Have you ever wondered how much power the IRS actually has? The fact that the IRS is requesting quotes to buy sixty 12 gauge pump action shot guns for their Criminal Investigation Division should tell you how much power they have. Do they really need shotguns to enforce taxes? I can understand police using guns to protect themselves against armed criminals, but a tax criminal is no armed criminal.
Being a tax criminal is a white collar crime. Does this mean it is OK to hire people with shotguns to go enforce proper trading of stocks and that and proper handling of other finances? What is next for this country.
Anyways, if you are a shotgun dealer and would like to submit a quote to the IRS then send your best price and delivery capabilities to the following address:
Internal Revenue Service OS: A:P:B:W
Office of Business Operations
1301 Clay Street, Suite 810S
Oakland, CA 94612-5217
For those individuals that are reading this and have committed tax fraud or anything else that would consider you a tax criminal, we can help. You better request help now before the IRS gets those shotguns, your life depends on it. Free Consultation.
John Elway, the famous NFL Denver Broncos quarterback has been reported to owe taxes to the State of Oklahoma. John Elway is arguably one of the best quarterbacks of all time and is known for the “THE DRIVE,” when he went 98 yards to tie the Cleveland Browns in the AFC championship in 1987. He helped the Broncos win Super Bowl XXXII in 1998 and was inducted into the Hall of Fame in 2004.
Currently, John Elway is reported to owe almost 6,000 in back taxes ($5,885.97 to be exact). The tax lien was filed 6/20/2007 by the Oklahoma Tax Commission and lists his property in Englewood, Colorado as the main address. We were able to confirm it with Oklahoma County after it was reported by a few sources.
Here is the link to view the actual record on file with Oklahoma County.
The IRS has announced a new way for taxpayers to receive their refunds. Instead of receiving cash taxpayers will be able to receive up to $5,000 in US Series I Savings bonds. Does this sound like a way for government to keep funding its massive stimulus or way to help the middle class invest?
The way it works is you can request up to $5,000 in savings bonds which will dealt in multiples of $50. So if your refund is $4010 dollars say, then the remaining $10 dollars will need to be put into a bank account (anything left after dividing your refund by $50).
To elect to receive savings bonds, you will select this option on Form 8888 which has instructions for you to follow. Now the big question is this a good investment? Well, the answer is it depends. US I Savings bonds typically have a low return on investment but are indexed with inflation. Therefore, if the massive Federal spending and borrowing starts to push up inflation, then your savings bonds will be a good hedge against inflation. However, if inflation remains calm, you might find better uses of your money in terms of an investment. For advice it is best to speak with your investment adviser.
Evander Holyfield, the legendary boxer, owes the IRS over $145k for back taxes stemming from 00, 05, and 07 and 08. According to the Detroit News, and public records, the IRS slapped Evander with a tax lien on 8/14/2009 in Fayette County Superior Court which is located in Georgia. Evander’s residence somewhere in Fayetteville, GA was hit with the tax lien it seems.
With recent decreases in tax revenues the IRS is stepping up collection efforts more than ever, so you can be sure that the IRS will collect from you what is owed. The IRS has created an automated collection system that ensures that they will get what they want. Because of this system the IRS is known as the harshest (legal) debt collector in the United States.
Once the IRS gets wind of the fact that you failed to pay your taxes the their collection process starts. The IRS collection process is a very automated process and it is starts with being subtle about what is owed and will continue to get harsher and harsher until your taxes have been paid or enough assets have been seized to fulfill the outstanding tax liability. This collection process is very similar for most individuals but it can deviate course a bit depending upon your assets, financial situation, and past run ins with the IRS. Below are the standard steps the IRS collection system will follow.
Receive Series of Tax Assessment Letters: These letters will start off by simply stating what you owe in taxes and that you must pay. Each letter following the original will get a bit harsher in tone and a bit more threatening each time. Each time an IRS letter goes ignored you can expect the IRS to increase the severity of their next letter or action. Typically you will receive about 4 different letters that assess tax amounts owed before any actual action is taken by the IRS. These threatening letters will last for a period of 4-6 months before the IRS moves to their next collection tactic.
