Sudden Strike: The IRS loves to strike without warning. All skilled predators share that trait. It’s hard to defend yourself against the jaws of the IRS when you’re unprepared. A big percentage of people who receive the IRS’s “Final Notice and Intent to Levy” letters in the mail had not idea they were even in IRS Debt. Avoid the fast downward spiral of IRS Debt. Learn the top 10 ways people are blind sighted by IRS Debt.

1. Prize Winnings

The IRS expects a cut of your prize winnings! If you win cash from Vegas, bingo, raffles, or the lottery, the IRS considers that income. And as you should already know, all income is taxable. I have seen people in debt for thousands of dollars because they didn’t pay their taxes on their cash prize winnings.

2. Inheritance

No, not even the money from your dearly departed Aunt or Uncle is safe. If you receive a cash inheritance, this is also considered income. And the IRS wants their cut. You’re not even safe if you inherit property or an estate. The IRS cannot ask for taxes on the Rolls Royce or house you inherit. But if you sell the car or the house, the money you earn will be considered income. And you will have to pay taxes on it.

3. Alimony

Your marriage has ended, but your ordeal with the IRS has not. The checks you get from your Ex spouse are completely taxable by the IRS. But if you are receiving Child Support payments from your ex spouse, this income is not taxable.

4. Forgiven Debt

Too bad the IRS isn’t as generous as your creditors. When credit card debt is too much to handle, you can negotiate with the credit card company and pay your debt off with a low settlement amount. But don’t dare breathe a sigh of relief yet. The IRS wants you to include the amount you saved by settling your debt as income! For example, if your debt was originally $10,000 but you settled it for $5,000, you have to report the $5,000 you saved as miscellaneous income.

5. Unemployment Benefits

Being unemployed is a stressful time. You need that small bit of compensation to pay your bills. But the IRS still wants some of that green. You need to report your unemployment benefits to the IRS as well.

Prevent It: These are the top 5 ways you can end up in debt with the IRS and not even know it. But there’s a way to prevent that issue. Fill out Form 1099 to report your miscellaneous income. There are different forms for each situation. For instance, Form 1099c is for Cancellation of Debt. If all of this is still overwhelming for you, don’t hesitate to look to a Tax Professional for help.

Now You Have The Smoking Gun…Use it!

Richard Close was an IRS-Hitman. He worked as a revenue officer for the IRS and his father was the head of the collections branch for 30 years; so it runs in the family. He left that behind and now he’s partnered with Tax Defense Network to help thousands of Americans with their tax problems. He gives the tips and tricks for you to fight the IRS and win! Visit him at: http://irs-hitman.blogspot.com or http://www.taxdefensenetwork.com or contact: email irs-hitman@taxdefensenetwork.com or 1-888-248-9058.

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