No Way Out: Ruth had been working as a pharmacist for two years. She was making good money, but still had lots of bills to pay. She was in school for 4 years and was $300,000 dollars in debt with student loans. On top of that debt, she owed the IRS money. But she didn’t know how to pay it.

Letter after Letter: Ruth knew she owed the IRS, but she didn’t know what to do. So she ignored her IRS debt. The IRS sent 2 notices, both of which she ignored. She even made the fatal error of ignoring a letter entitled, “Final Notice and Intent to Levy.”

Payday: Payday had come, and Ruth had lots of bills to pay. But was horrified by what the paycheck read. It was only half the amount it usually was. She shouldn’t have ignored the IRS. They didn’t receive a payment, so they took the money by force.

Calling the IRS: Ruth called the number on her IRS notice. After being on hold for hours, she reached her assigned Revenue Officer. She tried to explain her situation, but the IRS Hitman was not sympathetic. He was only interested in one thing. And that was how much she could pay right now. Frustrated, she gave up on contacting the IRS directly.

When All Else Fails: Desperate to get her full paychecks again, Ruth decided to contact a Tax Professional. With the help of a qualified Tax Professional, she was able to set up an “Installment Agreement” with the IRS and lift the Wage Garnishment. She continued to pay a monthly amount to the IRS, and garnishments stopped.

Installment Agreement 101: If you’re in a situation similar to Ruth’s, you’ll want to know if you qualify for an Installment Agreement. It’s very hard to qualify for this program. You have to provide documents detailing your entire financial situation. The documents have to prove why you cannot pay your taxes on time. Also, make sure you filed your taxes for the past 5 years.

Ignoring your debt will not make it go away. Pharmacists work long hours, and they are usually too tired to worry about their finances when they are at home. But the IRS won’t take that as a legitimate excuse. Act now, and don’t let the IRS Garnish your wages.

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.

The Open Road: Truckers are often out on the road. Whether you’re hauling a skateboard or a parking lot, it’s very hard for them to get to their mail. So if they get a letter from the IRS reading “Notice and Intent to Levy,” they won’t receive it. They may not know the wrath of the IRS until it’s too late, and their bank account has been emptied. If you’re a Truck Driver in Debt to the IRS, read on to learn how you can get out of it.

10 is the Magic Number: The Statue of Limitations to collect on IRS debt runs out after 10 years. However, don’t think this stops the IRS from trying to collect on the debt. Often, a Truck Driver will not be aware their debt has expired when the IRS calls them. So take a good look at your paperwork and make sure your debt is still valid.

Offer in Compromise: Depending on how old the debt is, a Trucker has a chance at qualifying for an Offer in Compromise. To qualify, you have to prove you cannot pay the debt in full. Be careful, submitting an offer in compromise extends the amount of time the IRS can collect on your debt. Not to mention that fact that you have to send in 20% of your offer, and that money is nonrefundable. So double check your paperwork and make sure you don’t leave out even one small detail.

Hardship Plan: Can’t pay the debt? And can you prove you cannot pay your debt for months to come? You might qualify for a hardship plan. Maybe your paycheck goes to taking care of your family. If you pay the IRS now, you will not be able to provide your family with basic needs (housing, food, basic clothing). Prove this and the IRS will cease collections for 6 months to one year. After that time period, the collection efforts start again. So use your time wisely.

Caution: I have already stressed this, but it’s important. You have to make sure you don’t leave anything out when you apply for any of the plans above. The programs are really hard to qualify for, and the IRS is going to want to know every single detail about your finances. If you’re always out on the road and have no time to fill out pages of paperwork, it might be a good idea to hire a qualified Tax Professional. It’s hard for over-the-road Truckers to keep on top of their taxes, but help is out there.

Now You Have the Smoking Gun…Use it!

Richard Close was an IRS-Hitman. He was a revenue officer who took out anyone that owed the IRS money. He left that behind and now helps thousands of Americans beat Uncle Sam and save thousands of dollars. The IRS-Hitman can help you with your tax debt problems. He has partnered with Tax Defense Network to offer free advice and tips to get you tax debt settled one and for all with the IRS. Visit at: http://www.irs-offer-in-compromise-hq.com or http://www.taxdefensenetwork.com or call 1-888-248-9058.

Article Source: http://EzineArticles.com/?expert=Richard_Close

It Starts: It took years, but Julia finally payed off her student loans. She had ignored some other debts to pay off the loans. She even ignored some letters from the IRS, they didn’t seem too important. She even ignored a letter entitled “Final Notice and Intent to Levy”…

Locked out: Julia had waited all week for this day. It was payday, the best day of the week. But her trip to the bank left her in shock. Julia didn’t realize how serious those letters from the IRS really were. The IRS had frozen her bank account!

