IRS Hitman

Meet Catherine: The IRS Hitman Team Helps a Former Roni Deutch Client

noreply@blogger.com (The IRS Hitman) — Tue, 07 Feb 2012 16:28:00 +0000

Unfortunately, many IRS Hitman clients are hurt by other companies before they come to us. We try to spread awareness of shady tax resolution companies like Roni Deutch, before it is too late. Catherine's tax problems became remarkably worse after working with Roni Deutch. We were able to help her, and Roni Deutch is no longer in business. However, Deutch's brother has started a tax resolution company called The Juceam Group. As always, thoroughly research a company before you sign on with them.

More Phishing Scams this Tax Season

noreply@blogger.com (The IRS Hitman) — Mon, 06 Feb 2012 16:46:00 +0000

2011 was a record year for identity theft during the tax season. It looks like 2012 is looking to break that record. I cannot stress enough how important it is to be extremely cautious about who you talk to regarding anything tax related. I have already written a blog on what to do about the most common phishing schemes. Here’s some information to keep you safe.

H&R Emerald Pre-paid Card Holders

If you have an H&R Block Emerald Pre-paid Card, you may be particularly targeted by identity thieves. You may start receiving text messages claiming to be H&R Block. Whatever you do, do not respond to these text messages. No matter how urgent the text makes it sound, H&R Block is stating that you should not call the numbers in the texts or reply at all. I would go ahead and caution that you never heed any “urgent” text messages you get from anyone. Call numbers you already know to trust. As always, report anything phishy (pun completely intended) to phishing@irs.gov.

Intuit Tax ID Scam

Be very wary of emails claiming to be from Intuit and especially the email address security@intuit.com. The header may be something along the lines of “Urgent update of tax information is requested” or give you a deadline to respond. Even frequent Forbes contributor, Kelly Phillips (@TaxGirl on Twitter) has been getting these. She states that these emails are looking for you tax identification number. This is what you should do regarding these:

Do not reply. This is pretty obvious, but people still do it.
Do not click on any links. They lead to viruses created to steal your identity.
Forward the email to spoof@intuit.com to verify it’s really them.
Delete the email from your inbox.
If it does turn out to be a phishing scam, email the info to phishing@irs.gov.

As always, remember, the IRS will not be contacting you by phone or email. They definitely won’t be contacting you by text. If you get anything suspicious contact the IRS. Either email phishing@irs.gov or call the Treasury Inspector General for Tax Administration at (800) 366-4484.

Swiss Bank Wegelin Falls to the Tax Man

noreply@blogger.com (The IRS Hitman) — Fri, 03 Feb 2012 15:32:00 +0000

Remember my blog on the IRS winning the case against GE for its abusive tax shelter practices? Well, it seems the quest to take down foreign banks that help provide abusive tax shelters for tax evaders continues. For the first time, US authorities have indicted an overseas bank for helping Americans dodge the tax man. The bank in question is the 271-year-old Wegelin; a private Swiss bank that recently sold all of its non-US businesses. I guess the Feds were just waiting for the right moment to swoop in.

Several names have been named in helping wealthy tax evaders hide more than $1 billion in assets from the IRS. These guys were finding ways to shuffle funds around that I thought only the writers for “Ocean’s Eleven” could dream up. For instance, one banker brought $16K in an envelope to a meeting. Others renamed accounts and created non-existent foundations.

Yet again, I’m telling you. You CAN’T cheat the IRS. They will find you. If financial masterminds half way across the world can’t do it, you can’t do it. Be honest with the IRS and hire a tax debt professional, if you are in a bind. Don’t wind up behind bars.

Call 888-391-2037 or fill out the submission form to get a free consultation on what would work best for your tax problem.

Meet Lorenzo: Another Satisfied IRS Hitman Client

noreply@blogger.com (The IRS Hitman) — Tue, 31 Jan 2012 19:20:00 +0000

No matter how much you owe the IRS, it's a big deal. It doesn't matter how much you owe or what the IRS is doing. If you need defense against the IRS, you need the best. Don't give up if one attorney tells you its hopeless. You just haven't found the right help yet. The IRS Hitman Team understands that. Listen to Lorenzo's tale about how he found help at last from people who truly cared about getting him real IRS tax relief...the IRS Hitman Team.

IRS Wins Case Against GE for Abusive Tax Shelter

noreply@blogger.com (The IRS Hitman) — Fri, 27 Jan 2012 17:38:00 +0000

You cannot cheat the IRS! I've said it before and I'll keep on saying it. It may seem like you have really pulled the wool over their eyes when you try stuff like using an abusive tax shelter. But, the IRS will eventually figure it out. And, when they do…they'll be mad.

So, what is an abusive tax shelter? It's when you invest money some place in an effort to reduce income tax, and serves no other economic purpose. Donating large amounts of money to an established charity is serving an economic purpose; therefore you can deduct the amount of income you sent to them from your taxes. Hiding a noteworthy sum of income in a foreign account so that you don't have to pay taxes on it...is using an abusive tax shelter. See the difference?

General Electric, one of the biggest American companies in our nation's history, is just now learning that lesson. Their Castle Harbour unit has been claiming to be partners with two foreign banks, but was using an abusive tax shelter in reality. From 1993 to 1998 alone, they sent more than $300 million of income their way. This greatly lowered the amount of taxes GE paid. In fact, in 2010 a $3 billion tax credit ensured the company got a refund.

But, the good times are over. Once the IRS figured out that the company was operating a long-running, complicated abusive tax shelter scam, they went after GE hard. They took them to court over and over again, until they were able to stick a guilty sentence on the company.

