workers after March 18, 2010. Dont't worry, though- this reduced tax withholding will have no effect on the employee’s future Social Security benefits, and employers would still need to withhold the employee’s 6.2-percent share of Social Security taxes, as well as income taxes. The employer and employee’s shares of Medicare taxes would also still apply to these wages.

In addition, for each worker retained for at least a year, businesses may claim an additional general business tax credit, up to $1,000 per worker, when they file their 2011 income tax returns.

Who Qualifies? Businesses, agricultural employers, tax-exempt organizations and public colleges and universities all qualify to claim the payroll tax benefit for eligible newly-hired employees. Household employers cannot claim this new tax benefit.

Employers claim the payroll tax benefit on the federal employment tax return they file, usually quarterly, with the IRS. Eligible employers will be able to claim the new tax incentive on their revised employment tax form for the second quarter of 2010. Revised forms and further details on these two new tax provisions will be posted on IRS.gov during the next few weeks.

IRS Attack- The IRS Notices Are Coming

The Last and the Worst: Most people don’t put the IRS at the top of their priority list and here’s why: If you don’t pay your electric bill, they cut off your power. If you don’t pay your car insurance, they terminate the policy. You could go years without hearing anything from the Federal Government. So why worry right? Wrong! The thing that separates the IRS from every other collection agency in the world is that when they come, they come hard!

Round One! So you haven’t filed in the last few years. You’ve probably gotten a couple of letters from the IRS, asking about your debt. Now you find yourself holding a letter that says Final Notice. While this may not seem important at the time, you’d better pay attention! That’s the IRS’ final warning before the onslaught begins. And trust me; you don’t want to be on the receiving end of an IRS attack. Here’s what they will do.

Levy – This tactic involves the IRS putting a federal lien on your bank account and holding all funds. In short, you’re frozen out of your bank account. And if you have direct deposit, you can kiss your paychecks goodbye. The worst part? Neither you nor your bank has any say in the matter.

Lien – A tax lien can be placed on your credit, meaning you can’t do anything that involves credit payment. This can ruin your credit score for the rest of your life! The IRS can also place liens on your house, making it impossible to sell or renovate. Eventually, these liens turn into seizures, and the IRS sells your property in order to pay off the tax debt.

Wage Garnishment – This is my personal favorite, and probably the most effective. The IRS will contact your employer and start taking a percentage of your check in order to pay off the debt. They can legally take out up to 80%, and a good IRS Hitman will take as much as he can.


Here’s What to Do: File your taxes! Even if you owe money, and you have to file an extension, make sure you file. The IRS can put you in jail if you don’t file, and the penalties are up to $50,000 per year not filed. If you know you’re not going to file on time, file for an extension. Contact with the IRS is extremely important. The IRS is not the collection agency to mess with.

Going at it Alone: An IRS debt can be a terrible situation. As an IRS Hitman, I know how brutal they can be. If you’re in a rough spot, and you’re losing hope, contact a tax professional. They have the knowledge and experience needed to get the IRS off your back.

Step by Step Guide to Buying More Time to Pay Your Tax Debt

Can't Pay? Don't pay! If there is no feasible way to pay your IRS Tax Debt, you can declare Financial Hardship to stop their fierce collections efforts. Although this is usually a temporary reprieve, it is still a valuable tool for taxpayers in desperate situations.

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

• Rent/Mortgage Payments
• Food Expenses
• Utilities
• Gas/Transportation
• Medical Bills/Expenses
• Basic Clothing

Who Qualifies for Currently Not Collectible Status (CNC)?

According to a Report issued by the IRS on January 6, 2009, IRS employees will have greater authority to suspend collection actions in certain hardship cases where taxpayers are unable to pay. This includes:

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

Applying for Currently Not Collectible (CNC) Status

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

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

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

Temporary Reprieve

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

Case Denied
Despite the IRS’s recently claims to ease the burden on the Taxpayer, collection efforts have increased. This means it will be harder to be approved for Currently Not Collectible status unless you display exceptional need. Consider working with a qualified professional to increase your chances of getting your case approved.

IRS Secrets Revealed: Top Three Tax Forms That Save Big Bucks

Knowledge is Power Most people don't have a clue when it comes to IRS rules and regulations. And naturally, few people have knowledge of the countless forms and documents the IRS requires taxpayers to fill out. So get out your pen and take notes, the more you know about the IRS the better.

The Top 3 Forms: These are the top 3 most requested IRS Forms according to the IRS

Form W-9
Form Purpose: Use this to retrieve your Taxpayer Identification Number (ITIN)
How it Saves You $$$: Failure to Furnish your correct ITIN to a requester can result in a $50 penalty. If you provide a false ITIN number with no reasonable basis to back you up, you may receive a whopping $500 penalty! Misuse of ITINs or falsifying information can result in civil and criminal penalties.

Form W-4
Form Purpose: This form lets your employer withhold the correct Federal Income Tax from your pay.
How it Saves You $$$: Be honest with yourself. If your employer doesn't withhold your taxes, will you take the initiative and withhold the taxes from your income? Probably not. And if the IRS doesn't get their cut, you could end up with a massive debt. If you have not filled out a W-4 form yet, let your boss know you need one A.S.A.P!