The One and Only: Julia needed a reality check. When you have IRS Debt, their payments come first. The IRS is the most powerful collections agency in the world. Other creditors can call you but they can never seize the money in your bank account without warning!

Act Fast: When the IRS places a Bank Levy on your account your account is frozen and you have no access to your money. You have 21 days before the IRS cleans out your bank account. This is the time they give you to contest the levy or the debt. Julia took advantage of this limited time frame and acted swiftly.

The Hardship: Julia had two kids at home to take care of. The money in her bank account had to be used to buy food for the kids and keep a roof over their heads. Julia qualifies for a hardship plan. In order to qualify, you have to prove you will go without basic needs (which include: food, housing, basic clothing, school supplies, transportation, work tools.) Julia tried to fill out all the IRS paperwork proving she needed to be in Hardship Status, but it was all over her head.

Help Is Here: With the help of a Tax Professional, Julia realized she qualified for a Hardship Plan. The IRS did not levy the money in her bank account, and granted 6 months to get her finances in order before the IRS continued the collection process.

Bite the Bullet: The lesson is simple. Pay the IRS first! Julia wanted to get her Student Loan debt out of the way, but she didn’t think about the IRS. Don’t forget, the IRS does not need to go to court to levy your bank account or your paycheck. So you have to act fast!

Now You Have The Smoking Gun…Use it!

Richard Close was an IRS-Hitman. He was a revenue officer who took out anyone that owed the IRS money. He left that behind and now helps thousands of Americans beat Uncle Sam and save thousands of dollars. The IRS-Hitman can help you with your tax debt problems. He has partnered with Tax Defense Network to offer free advice and tips on removing wage, bank, and tax levies; and arms you with the skills to slash your tax debt. Visit at: http://www.irs-tax-levy-hq.com Contact: http://www.taxdefensenetwork.com or call 1-888-248-9058

Article Source: http://EzineArticles.com/?expert=Richard_Close

Starving Artist. The phrase “Starving Artist” holds true. It’s extremely hard to find a job in the art field. An artist can be doing really well one year, and the next they can be dirt poor and barely able to pay their bills. So what happens when an artist owes money and can’t pay? And how can they fight back against the IRS?

Money, Seized! If you ignored notices from the IRS, they’ll roll up their sleeves and get nasty. The IRS has the power to seize money from your bank account with their Bank Levy. They can take a big percentage of your paycheck with their Wage Garnishment. They can even send a Field Officer to your door to collect your assets. How do you prevent any of this from happening?

Get to Work!: Get your head out of the sand. Even if you do not have money to pay the IRS, you have to reply to their notices. If you refuse to, you risk any of methods of collections listed above happening to you.

Help for Artists: Here are methods you can use to keep the IRS from knocking at your door:

Offer in Compromise: Artists are good candidates for the IRS’s Offer in Compromise program. This program allows you to settle your IRS Debt for a lower amount. This is a hard program to qualify for, you’ll have to fill out a 44 page document and prove you cannot pay your debt in full. You’ll also have to include 20% of your offer. If you can’t even afford to do this, there’s another option.

Hardship Plan: Need to buy time? The Hardship plan, or “Suspended Collections” plan, can stop the IRS’s notices and calls for 6 months to 1 year. Again, you have to prove true hardship. You have to prove to the IRS that you will go without you Basic Needs (Food, Housing, Basic Clothing, transportation, and medical expenses/insurance, school supplies, and work tools.) This is not a permanent solution. As soon as your “grace period” is up, the IRS collections process will resume full force!

Prevention: Artists have unpredictable income. If you’re working freelance and land a big project with big pay, don’t forget the IRS. They want their cut, so keep money in the bank for when tax time rolls around. Don’t forget, if you don’t pay your bills on time, interest and penalties can easily triple your tax debt leaving you penniless. But on the plus side, maybe all the depression you feel can yield some great artwork!

Now You Have The Smoking Gun…Use it!

Richard Close was an IRS-Hitman. He was a revenue officer who took out anyone that owed the IRS money. He left that behind and now helps thousands of Americans beat Uncle Sam and save thousands of dollars. The IRS-Hitman can help you with your tax debt problems. He has partnered with Tax Defense Network to offer free advice and tips on removing wage, bank, and tax levies; and arms you with the skills to slash your tax debt. Visit at: http://www.irs-tax-levy-hq.com Contact: http://www.taxdefensenetwork.com or call 1-888-248-9058

Article Source: http://EzineArticles.com/?expert=Richard_Close

Extortion: Teachers make the future of this country. They work long hours and possibly have the lowest pay of all college-graduates. Because of this, teachers rarely have IRS debt due to the low pay they receive.