If you think the IRS won't come after you for using an abusive tax shelter, you couldn't be more wrong. They will hound you until you have no defense left. Then, you'll have a much higher tax debt than if you had just paid your taxes to begin with. On top of all that, the IRS will expect for you to pay their legal fees. Take it from me, the IRS Hitman, send honest tax returns to the IRS. If you can't pay the bill, there are better alternatives. Call 888-391-2037 or fill out the submission form to get a free consultation on what would work best for your tax problem.

Finding IRS Relief: Consumer Tax Reports

noreply@blogger.com (The IRS Hitman) — Fri, 20 Jan 2012 16:59:00 +0000

Finding the right tax resolution company for your IRS problems can be difficult. There are so many companies that make so many promises. No one has the time to interview and thoroughly investigate all of these places. So, who do you know you can trust?

Fortunately, a site called ConsumerTaxReports.org has done the work for you. So far, fifty companies have been reviewed. Every company is laid out according to its rank on the site on a table that lists all of the following information:

Consumer Tax Reports score (up to 100) and rating (A+ through F).
Cost: Average fee, flat fee vs retainer, flexibility, and payment options.
Type and number of professionals on staff, and years of experience.
Number of cases closed satisfactorily and date of incorporation.
Reputation with the BBB, Attorney General, and the internet.
Whether the company has a grasp of tax problems and solutions.
Hours of operation, client care hotlines, and quality assurance department.
Client experience and commitments to charities.
Technical, email, and phone support provided by the company.

If you see a company that you like, all you have to do is click on the “Get Help Now” button or call the number provided to contact the company. If you want to learn more about the company, you click on the “Read Review” button.

The review goes over the information provided on the table in more detail. It also details the experience a secret shopper had when interacting with this company. The review explains why the company was given the score, rating, and rank that you saw on the table. If you do not see a company that you are interested, you can request that Consumer Tax Reports have a secret shopper investigate it for you. Honestly, I’ve never seen a review site that has used as much thought as ConsumerTaxReports.org.

These are the top five companies on the site and how they ranked up:

Tax Defense Network has an A+ rating and a 98 score.
Tax Resolution Institute has an A rating and a 95 score.
Alvin Brown and Associates has an A rating and a 94 score.
Segal, Cohen and Landis has an A rating and a 92 score.
Freedom Tax Relief has an A- rating and a 91 score.

Take a look at the site and compare the companies you see. This is a much more reliable method for finding tax relief, than believing what you hear on commercials. Be smart. Take a look at ConsumerTaxReports.org.

IRS Hitman Team Spotlight: Laura Kennington

noreply@blogger.com (The IRS Hitman) — Thu, 19 Jan 2012 17:07:00 +0000

People seem to only think of tax attorneys, when they are looking for IRS relief. Very few taxpayers know what an enrolled agent does and how they can help. Personally, I believe enrolled agents are just as helpful as tax attorneys for most tax problems.

The National Association of Enrolled Agents gives this description:
An Enrolled Agent (EA) is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals.

Let me introduce you to Laura Kennington. She is an enrolled agent that helps hundreds of clients find a successful resolution every month. If you have a tax question, Laura has the answer. She answered a few questions about enrolled agents and her professional history. I think you’ll see why I’m glad to have her on the IRS Hitman Team at Tax Defense Network.

What does an enrolled agent have to do to keep their status with the IRS?

The IRS requires enrolled agents to take a minimum of 24 hours of continuing education every year including ethics and tax update. Since the tax laws can be complicated and challenging I exceed the minimum with an average of 50 hours a year.

How long have you been working in the tax field?

As an enrolled agent? I have been an enrolled agent for 2 years and worked in the tax field professionally for the past 7 years as a tax preparer and master tax advisor.

What are some accomplishments or cases that you are particularly proud of?

My client received notice from the IRS that he owed $97,000 in taxes on money he inherited. He used the inheritance to purchase a home for his family and pay for his daughter’s college. With no money left to pay the tax he thought the seizure of his home was certain. After reviewing his tax return and amending an error he received $107 refund.

What does your status as an enrolled agent allow you to do for our clients?

As an enrolled I represent my clients before the IRS to negotiate an affordable resolution for their tax matters and protect them against collections.

What’s the best advice you would give to taxpayers?

Don't tackle the IRS alone when you can have a team of tax professionals to protect your rights, saving you time, money and a tremendous amount of stress.

Take Laura’s advice! Don’t take on the IRS alone. Get help from the best. Call 888-391-2037 or fill out the submission form for a free consultation!

Meet Eileen: A Real Tax Resolution Story

noreply@blogger.com (The IRS Hitman) — Tue, 17 Jan 2012 19:54:00 +0000

My father was a big shot in the IRS. I was an IRS Hitman for nearly a decade. I have been helping Tax Defense Network help tax problems for a long time now too. What I'm trying to say here is, I have heard a lot of stories. Unfortunately, most of them have been tragedies. But, now that I help taxpayers, I get to give those stories happy endings. I have heard so many glowing testimonials from our clients. However, some of our cases stand out more than others. Eileen's case is a shining example of why you should reach out for help, if you have too much IRS tax debt to handle. I've put it into a two minute video to share with you!

If you owe more than $10,000 and need help, give me a call at 888-391-2037 or fill out the quick submission form. A member from my IRS Hitman team at Tax Defense Network will call you as soon as possible to help you find your happy ending!

Phishing Season

noreply@blogger.com (The IRS Hitman) — Mon, 16 Jan 2012 20:35:00 +0000

According to Nancy Olson from the Taxpayer Advocate service, 2010 was a record year for identity theft and fraudulent electronically filed tax returns. DON’T become just another victim of phishing! Follow this advice and keep safe.

Phishing Emails

You simply will not receive any emails from the IRS. The IRS does not communicate like that. If you receive any phishing emails claiming to be from the IRS, follow these directions.