Receive an Notice of Federal Tax Lien: A tax lien gives the IRS legal claim to your assets in order to secure payment. This should not be taken lightly because it is very unlikely you will be able to get any company to lend you money since the IRS has first dibs on proceeds from your assets over other creditors. Many people do ignore the tax lien because it may not effect their everyday life, but if you continue to ignore it you can be assured the IRS will move to a harsher collection mechanism. (Sometimes this step can be skipped and the IRS moves right to #3 if they are dealing with a lot of money or think they are dealing with a very unresponsive taxpayer)
Receive notice of intent to levy: A tax levy is the final collection mechanism used by the IRS where they will forcefully seize your assets against your will. Once they issue a tax levy they have already labeled you as an unresponsive taxpayer and take collections into their own hands since you have failed to work with them to pay back the taxes. The IRS has several levy methods they use and they will choose the one that is easiest for them to collect taxes. The three forms of levy they will use are the following:
Wage Levy: They will contact your employer and require that they withhold amounts from your paycheck in order to pay down the tax liability.
Bank Levy: The IRS will contact your bank and require that they freeze funds in their in order for them to seize what funds are in there to satisfy the tax liability.
Asset Seizure: The IRS will seize assets of yours and sell them in order to satisfy the outstanding tax liability.
As you can see the IRS will not stop until they get what is owed to them. Hiding from the IRS and trying to prevent them from getting the taxes owed is extremely difficult. If you cannot pay your taxes it is a good idea to work with the IRS and pay back the taxes you owe on your terms instead of on their terms.
A good tax relief company offers their clients many benefits and can really help a taxpayer with major tax problems, however there are many bad tax relief companies out there that use shady tactics and do not give their clients the services they promized. It is important to pick one that will give you the best service for your dollar. Here are a few red flags to watch out for when looking for a tax relief company.
Don’t offer a free consultation or free tax analysis: Many of the more reputable companies will offer this because they want to get to know your tax situation and financial situation before they take you on as a client. There are cases when a tax relief company would not be a good choice for a taxpayer. An ethical company will try to understand your situation before saying they can help you. Some companies rush to get you as a client before even knowing why you owe taxes and what your financial situation looks like.
Promise an offer in compromise: An offer in compromise is a great tax settlement that is only available to people who really deserve it. If the tax company promises you an offer in compromise settlement right away, you can turn your back and run. Acceptance rates are very low for this type of filing and even people that are good candidates regularly get denied, so therefore no tax professional can guarantee this type of settlement.
You were contacted by the company through a cold call: Companies that use high pressure sales tactics to get clients typically don’t have good services to back up their claims. They will use hard sell tactics and pretty much say anything in order to get you as a client. Hiring a tax relief company should not be rushed and it would be best if you avoided a company with these types of marketing tactics.
Watch out for large retainer fees: Some companies will charge large upfront fees before any services have been provided, this is not an industry norm. Sometimes they will require a small retainer fee in order to get started on the case but never a large portion of the total amount that will be owed.
You feel rushed when talking to them: This can be a red flag and could mean that they are taking on too many clients and won’t allocate enough time to successfully work on your case. Sometimes it is a good sign when they are a bit busy because it can be a sign that they actually do offer good services and they are in demand, but sometimes they tend to get greedy and take on too many customers. Many times companies will get really busy during the latter part of tax season. If you know you have a problem it is better to contact a company before this time so they don’t try to rush your case.
Bad Ratings Online: Many tax relief companies have done terribly with the better business bureau and other online complaint sites. Many top tax resolution companies actually have an F rating, which means there have been many unsatisfied clients and that company has not taken the appropriate actions in order to clear up these problems. It is a good idea to look at reviews and look for bad information written up on the company on sites such as rip off report or the BBB website.