Getting Ahead: Most teachers have to work two jobs (usually teaching summer school or tutoring) to get ahead. It’s cruel, but when teachers have that extra income, Uncle Sam wants his cut. So what can they do when the cash is gone, and the IRS won’t quit?

Prove You’re Poor: Delay the collections process. Prove to the IRS that paying them would make you go without your basic needs and the IRS will consider placing the account in “hardship” or “currently not collectible” status. Basic needs only include: food, clothing, housing, transportation, and medical expenses/insurance, school supplies, and work tools. That’s it.

Be Honest…because if you lie about a Hardship Status, you could face criminal charges. The IRS is going to review your documents with a critical eye. And if you’re lying, they’ll know it.

Not Permanent: No more debt, no problems. That’s what some people think of the Hardship Status. And it’s wrong. This is not a permanent solution. Your Taxes are still due. The IRS is going to review your status every 18 to 24 months to see if the hardship is still warranted. So be prepared.

Be Thorough: Document everything! The IRS is going to run a fine toothed comb through all your assets and incomes to see if you can pay on your debt. You are going to need to provide ample documentation and proof to win this. Prove that further collections efforts will land you in the poor house.

Be Careful: You don’t want to be denied. But if you just make one small mistake while filing the IRS forms, your application can be dismissed. Check and double check everything you send to the IRS to make sure there’s no errors.

Now You Have the Smoking Gun…Use it!

Richard Close was an IRS-Hitman. He was a revenue officer who took out anyone that owed the IRS money. He left that behind and now helps thousands of Americans beat Uncle Sam and save thousands of dollars. The IRS-Hitman can help you with your tax debt problems. He has partnered with Tax Defense Network to offer free advice and tips to get you tax debt settled one and for all with the IRS. Visit at: http://www.irs-offer-in-compromise-hq.com or http://www.taxdefensenetwork.com or call 1-888-248-9058.

Article Source: http://EzineArticles.com/?expert=Richard_Close

IRS debt relief is an option for getting out of debt that can be used by many Americans. Many people are getting further into debt everyday and it is important to know there can be a way out. It is harder to make ends meet now more than ever because of the rising gas prices, it is making everything form food to travel out of reach for many people. It is easier to charge the things we need to have but what happens is we get in a situation were we have large credit cards bills and not enough money to pay them every month. It is time to take control of your finances and get out of being in debt with the help of IRS debt relief.

However, IRS Debt Relief is something everyone should take care when dealing with. Great responsibility comes with having a credit card but the number of people who now have credit card debts is at an all time high; cards have become easier to obtain and more tempting to use, which is a lethal combination. With the debts rising, it is not surprising that individuals have started to realize the financial problem they have created by the constant and indiscriminate spending they have carried out. Once you have finally realized the mess you are in then it only remains to do something about it by sourcing quality IRS debt relief.

Debt is a wide spread epidemic that plagues the United States. Most families spend more than their monthly income, which puts them in dangerous territory-especially if something unexpected happens. The tricky thing about debt is that it happens so quickly. It seems that all of a sudden you are increasingly in debt. The reality is that it takes quite a bit of effort and time to get out of the debt that you so quickly accrued. The process of undoing this with IRS debt relief will take patience and dedication because one slip and you will be back under.

From my personal experience with reducing debt, I honestly suggest you visit Debt Relief America at the following website: http://www.debtreliefamerica.org Learning the techniques found there was the turning point for me, and I think it will be the same for you.

Article Source: http://EzineArticles.com/?expert=Warren_Frump

Do you ever get that sinking feeling? When you’re in debt to credit card companies, finance companies, etc…you see all kinds of ads promising to consolidate your debt and get you to pay it off for one payment per month. But how are these debt consolidation firms when it comes to dealing with the IRS?

Getting cheated…As a former IRS-Hitman I’ve watched many people get taken by so called “pennies on the dollar” tax settlement, only to have the IRS deny their request and the company that helped them has run off with their money.

Beware of all quick fixes… Those sad stories extend beyond the IRS debt help companies to the debt consolidation companies. They also promise to settle your debt for a low monthly payment and they claim to “negotiate” with your creditors for one low monthly price. Essentially what they’re doing is they’re buying your loans, and then giving you a loan with an interest rate that isn’t the best, and if you miss a payment or are late that interest rate will skyrocket!

What about that IRS debt? First of all let’s take a look at just who can negotiate with the IRS, and it isn’t some legal aid that works at a debt consolidation company. The IRS will only deal with three types of professionals when it comes to your tax debt: tax attorneys, CPAs, and licensed enrolled agents. That’s it. So if these agencies can’t help you with your IRS debt who can?

Who can help? There are professional tax relief services out there that can help, but many of them are as shady as the debt consolidation companies. Always beware of “pennies on the dollar” promises from anyone you turn your credit or IRS debt over to. And always check with the Better Business Bureau.