Don't reply.
Don't open attachments.
Don't click on links.
Forward the email without any changes to phishing@irs.gov.
After the email is forwarded, delete the original message received.

Phishing Websites

There are some phishing websites that claim to be the IRS, so that they can get your personal information. The only officially IRS website is irs.gov. If it doesn’t say that within the URL, you definitely shouldn’t be handing out your Social Security Number or banking information.

Do not provide any personal information.
Send the URL to phishing@irs.gov.

Phishing Phone Calls

It is rare when the IRS calls a taxpayer. In fact, the only time you should be receiving phone calls is when you already have spoken with a revenue officer or agent, and are working on a tax issue with him or her. If you ever receive a possible phishing phone call from someone claiming to be from the IRS, please follow the directions below.

Ask for a call back number and employee badge number.
Call IRS to determine it was a legitimate IRS employee.
Do not give any info over the phone until you are sure it is an IRS employee.
If he or she is a fraud, contact the Treasury Inspector General for Tax Administration at (800) 366-4484.

Phishing Paper Letters

Whenever you get a letter from the IRS, the first thing you should do is look it up on the IRS website. If it doesn’t look like anything on there, you could be looking at phishing bait. Sometimes, a letter just won’t feel right either. Any time you receive what looks like an IRS letter asking for personal information, follow the instructions before doing anything else.

Call IRS to determine if it is a legitimate IRS letter.
If it is not legitimate, contact the Treasury Inspector General for Tax Administration at (800) 366-4484.

If your situation doesn't fit any of these, email phishing@irs.gov to find the answer to your phishing questions.

The IRS Doesn't Have Enough Money

noreply@blogger.com (The IRS Hitman) — Thu, 12 Jan 2012 22:10:00 +0000

According to Nina Olson, with the National Taxpayer Advocate service, the IRS is BROKE. What does this mean? It means more work is getting done by computers and less is getting done by actual employees. In fact, good luck getting ahold of anyone helpful at the IRS now. It seems that the IRS budget cuts will mean longer hold times than ever this tax season. IRS employees are overworked, underpaid, and grouchy about it already. Imagine how much worse it can get!

Even the IRS seems concerned with the lack of taxpayer protection these IRS budget cuts have caused. It seems that identity theft sky-rocketed with the 2011 electronically filed returns, and there isn't much they can do about it with so little money. Their concern may have more to do with what a 72% increase in returns marked as fraudulent by their computers will do to their over-taxed (pun mostly intended) employees.

Sometimes, people ask me why they shouldn't just handle their tax problems on their own. Well, there is the good possibility that you do not have the required tax knowledge to put yourself in the best situation. Another big reason is this, it takes a GREAT deal of time to do all of this accurately yourself. Just finding out what your current IRS status is could take you hours. Do you really have the time and resources to tackle your tax problems and get the tax relief you deserve?

My team at Tax Defense Network spends countless hours diligently dealing with the good, the bad, and the ugly that comes with the IRS tax resolution process. They can spend 10-12 hours a day dealing with these hassles, because it is their job. They also do it, because they care.

If you need help, call 888-391-2037 or fill out the form for a free consultation. You will get help from someone who genuinely wants to help, as opposed to waiting hours for someone who is paid to get as much money as they can from you.

IRS Hitman Team Spotlight: Ronnie Hicks

noreply@blogger.com (The IRS Hitman) — Wed, 11 Jan 2012 20:10:00 +0000

Most of this blog and my site focus on me being some kind of tax hero. But, I have to be honest.I have the best team anyone could hope for at Tax Defense Network and they are hugely instrumental in helping me successfully close more than 400 IRS cases a month. Helping me in the lead is my senior tax attorney and enrolled agent, Ronnie Hicks. He has a Masters in Taxation and Juris Doctorate. He is a member of both the South Carolina and Florida Bars. He also has been spotlighted as the hardest working tax attorney in the pro bono division for low-income taxpayers with Three Rivers Legal services. I can rely on him to personally handle our largest cases and help me supervise the other tax debt professionals on my team. In addition to all of this he teaches enrolled agent classes, which gives my team the edge over most attorneys out there.

A lot of our competitors are lucky if they have anyone with real tax knowledge on their team. I have a power-house of tax knowledge helping my team of tax debt professionals at Tax Defense Network! This is why we have an A rating with the Better Business Bureau! This is why we're in the best in the business!

Check out Ronnie Hicks in these local news interviews helping taxpayers during crunch time!

If you need help from the VERY best in the tax resolution industry, contact the IRS Hitman Team at Tax Defense Network. Call 888-391-2037 now or fill out the form for a free consultation on the best solution for your tax problems!

Tax Defense Network Offers Help to Truckers

noreply@blogger.com (The IRS Hitman) — Tue, 10 Jan 2012 17:10:00 +0000

We recognized a growing problem... My team at Tax Defense Network has noticed over the years that owner-operators are often stuck with huge tax problems due to not having the time every year to personally make sure that their tax returns are as accurate as possible. Because of the incredible fuel costs and other expenses that these people face, not recording all of their deductions can cause the IRS to believe that they are making several times more than their actual take-home income. When the IRS files for an owner-operator, they do it in the following fashion:

-No deductions are used. That means no fuel, food, repair, or lodging expenses.
-No credits are used, even if you qualify for tax cuts like the Earned Income Credit.
-No dependents are documented. 12 hungry mouths to feed at home won't matter.
-You will be taxed at the highest possible tax rate.

This means that you will be taxed as if you were Bill Gates. The IRS will expect 35% of what you made before it was all spent on keeping your truck on the road. That’s more than double what the average taxpayer is required to pay.