Avoiding any of the above red flags can greatly increase your chance of finding a great tax relief company. Feel free to talk with multiple tax relief companies that offer a free consultation or tax analysis, you will start to get a good feel of which one will provide you the best service as long as you keep the things above in mind. Be sure to ask a lot of questions and move onto the next company if you don’t agree with the way they are handling your case.
If you would like a free tax consultation from us, please contact use by filling out the contact form or by calling the number on the site. Our tax professionals will give you a free tax analysis and an overview of what they feel they can do for you.
Each year that passes the IRS gets more and more efficient at catching non-filers. If you have gotten away with not filing a tax return in the past, don’t expect to in the future. Even if you missed the past few years, it is in your best interest to file those returns because the IRS will likely catch up with you sooner or later. If you don’t file a return can take up to 3 years for the IRS to finally contact you, by this time it is likely that you have racked up a huge about of interest and penalties on top of what is owed, or you will ruin your chances of getting a refund that was once due to you.
The IRS uses a system called The Information Returns Processing (IRP) System. The IRP system collections information from third parties and stores all that information in one massive master file where it will later match up that information with individual taxpayer information that is provided. If you had any income from anyone else it is very likely that it will be reported to the IRS and this is the information the IRS will sooner or later use to track you down for unreported items or unfiled taxes. Most companies that pay you any type of income such as salary, pension, interest, dividends, etc, will require you to provide them with your SSN and tax information before they pay you anything, which is because the IRS requires they report this information to them annually. Below are some common third parties that report your information to the IRS.
Your employer: If you have a job, your income will be reported by your employer.
Brokerage: If you own stocks, bonds, money market funds,etc, all proceeds will be reported.
Social Security Administration: If you receive social security benefits this information is sent to be stored in the IRS master file.
Casino: If you won a large amount of money a casino will likely require you to fill out your information before they pay you out and will later send that info to the IRS.
Unemployment: If you received unemployment, this income will be sent to the IRS to be checked off the master list.
Business you are a partner of: Are you part of a business? Your K1 information will be reported to the IRS when the business files their annual tax return.
Pension Funds: All pension income is reported annual to the IRS.
IRA: When you withdrawal from your individual retirement account these amounts are taxable and reported to the IRS.
The above list can go on and on depending upon your situation. It is very likely that you will have at least one company or person that is required to report payments to you over the year and this is the information the IRS will use to eventually find you if you did not file your taxes. It does take time for the IRS to analyze all this data and match off everything, but each year that passes their technology gets better and faster and they have been catching a greater amount of people at an increasing rate.
If you have unfiled taxes it is a good idea to get started right away with getting back on track. Penalties and interest add up very quickly on unfiled returns if you owe money. If you don’t owe money, you only have 3 years to claim a tax refund. So if you ever wondered if the IRS will find out you didn’t file, the answer is yes, it may take time but you can be assured they will be contacting you.
Brooke Shields is the latest Victim of the IRS tightening their reins on Celebrities. Recently the IRS has filed a tax lien against Shields and her husband Christopher Henchy for unpaid IRS taxes from 2004 and 2005. This shows that the IRS is pretty slow in taking actions against individuals but lately they have been going on a rampage of cracking down on individuals that owe taxes, especially celebrities (check out list of 2009 Celebrities With Tax Problems).
The break down of what is owed:
2004: $4,392 2005: $5,933 Total: $10,325
For those that don’t know who Brooke Shields is, she is an actress and model that is known for her roles in Pretty Baby, The Blue Lagoon, Suddenly Susan, That 70’s Show, Hannah Montana and many others. She had many problems in 2005 which could have been the cause of her failure to report all income or pay her taxes properly. In 2005 Shields publicized her battle with postpartum depression with the recent child birth and the death of her father 3 weeks after.
Celebrities seem to be a huge target for the IRS lately. It is either the celebrities are having a harder time paying their taxes or it is just proof that the IRS is stepping up collection actions in order to collect more taxes. The IRS did hire more agents this year which is giving them the ability to catch more individuals than ever with tax problems.