Form 1040
Form Purpose: Use this form to report your annual income to the IRS, as well as your annual deductions.
How it Saves You $$$: You need Form 1040 to receive your tax returns and itemize deductions. If you do not turn in Form 1040 and/or Form 1040 A annually you will be fined and penalized. Even worse, the IRS will file for you without deductions, credits, or dependents...and at the highest possible tax rate. It's better for you to tell your side of the tax story.

Why it's important: The IRS has to handle thousands of taxpayer's issues annually. The IRS is not designed for “customer service,” they are not going to patiently handle your issue for you. That means it's your responsibility to request information and handle your account. Knowing what forms to request is a huge step in the right direction.

IRS News Reel, What's New in June for the IRS

 Here's a handy news reel giving you the lowdown on the tax news for the month of June.

Small Business Health Care Tax Credit for Small Employers

A new small business tax credit is avaliable, helping business owners provide insurance for their employees. The IRS sent out post cards to those that qualify, but even if you didn't recieve one, you have a chance at this credit.

Qualifications:  

- Providing health care coverage. A qualifying employer must cover at least 50 percent of the cost of health care coverage for some of its workers based on the single rate

- Firm size. A qualifying employer must have less than the equivalent of 25 full-time workers (for example, an employer with fewer than 50 half-time workers may be eligible)

- Average annual wage. A qualifying employer must pay average annual wages below $50,000. 

Both taxable (for profit) and tax-exempt firms qualify.

Watch out for Automatic Revocation for Not Filing annual Return or Notice
The majority of tax-exempt organizations (with the exception of churches) are required to file a yearly return or notice with the IRS. If the organization doesn't file as required for three consecutive years, it can automatically lose its tax-empty status. It might not be fair, but it's the law. Loss of the tax exempt status means the organization loses their status and they will be required to file income tax returns and pay income tax. Contributors to the organization will not be able to deduct their donations. File if you haven't already if you don't want to lose your tax exempt status!

The IRS Hitman Movie Premier Recap & How to Win an iPad!

Our Hollywood style red carpet movie premiere at the 5 Points Theatre in Jacksonville Florida was a resounding success. With the theatre filled to maximum capacity we premiered the first episode of the IRS Hitman reality TV Show the eager attendees. The IRS Hitman was amazing on the big screen. If you missed the first episode, you can still watch it at IRS-Hitman.com or click watch in the navigation above.

How to Win an iPad!

- Subscribe to the “Hit Squad” Facebook page.

- We will post a question on “Hit Squad” Facebook page on Monday, June 7. Answer the question regarding the first episode, by sending a message via Facebook to the The “Hit Squad” Facebook page. You can only answer the question by watching the show on www.IRS-Hitman.com

-On June 11th we will randomly choose the winner from viewers who have answered the question correctly. We will announce the IPAD winner on the “Hit Squad” Facebook page on IRS-Hitman.com!

Good Luck & “Let’s Ride!”

The IRS Hitman IPad Giveaway

To be eligible to win the IPAD do the following:

1. Subscribe to the Hit Squad Facebook page. Very Important.

2. We will post a question on “Hit Squad” Facebook page on Monday, June 7th. Answer the question regarding the first episode, by sending a message to The “Hit Squad” Facebook page. You can only answer the question by watching the show on IRS-Hitman.com

3. On June 11th we will randomly choose the winner from viewers who have answered the question correctly. We will announce the IPAD winner on the “Hit Squad” Facebook page and on IRS-Hitman.com.

Good Luck & “Let’s Ride!”

IRS Hitman Premiere at 5 Points Theatre, June 6, 2010! Let's Ride!

In this bleak economic climate thousands are in debt. Financially speaking, there's only one thing worse than your average debt- and that's a debt owed to the Internal Revenue Service. No one wants to go there; no one has the authority to ruin your life more than the IRS.

The IRS can seize funds straight from your bank account and your paychecks. Nothing is safe when you owe the IRS. I've talked with countless taxpayers over the years, listening to their tax problems intently and helping them along the way. The singular emotion which grips every person that receives a letter or call from the IRS is fear.

This Sunday afternoon, June 6, 2010 at 4:30Pm EST, there is a new hope on the Horizon for those in trouble with the IRS. His name is "The IRS Hitman". If you're in Jacksonville, Florida, come out and see the IRS Hitman Premiere at the 5 Points Theatre.

No cost to attend- The Premiere is Free!

Date: June 6, 2010 (This Sunday!)

Time: 4:30PM

Where: 5 Points Theatre

Address: 1028 Park Street Jacksonville, Florida 32204

If you can't attend, we'll stream the IRS Hitman Premiere live:

Log onto www.IRS-Hitman.com at 4:30 pm Eastern,  as mile one of a million mile adventure begins.   We'll see you there.  "Let's Ride!"

IRS Attack- Steps to Escaping Tax Debt

The Last and the Worst: Most people don’t put the IRS at the top of their priority list and here’s why: If you don’t pay your electric bill, they cut off your power. If you don’t pay your car insurance, they terminate the policy. You could go years without hearing anything from the Federal Government. So why worry right? Wrong! The thing that separates the IRS from every other collection agency in the world is that when they come, they come hard!