So we came up with a plan...We realized that we needed to seriously focus on the problems that owner-operators are facing. So, we have created an in-house department intended solely to prepare and file overdue tax returns as well replace incorrectly filed returns. We have even employed tax consultants with CDL training. In addition to this, we have partnered with the Owner-Operator Independent Drivers Assocation (OOIDA) to offer truck drivers a $500 discount on legal services they may require. You can read more about this discount on the Tax Defense Network site. Tax Defense Network has published a press release explaining the details of what the new department has to offer owner-operators in need.

I have to say, it feels great knowing that owner-operators will getting my team’s specialized help. These people have a lonely and exhausting job that they get very little recognition for. They are basically running a business completely by themselves with little to no help managing their finances. If you are an owner-operator looking for tax help, I would definitely look into this. You could save yourself a great deal of money in legal fees, as well as get help from specialists in your area of tax problems. I don’t think it can get any better than that. Here’s hoping that this partnership brings about a stress-free 2012 for those traveling the roads to provide for the rest of us!

JK Harris Bankruptcy: A Giant Tumbles

noreply@blogger.com (The IRS Hitman) — Thu, 05 Jan 2012 16:16:00 +0000

You know that saying “The bigger they are, the harder they fall.” This especially holds true for giant corporations that make their money by deceiving those with a tax debt. Just look at American Tax Relief and Ronnie Deutch. They went down in flames. Fast in their tracks are two even bigger tax resolution giants. TaxMasters and JK Harris have been hunted down by attorney general lawsuits and other claimants for years due to their deceptive and unfair trade practices.

JK Harris has especially been hounded by law suits for its consumer fraud and illegal business practices. It also owes a lot of money to a lot of people, including many employees it has not been able to pay for quite some time. Last week, JK Harris had to suspend all operations. Every employee at its Goose Creek, SC headquarters is jobless. Thousands of taxpayers are now left completely defenseless. While JK Harris is not officially closed, they are pursuing Chapter 7 which would liquidate all of its assets.

What led to JK Harris’ downfall? I would look to its Better Business Bureau review. It is not accredited, but it still has an F rating. I guess 676 complaints it has accumulated in 3 years involving its advertising, billing and collection methods, delivery issues, guarantee issues, and services will do that. The BBB actually extensively explained just what a horrible mess that company has been. It gives the long laundry list of attorneys general (it looks to be about 18) determined to protect taxpayers from JK Harris’ trickery. It discusses the claims JK Harris has made that it has a high success rate of negotiating a debt for pennies on the dollar, which is totally untrue.

If that sounds bad, listen to what the BBB has to say about another company not accredited with it. TaxMasters also has an F rating due to the 1,032 complaints it has accumulated over the last three years. The biggest issue the BBB has with TaxMasters is that it claims that they will not charge a fee if it fails to negotiate a settlement for you, but in reality provides no refund for failing to provide any kind of tax relief. Take my word, once JK Harris closes, TaxMasters will be breathing its final death rattle as well.

This is why I’m so glad that I chose Tax Defense Network to team with, when I decided to help taxpayers instead of target them as an IRS Hitman. They have been helping taxpayers since 1997 and have an A rating. They are truly honest about what can be done for a client. They never pursue a resolution that will put someone in a bad situation. They also provide refunds.

If you need tax relief, DON’T go with a falling giant. That’s how you get trampled. Go with a company that is more concerned with helping taxpayers than rapid growth through deceptive practices. Call 1-888-415-1337 now or fill out the form for REAL tax relief today!

The Newt Gingrich Tax Plan

noreply@blogger.com (The IRS Hitman) — Fri, 16 Dec 2011 14:54:00 +0000

Newt Gingrich, like Rick Perry, believes in an optional flat tax plan. However, Gingrich wants to make the corporate tax only 12.5%, compared to Perry’s 20%. Currently, the corporate tax is 35%. Gingrich would like a 15% flat tax on individual taxpayers, as opposed to Perry’s 20%. 15% is the average tax rate for individual taxpayers already. The wealthiest citizens are paying 35%. It is almost as if Rick Perry and Newt Gingrich are contestants on “The Price is Right,” and Gingrich is trying to outbid Perry.

As I discussed in my blog on Rick Perry’s tax plan, huge tax cuts like this will result in adding trillions to the deficit. America’s current deficit is intimidating enough. I could go over the arguments that supporters are probably making that this will create jobs. However, I have a feeling that all of these tax plans are making that very point. Right now, our government is fighting over whether the currently lowered payroll tax cuts should be extended. Those advocating all these tax plans that dramatically lower taxes for the wealthy and businesses are also contending that payroll tax cuts are not creating jobs. They are the exact people that are concerned that cutting payroll taxes hurts Social Security benefits. So, how exactly will this country afford to pay for the dramatic tax cuts that Gingrich wants?

How about this, Congress? Instead of trying to distract us with risky tax cut proposals, you work with taxpayers! Treat them like citizens instead of criminals. Help them file their taxes correctly. Make it easier to get into tax resolutions, and scale back the aggressive collection actions.

Furthermore, I’m not sure I would take any tax plan seriously from a man who has his own shady history with tax fraud. Gingrich has a way of making big promises, and then running off when things get tough. Just ask his last wife.

Christie Brinkley's $531,000 Tax Lien

noreply@blogger.com (The IRS Hitman) — Thu, 08 Dec 2011 17:45:00 +0000

I was going to write about Newt Gingrich’s tax plan, but I think we can all agree that Christie Brinkley’s face is one anyone would rather look at. Also, I really don’t think Newt is going anywhere any time soon. Brinkley’s tax lien should be disappearing quite soon, however.