When you finish filing your tax return you may find that you owe the IRS money. If you then find out that you cannot pay these taxes in full, this is not a good position, but all in all, one that you can work with. Of course, you need to pay your debt sooner rather than later. There are many ways to pay what you owe, and you should definitely consider all of them.
The IRS may tell you that it is best to put tax debt on a credit card as opposed to opting for a payment plan. While this may sound like a great idea, you do not want to jump the gun and listen to everything you hear.
There are a few reasons why it is not a good idea to put tax debt on a credit card. They include:
A higher interest rate than what the IRS offers. When you put your debt on a credit card you will probably pay more in interest than you would if you were to apply for an installment agreement. This is definitely true if you have bad credit and your interest rate is 15 percent or more. The IRS wants you to put the debt on your credit card so they get paid. Although it may benefit them, it does nothing good for you.
Once you move your debt to a credit card there is no way to settle with the IRS. Simply put, this debt is now on your shoulders and the IRS does not care what you do. As noted above, they push people towards credit cards because they get what they, the money. Before you decide on any option, no matter what it may be, you may want to attempt to settle your debt with the IRS. Remember, the moment that you pay with a credit card your chance for settling goes out the window. Do you really want to give up this right just so you can pay a high interest rate?
Service fees. The companies that accept credit card payments on behalf of the IRS, such as Link2Gov, are going to hit you with a service fee of 2.49 percent or more. And yes, this is on top of the interest that you will pay to your credit card company.
These three details should show you why it is best to avoid paying your tax debt with a credit card. Although the IRS may suggest this, it is probably not in your best interest.
If you need help finding the best way to pay the IRS taxes you owe we can help. One service we offer is IRS payment plan help. We will analyze your financial situation and find the best solution that fits your needs, not the wants of the IRS.
New York State, in an effort to recoup state back taxes and increase revenues in this tough economy, has implemented a program called “PAID” which stands for the “Penalty and Interest Discount” Program. Basically, NY taxpayers have until 3/15/10 to make tax payments on NY back taxes owed in order to reduce penalties and interest that have accrued. Here are some of the details in terms of savings:
Save 80% on NY back tax penalties and interest for tax bills issued on 12/31/03 or before
Save 50% on NY back tax penalties and interest for tax bills issued after 12/31/03 but on or before 12/31/06
With NY running deficits, not only will compliant taxpayers help the state but they will also help themselves by preventing any further negative consequences of inaction like tax levies, tax liens, and continual accrual of interest. If you are interested in reading more about the program that expires March 15th visit this link.
If you have already entered into an Installment Agreement before the start of PAID, you can still take advantage of this program’s savings but you will need to make full payment of the total remaining balance. If you have questions or need a tax professional on your side feel free to request a free quote or give us a call.
Have you ever wondered how much power the IRS actually has? The fact that the IRS is requesting quotes to buy sixty 12 gauge pump action shot guns for their Criminal Investigation Division should tell you how much power they have. Do they really need shotguns to enforce taxes? I can understand police using guns to protect themselves against armed criminals, but a tax criminal is no armed criminal.
With recent decreases in tax revenues the 
A good tax relief company offers their clients many benefits and can really help a taxpayer with major tax problems, however there are many bad tax relief companies out there that use shady tactics and do not give their clients the services they promized. It is important to pick one that will give you the best service for your dollar. Here are a few red flags to watch out for when looking for a tax relief company.
Each year that passes the IRS gets more and more efficient at catching non-filers. If you have gotten away with not filing a tax return in the past, don’t expect to in the future. Even if you missed the past few years, it is in your best interest to file those returns because the IRS will likely catch up with you sooner or later. If you don’t file a return can take up to 3 years for the IRS to finally contact you, by this time it is likely that you have racked up a huge about of 
Brooke Shields is the latest Victim of the IRS tightening their reins on 
When you finish filing your tax return you may find that you owe the IRS money. If you then find out that you cannot pay these taxes in full, this is not a good position, but all in all, one that you can work with. Of course, you need to pay your debt sooner rather than later. There are many ways to pay what you owe, and you should definitely consider all of them.