Round One! So you haven’t filed in the last few years. You’ve probably gotten a couple of letters from the IRS, asking about your debt. Now you find yourself holding a letter that says Final Notice. While this may not seem important at the time, you’d better pay attention! That’s the IRS’ final warning before the onslaught begins. And trust me; you don’t want to be on the receiving end of an IRS attack. Here’s what they will do.

Levy – This tactic involves the IRS putting a federal lien on your bank account and holding all funds. In short, you’re frozen out of your bank account. And if you have direct deposit, you can kiss your paychecks goodbye. The worst part? Neither you nor your bank has any say in the matter.

Lien – A tax lien can be placed on your credit, meaning you can’t do anything that involves credit payment. This can ruin your credit score for the rest of your life! The IRS can also place liens on your house, making it impossible to sell or renovate. Eventually, these liens turn into seizures, and the IRS sells your property in order to pay off the tax debt.

Wage Garnishment – This is my personal favorite, and probably the most effective. The IRS will contact your employer and start taking a percentage of your check in order to pay off the debt. They can legally take out up to 80%, and a good IRS Hitman will take as much as he can.


Here’s What to Do: File your taxes! Even if you owe money, and you have to file an extension, make sure you file. The IRS can put you in jail if you don’t file, and the penalties are up to $50,000 per year not filed. If you know you’re not going to file on time, file for an extension. Contact with the IRS is extremely important. The IRS is not the collection agency to mess with.

Going at it Alone: An IRS debt can be a terrible situation. As an IRS Hitman, I know how brutal they can be. If you’re in a rough spot, and you’re losing hope, contact a tax professional. They have the knowledge and experience needed to get the IRS off your back.

Man Threatens IRS Office with a "Bomb Bag"

Lawrence Rios was recently charged in Federal Court with threatening an Internal Revenue Service employee in Sane Jose, California by handing her a note that read, "Bomb Bag". Not the brightest crayon in the box, this guy.

According the authorities and court records, Lawrence Rios patted and gestured at his backpack during a visit to the IRS office at 55 South Mark St. in downtown Sane Jose.

IRS employee Dora Acuna who had been helping Rios for about 10 minutes  when he freaked out and passed here his threatening "Bomb Bag" note. Acuna hit a panic alarm and the IRS criminal investigation special agents evacuated the IRS building and detained Rios. No bomb was found.

Lesson Learned: It's a bad idea to threaten the IRS, how did this guy think he was going to get away with it. From terrorist plane attacks to dramatic home bulldozing and now bomb threats, it's clear that IRS sentiment is at an all time low. More reasons I'm glad I switch sides to work with the good guys.

Bankruptcy and IRS Tax Debt

Bankruptcy and IRS Tax Debt Scenario

In my days as a Revenue Officer, I knew someone that had a tax debt of $60,000 before bankruptcy. They tried 6 different bankruptcies in a 10-year period, all in the effort of outlasting the statute on their tax debt. But when all was said and done, the debt was $200,000 and their statute was extended. How could this be?

Quick Facts about Bankruptcy and your IRS Debt

• Filing Bankruptcy will stop the IRS from filing a Tax Lien or using any collection actions against you. You will not receive a notice from the IRS.
  
  
• If a Tax Lien is already in place, there's no getting rid of it until the debt is paid in full.
  
  
• BUT, the penalties and interest are still accruing in the background, making your Tax Debt climb to shocking new heights.
  
  
• Bankruptcy extends the amount of time the IRS has to collect on your debt (Statute of Limitations). For example, if your file a Ch. 13 Bankruptcy, you are extending your IRS Statues by 5 years!
  
  
• After Bankruptcy your IRS tax debt still stands, and it's larger than ever. You may have been paying a "pennies on the dollar" amount for a while, but it's not higher than the IRS interest rate.
  
  

Can Tax Debt be Discharged for Good with Bankruptcy? Sometimes Tax Debt can be discharged through bankruptcy. But three rules have to be met.  

1. The tax year must be at least 3 years old.  

2. You must have personally filed the Tax Return. If the IRS filed a Substitute for Return (SFR), you CANNOT discharge the debt for that tax year.  

3. This last one is killer, it gets most taxpayers. The Tax Return has to be filed AND accessed more than 24 months prior to filing for bankruptcy. This means the tax return was filed and processed and you were billed 24 months prior to the bankruptcy petition date. Basically, you can't file back taxes right before your file for bankruptcy in and effort to cover those tax years.
 
I'm in Bankruptcy now and need to Resolve my Tax Debt, Now what? It's hard to work with the Bankruptcy AND IRS authorities to resolve your Tax Debt. I've seen experienced attorneys jump through flaming hoops to work on negotiations. If you're in Bankruptcy now and need to resolve your Tax Debt, you're going to need professional help!  

What Can I do?
If you pass the tests above, you might qualify for having your tax debt eliminated for good. But most people will not. If you don't want to wake up to a tax debt nightmare months or years down the line, face your debt and find a solution that doesn't involve bankruptcy.