The 57-year-old supermodel and star of Broadway’s “Chicago” recently discovered that she had a $531,000 tax lien placed on her Long Island mansion. Apparently, the tax lien was the result of an error. That’s right folks! Sometimes, the IRS places a lien accidentally. Thankfully, she looked into it and, as of yesterday, she paid the full amount of the tax liability. Since she handled it the correct way, the tax lien should be released soon.

However, her story should make it quite clear that you really can have a whopping tax debt and not know about it. Christie Brinkley stated that she wished she had paid more attention to her accounting matters before, but she has been dealing with the serious health issues her parents are facing. Life can be distracting, but it is a good idea to check up on your situation with the IRS occasionally. Don’t let a tax lien surprise you! Brinkley was lucky in that the tax lien was placed on her in error and she had the money to pay it in full. Not many people have that going for them. Once a tax lien is in place, it is nearly impossible to get rid of it. Prevention is key!

Don't Surrender to a Bank Levy!

noreply@blogger.com (The IRS Hitman) — Thu, 01 Dec 2011 19:25:00 +0000

I discussed wage garnishments last week. This week I'll discuss another IRS tactics, the bank levy. I can never decide which is worse between the two. A wage garnishment bleeds you dry every paycheck. But, a bank levy can leave you suddenly penniless.

What should you expect from a bank levy?
When a bank levy takes everything out of your account, there is very little you can do to get any of that money back again. Because of this, people often throw up their hands and submit to their dismal fate. I said it last week and I’ll say it again. Do not give up! Get the facts and work toward a resolution, because giving up only makes things worse.

Once the IRS has cleared out your checking account, you may be asking “What else can they do to me?” Well, they can continue to levy you. They can come back to that account after the 21 day freeze is over and take more money. A bank levy can also come after a number of accounts that have your name attached to it. This includes, but isn’t limited to:

- Joint Bank Accounts
- Credit Union Accounts
- Certificate of Deposits
- Savings and Loans
- Retirement Accounts

It's up to you...
Unless you are willing to completely jeopardize your financial future or possibly a joint account holder’s funds, a bank levy should prompt you to take immediate action! As I mentioned last week, there are temporary solutions to IRS collection activities. Proving hardship or appealing may even get you some of the money that has been frozen by a bank levy. However, the only way to prevent the IRS from coming after every account it can find is to get into the best tax resolution for your situation.

To stop a bank levy and make sure you get the greatest results possible, hire a tax debt professional with years of experience solving problems just like yours. My Hit Squad Team has dealt with thousands of different circumstances. Don’t give up! Don’t let the IRS win! Get armed with the best tax defense out there!

Don’t Let a Wage Garnishment Control Your Life!

noreply@blogger.com (The IRS Hitman) — Tue, 22 Nov 2011 19:40:00 +0000

I have decided to take a break the next two weeks from the tax plan blogs, because of an email I recently received. Unfortunately, I get many emails similar to this. In the email, the fellow stated that he felt all hope was lost. His tax professional had told him there was nothing that could be done about his situation. He felt that the only option left open to him was to take his own life. The IRS really can ruin your life, but only if you let it! Do not give up! Do not let the IRS win!

If you owe more than $10,000 to the IRS and you haven’t made an agreement with them to pay it off, you are vulnerable to a wage garnishment. If you have been fortunate enough to avoid it so far, take heed now before it’s too late! The most efficient collection method and pressure tactic the IRS pulls out of its bag of tricks is the wage garnishment. It is incredibly easy for them to figure out where a taxpayer works, since your employer is reporting money paid to you on a quarterly basis. It's not as easy for the IRS to levy contractors, but a 1099 wage garnishment is much harsher.

Here is what you can expect if a wage garnishment hits you!
• Your employer or the people you contract for will be notified before you.
• What you are left with is based on an IRS table of what you will need for basic survival.
• You could be left with as little as $791 a month.
• If you work on a 1099 basis, your entire check will be taken.
• If you have more than one job, all of your jobs can be levied simultaneously.
• Working overtime will give you absolutely no extra income.
• Many employers choose to fire an employee with a wage garnishment.
• Your spouse may go through a wage garnishment at the same time.

There are many ways to temporarily end a wage garnishment. You can prove extreme hardship and have it lowered. You can file for an Offer in Compromise or appeal your tax debt. However, these are temporary solutions at best. At worst, they could potentially cause even more tax problems.
Your best bet to stop a wage garnishment is to enter into an Installment Agreement. This will show the IRS that you are willing to work with them to pay your tax debt, and will fully protect you from aggressive action as long as you abide by the terms of your Installment Agreement.

Not all Installment Agreements are created equal.
There are different kinds of Installment Agreements for different situations. You need to make sure that you are in the one that benefits you the most! If you cannot pay the amount you agreed to in full and on time every month, you could be looking at another wage garnishment. It is really best for anyone who owes more than $10,000 to talk to a tax debt professional before agreeing to anything with the IRS.

The holiday season is beginning. Will you have the money for a turkey dinner and holiday presents? My team is here to make sure that you can live a happy life, free from the worries of a possible wage garnishment or bank levy. Don’t give up! Don’t let the IRS win! Let us help you!

The Rick Perry Tax Plan

noreply@blogger.com (The IRS Hitman) — Tue, 15 Nov 2011 20:32:00 +0000

Rick Perry has been viewed by many Republicans as the best candidate for the job as president. In fact, he was once the front runner in the Republican primaries. As each debate passes, he falls farther behind in the polls. However, the Republican primaries are far from over, and it is never too late for things to turn around for this candidate. So, it is important to take a look at what his ideal tax plan would be for America.

What does Rick Perry want?

Perry wants to create a hybrid of a flat tax plan and our current tax structure. In his tax plan, taxpayers would make a choice between using one or the other. He wants to completely eliminate taxes on investment income. He would also allow deductions for mortgage interest, charitable contributions, and state and local taxes on the flat tax plan.

The flat tax plan would tax all who selected it 20% of their personal and corporate taxes. For those who make over $1 million annually, this would be a tremendous $510,000 tax break. For those who make between $40-50 thousand annually this flat tax plan would slightly raise taxes. Those making less would definitely expect a dramatic increase in taxes.

Experts believe that any wealthy citizen in his right mind would choose the flat tax plan over what our current system is taxing them. For the rest of America, there would be no benefit at all to the tax plan. Tax season would simply be business as usual for them.

Will Perry’s tax plan hold up?

Perry’s tax plan would bring a revenue shortfall in 2015 of nearly $1 trillion. The current Bush-era tax breaks would only cost America $570 billion. So, America’s deficit could potentially double, unless the government dramatically cut back on Federal programs. This is why Perry wants to cut Federal spending to 18% of GDP, which is $15 trillion. This would drop spending from $3.6 trillion to $2.7 trillion a year.

Just what does Rick Perry want to cut in his tax plan? Well, he’s become rather infamous for not being able to remember three item list of major Federal agencies (the last one he actually wanted to cut was the Department of Energy, not the EPA). So, at best, Perry’s tax plan seems like an enthusiastic yet poorly thought out project. It relies on the fickle and unproven Trickle Down Theory to create jobs and economic growth, while doubling the rate America’s debt grows.

The Mitt Romney Tax Plan

noreply@blogger.com (The IRS Hitman) — Tue, 08 Nov 2011 21:41:00 +0000

Mitt Romney has been maintaining a steady second place in the Republican Primaries, despite his vacillating stance on most issues. His tax plan is very much an example of this flip-flopping. Being a Republican, he is very much for bigger tax cuts and lower deficits. Yet, he can’t seem to make a firm stance on what it would take to make these competing objectives work together.

What tax cuts does Mitt Romney want?
Every Republican candidate has a laundry list of what taxes they would like to cut, if they were given the power. While Mitt Romney seems content with simply extending Bush Era tax cuts and maintaining marginal rates at current levels, he does have his own catalog of tax cuts as well. His tax plan would:

- Eliminate capital gains tax and estate tax.

- Further reduce taxes on savings and investment.

- Eliminate the death tax (estate tax).

- Lower the corporate income tax rate to 25% (currently 35%).

- Eliminate capital gains tax for those who earn less than $200,000 a year.

His tax plan also includes a “territorial” tax system. This means that any money you make from outside of the United States would not be taxed. Corporations that do a lot of business in other countries wouldn’t have to pay a penny of taxes on what they earned with this tax plan.

While he no longer opposes the idea of a flat tax, he still hasn’t met a flat tax plan that he feels would actually work. His current wish-washy position on this is that he just wants a tax plan that wouldn’t raise taxes on the middle class. If he ever finds a flat tax plan that would be middle class friendly, he would probably support it.

Would Mitt Romney lower the deficit?
In short, Mitt Romney wants to cut Federal programs and 10% of the government’s payroll. He feels that government employees are overpaid in comparison with the rest of the country. He also feels that Federal spending should be cut from programs like Amtrak and the National Endowment for the Arts. His tax plan calls for a $500 billion cut to federal programs. He contends that he likes these programs, but feels they are unessential. And, in his words he doesn’t want to “borrow $1 billion from China to pay for them.”

But, will these cuts in spending be enough to lower our deficit with all of the tax cuts that Romney would push for? Maybe not, but so far he seems to be the only Republican candidate truly concerned about not making our deficit worse.

The Herman Cain Tax Plan

noreply@blogger.com (The IRS Hitman) — Mon, 31 Oct 2011 22:28:00 +0000

The Republican Primaries are in full swing and, no big surprise here, the state of the economy is the focus of their campaigning. So, just what do these candidates think we should do about the state of our tax system? Every week, I will cover a candidate’s tax plan. This week, I will discuss the Republican frontrunner, Herman Cain.

Just What Is 9-9-9?
Herman Cain definitely has the most straight forward tax plan out of all the candidates. A small paragraph can completely sum up the 9-9-9 tax plan. It’s a 9% business flat tax, 9% personal flat tax, and 9% national sales tax. Most people hear that single digit percentage and think it will save them a great deal of money and complications. Unfortunately, that’s not true.

Currently, the corporate tax rate is close to 40%, and Cain intends to drop it down to 9%. He also will completely eliminate employee payroll taxes with this tax plan. So, just how will he make up for this huge drop? With your personal taxes and a new national sales tax!

Every single American will be expected to pay 9%. Currently, the rather small percent of our country considered the wealthiest citizens are paying somewhere around 35% of their income in taxes. So, this would be a greatly appreciated tax cut for them.

However, 49.5% of our country pays absolutely no taxes at all. Also, 84% of taxpayers pay less in personal taxes than they would with this plan. And, the only two deductions that would be allowable would be charitable donations and living in the inner city (what he refers to as the “empowerment zone”). You can see how suddenly getting 9% of the income that half the country wasn’t giving before would make up for the dramatic business tax cut.

The brand spanking new 9% national sales tax may not sound that bad. However, take into account that this does not wipe out your local and state sales taxes. That’s right! That’s an extra 9% added onto everything else. On top of that, experts say that this will actually hit the lower and middle classes hardest. Not all that surprisingly, the wealthy spend a much smaller percentage of their money than those with a smaller income.

Will It Work?
If the 9-9-9 tax plan works, it should actually generate $2.16 trillion. On paper it looks like it could greatly lower the national debt. However, it has not been taken seriously at all by most tax experts. Many of them refer to it as a pizza special, referring to Cain’s background as a pizza chain businessman. Others have pointed out that the 9-9-9 tax plan is remarkably similar to the video game Sim City 4 Default Tax Plan.

Also, there is the fact that Herman Cain was hit with a tax lien himself in 2008 for a two year old Georgia state tax debt. Even if he had a valid excuse for not paying that year (he was treating stage 4 cancer), it does seem unlikely that he is a tax expert. He does have consultants, but his chief financial advisor is an investment banker with a Bachelor’s in accountancy. There is a big difference between that and an economist. There is an even bigger difference between that and a nationally acknowledged economist. And, the leading economic experts all seem to agree that Cain’s plan simply won’t work.

Cain doesn’t even see his 9-9-9 tax plan as a permanent solution either. He only plans on using it for a year or two. After that, he feels that the country should revert to the FairTax plan proposed by Leo Linbeck Jr. in 1996. The FairTax plan has been renamed by many as the Flat Tax plan, because many economists also believe that this plan will hit the poor and middle class the hardest.

As you can see, Cain’s 9-9-9 tax plan does have its benefits. However, it seems that it would hurt more taxpayers than those it helped. However, it is pretty rare that a candidate actually employs the tax plans he touts after he has become president.

News About Your Tax Deductions!

noreply@blogger.com (The IRS Hitman) — Thu, 27 Oct 2011 13:18:00 +0000

If you are even thinking about tax deductions right now, it’s because you are late filing your 2010 tax return. Maybe you are the plan-ahead type and are considering what tax deductions you may use on your 2011 tax return. But, I think it is safe to say that no taxpayer is thinking about tax deductions for 2012. As usual, the IRS is two steps ahead of us. They are already working on 2012 tax deductions. While this seems very far into the future, this is actually right about where the IRS should be in its planning stages.

I tend to post some pretty scary stuff here, but it looks like I have some good news this time. When you file your 2012 tax returns, you can look forward to using increased standard tax deductions! And, your personal and dependent exemptions will be raised to $3,800. On top of all of that, the income threshold to enter into a higher tax bracket has been raised.

If you’re wondering if these new standards will save you from a hefty 2012 tax debt, don’t get your hopes up. At most, the tax deductions have been raised a few hundred dollars. And, you only have another $1,700 of income before you enter a higher tax bracket. These changes will mostly affect people who will owe little in tax debt or be owed a refund for 2012.

Honestly, if you think that tax deductions play a huge part in preventing tax debt, you are headed in the wrong direction. Unless you are forking over a tremendous amount of your income to charities, tax deductions can only save you a small amount on your taxes. If you owe more than $10,000, it has more to do with your income and how much tax was withheld.

The smartest taxpayers make sure that tax season isn’t the only time they are sending what is required to the IRS. If you are a regular employee, you need to make sure that your employer is taking out the correct amount of taxes. If you are self-employed, you should be sending estimated payments every quarter. If you withdraw from a 401K or IRA, you need to talk to a tax professional and pay the correct amount of taxes on that. Those tips combined with the right use of tax deductions may prevent you from owing at all. You may even get a refund!

If you already have a pretty high tax debt, tax deductions won’t cut it down. You need help from a tax debt professional. There are plenty of tax programs out there that keep the IRS out of your finances, assets, and life! My Hit Squad Team is here to help you figure out which ones will really work for you!

In Case You Missed Your IRS Extension Deadline

noreply@blogger.com (The IRS Hitman) — Thu, 20 Oct 2011 22:34:00 +0000

For most taxpayers who filed for an IRS extension, the deadline came and went this week. If you didn’t file your tax return in time, you may be feeling scared right now. Don’t get scared. Take action! It is never a good idea to simply bury your head in the sand, if your tax issues get more difficult. You need to really examine why you are in the situation you are in and then you can make an action plan. I’ll help you out by asking you two questions:

Why did you file for an IRS extension?
If you filed the IRS extension simply because you knew you didn’t have time to do it correctly, then you filed for the right reason. If you filed an IRS extension because you knew you were going to owe, then you filed for the wrong reason.

An IRS extension is an IRS extension to file and not an IRS extension to pay. When you filed for an IRS extension, you should have sent a check for the amount you estimated you would owe. If that number was wrong, you would either have to pay the IRS more money or the IRS would owe you. If you didn’t make a payment before April 15th, you are going to owe penalties and interest now too.

Why did you miss the IRS extension deadline?
Did you simply just run out of time? That’s understandable. Some tax years are more complicated than others and life can get in the way of IRS paperwork sometimes. If you just need more time to file, just keep working on it. Yes, you may owe a Failure to File penalty now. However, if you get your tax return in and have it done right, you’re probably saving yourself from more painful headaches in the future.

If you missed the deadline because you just didn’t know how you would pay your debt, you have more work ahead of you. First of all, just get your return filed. The IRS is expecting a tax return from you now and, by not filing it, you are waving a giant red flag in their faces. If you can’t pay your whole tax debt, send what you can. Then, figure out how you are going to pay the rest.

There are a lot of tax programs out there for a lot of different situations. Start researching them. Better yet, consult a tax professional. My team is available to discuss your tax situation and help you figure out the best way to handle your missed IRS extension deadline.

The American Jobs Act & Your Small Business Payroll Taxes

noreply@blogger.com (The IRS Hitman) — Thu, 13 Oct 2011 16:47:00 +0000

What the American Jobs Act means for Payroll Taxes
Obama proposed on September 9th, 2011 to cut payroll taxes as part of his American Jobs Act. He proposes to cut payroll taxes down to 3.1% for all employers and declare a payroll tax free holiday for any business that adds new workers or increases the wages of their current workers. This would help regular taxpayers take home more money and dramatically decrease what employers have to shell out to the IRS on a quarterly basis.

But don't get too excited...
While it sounds like this could significantly improve tax matters for small business owners, you still need to be smart when it comes to your payroll taxes. I'm not saying that you should assume that your IRS tax issues will never get easier to handle. Instead, I'm saying that you should remember the classic military phrase "Prepare for the Worst and Hope for the Best." You will never be fully protected from IRS problems unless you prepare for those that could possibly arise.

Remember, Obama is still pushing for the cut in payroll taxes. It hasn't passed yet. Right now, you should be prepared to pay the current 4.2% that is in place for payroll taxes. If the American Jobs Act does pass, it should encourage you to hire more employees and reward some of your current employees with better pay. Just don't go crazy with it.

So, what should you?
Plan ahead! How will adding new employees and providing better pay to current employees help your business grow? What could be the drawbacks? If you can project that your company's profits will grow enough to cover in the long rung what a temporary payroll tax is covering now, then you are making some great decisions!

If you need help with your payroll taxes, you need to contact the best in the industry. Not only will the Hit Squad liberate you from your tax problems now, we will arm you against tax problems later!

Marijuana Clinic Taxed Like An Illegal Drug Trafficker

noreply@blogger.com (The IRS Hitman) — Fri, 07 Oct 2011 15:48:00 +0000

It is amazing just how aggressive the IRS gets when it comes to business tax. They know that’s where they’ll collect the BIG MONEY! Now the Federal government is using the IRS as a weapon against businesses that work in the medicinal marijuana industry.

A medicinal marijuana clinic in Oakland called the Harborside Health Center was recently slapped with a $2.4 million tax debt. An audit recently finished for tax years 2007 and 2008; disallowed all of their expenses. Why? There’s a tax code from 1982 that states you can’t claim cost deductions on your business tax returns, if your business traffics illegal drugs.

Steve DeAngelo, the CEO of Harborside Health Center, believes the IRS was out of line. His argument is that a medicinal marijuana clinic is legal and not a drug trafficking organization. In fact, even the auditors in charge stated that all product expenses were properly deducted.

DeAngelo has hired a tax attorney and has until December 22^nd to contest the audit findings. He’ll also need to prepare for more audits on 2009 and 2010. While DeAngelo is concerned with the government’s threats to shut down his business, he doesn’t seem to be reluctant to pay what he feels he owes in business tax. Just last month, Harborside established itself as one of the top ten taxpayers in Oakland. DeAngelo even stated he was delighted to contribute to his community.

The IRS is not going to stop with Harborside Health Center. They have already begun auditing other medicinal marijuana dispensaries. The people running these operations seem to be genuinely concerned that they will no longer be allowed to operate and that their patients will be left out in the cold.

These recent IRS audits coupled with the Federal government’s threat to seize any property being used for marijuana production have caused a big ruckus among legalized medicinal marijuana supporters. Even state officials are writing the Senate regarding this. Advocates argue that forcing dispensaries to shut down with outrageous business tax bills will only cause illegal drug trafficking.

Whether you believe marijuana should be legal or not, one thing is for certain: There doesn’t seem to be a limit to what the IRS will do to collect on business tax. If they can shut down an entire industry simply by performing audits, imagine what they can do to your business. This is why it’s important to be armed with information and work with a tax representation firm.

If you are having business tax problems , you need the biggest guns in the industry. That’s what the Hit Squad is here for. Don’t let the IRS shut down your doors and your dreams. We can help you with your business and payroll taxes, and keep the IRS away!

Avoiding IRS Collection Attacks When You Owe Back Taxes

noreply@blogger.com (The IRS Hitman) — Tue, 13 Sep 2011 16:58:00 +0000

So you didn't pay your taxes and you haven't filed for years...

Let me tell you, the IRS will be on your tail to make you pay if they haven't already.

If you have not filed or paid on your back taxes, you need to be prepared for IRS Attacks. It's not a matter of if they will hit you, but when they will hit you.

1) The IRS's First Move...

So when you don't pay the IRS, you will receive several notices in the mail. They might seem innocent enough, but you need to take them seriously.

Combat the IRS Attack: Act with the first letter, find help immediately if you don't want to incur the wrath of the IRS Beast.

2) The IRS's Next Move...

I'll assume from here that you ignored those initial "innocent warnings" from the IRS. Well now you're in for it, a letter sent via Certified Mail from the IRS is next. The Real Action will soon follow.

Combat the IRS Attack: If you've received a letter via Certified Mail from the IRS, actions that put your finances, your family, and your way of life in jeopardy are next. Take this seriously and work to resolve your back tax issues.

3) The IRS's Final Blow...

The IRS sent you letters, then certified letters notifying you they intend to levy. You were scared, and you ignored them. Now the IRS is hitting you with Wage Garnishments, Bank Levies, and Tax Liens.

Combat the IRS Attack: The IRS is only using Wage Garnihsments, Bank Levies, and Tax Liens because you ignored their letters and didn't contact them with a solution. You need to work with the IRS and compromise on a solution for repaying your back taxes.

The Fierce Battle: Go in With a Plan. Bring the Big Guns.

Once the IRS has it paws on your paycheck and bank account it won't let go without a fight. You have to go in prepared for battle, but remember what you're dealing with. Your own soldier going after the IRS and all of it's resources and revenue officers.

Go in armed! Work with tax representation firm. Think of them as your army. Just like my Hit Squad they're comprised of tax attorneys, accountants, and CPAs and they will write a battle plan for you that ensures success- then fight to make it happen!

* Attached photo depicts a real IRS Negotiation. I've been there, I've seen the carnage. Call, email, or fill out my form if you need help.