Don’t ignore the IRS… The thing is the debt consolidation companies can’t help with your IRS debt. And more importantly your IRS debt can turn into something that makes your other entire debts combined pale in comparison.

For example: you owe more in combined credit card debt than you owe the IRS. You decide since that’s the higher amount you’ll take care of that first. Let’s even go a step further and say you get a reputable debt consolidation company on your side. Now during this time you’ve been putting off your IRS debt and it’s growing. More importantly those IRS revenue agents are getting tired of you dodging them.

This is where you debt consolidation plans go up in smoke. The IRS imposes a tax levy on your wages or bank account. You now have no way of paying your “low monthly payment” and everything falls apart. The IRS is the biggest collection agency in the World and there isn’t any other collection agency that can match the Internal Revenue Service.

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.

Article Source: http://EzineArticles.com/?expert=Richard_Close

One day at a time…You have a debt to the IRS and you’ve been in a monthly payment plan for a couple of years. You’re paying what you’re able, and your tax refunds from the last couple of years have been applied to your debt. However your IRS debt doesn’t seem to be going down and you are understandably frustrated.

Adding on and on…The problem is that the IRS is constantly adding on interest and penalties to your debt. Your debt is accruing about 2% per month in combined interest and penalties for a total of 24-25% added on to your debt each year. For example if you owe $10,000, after one year your debt increases to $12,400. And the best part is that the IRS applies any payments or tax return refunds to the interest and penalties first! That can cause the principle of the debt to go down slowly.

In the above example you would have to pay $200 per month just to cover the interest and penalties. What can you do? Here are three possible solutions.

If you’re able to get a bank loan that can be a great help. Even if your credit is in trouble a bank loan’s interest would be far lower than the IRS, and you would see an actual decrease in the debt. Also if you can pay off the debt with a bank loan, then you’ll actually get back your tax refunds each year.
But what if you can’t get a loan? You can get the assistance of a tax attorney or CPA to negotiate with the IRS on your behalf. Tax attorneys and CPAs have the ability to work directly with the IRS, and they can work to make sure your payments are going to the actual debt principle, and not to the interest and penalties. Since the principle will actually be lowered, then the interest and penalties will be less.
However hiring a tax professional may not be an option either. Worst case scenario is that you may have to wait for the Statute of Limitations to run out on your debt. What’s the Statute of Limitations? The IRS has a limited time of 10 years to collect on a debt. After those 10 years the debt is released, and you don’t owe any further money. However the Statute can be extended under several factors that you can read about in my article, “IRS Tax Debt and the Statute of Limitations: 10 is the Magic Number.”

Take a load off…These are the best solutions to not only get your actual debt reduced, but they can give you a feeling of hope that you can get out of your IRS debt trouble.

Now you have the smoking gun…Use it!

Richard Close was an IRS-Hitman. He was a revenue officer who took out anyone that owed the IRS money. He left that behind and now helps thousands of Americans beat Uncle Sam and save thousands of dollars. The IRS-Hitman can help you with your tax debt problems. He has partnered with Tax Defense Network to offer free advice and tips to get you tax debt settled one and for all with the IRS. Visit at: http://www.irs-tax-settlement-hq.com

Contact: http://www.taxdefensenetwork.com or call 1-888-248-9058

Article Source: http://EzineArticles.com/?expert=Richard_Close

Most citizens in the US comply with the tax authorities on a voluntary basis. They file their tax returns and pay whatever is due in order to keep the country strong and financially stable.

The most common reason for failing to keep to the tax rules is a lack of information. And in most cases the IRS will take steps to help the taxpayer comply with all the relevant rules.

But if can happen that you get into a position where you owe the IRS an amount of money that you can’t pay. For example, your tax returns might have been incorrect for a number of years, meaning that you’ve paid less tax than is due. If that happens over a number of years, the outstanding amount can be substantial when penalties and interest are taken into account.

Well, the good news is that there are IRS debt relief options that can help people or businesses in your position.

IRS Debt Relief 1) IRS Tax Relief Settlement: This will allow a taxpayer to settle their debts for a percentage of the amount owed, depending upon their age, assets and personal budget.

IRS Debt Relief 2) Offer In Compromise: This scheme was developed by Congress to allow taxpayers a one time only chance to clear their debt to the IRS for a fraction of the actual amount due. The IRS will look at your case and will, according to certain guidelines, agree to settle your debt for a certain amount. However, as you would imagine, there are certain obstacles that must be overcome before your tax debt is reduced.

Tax legislation gives the IRS power to settle federal tax liabilities for less than the true amount when the taxpayer can show exceptional circumstances. For example, if they can show that tax collection would be unfair, inequitable or impose financial hardship.

The main problem with this scheme is that it’s extremely popular. In fact so many unsuitable cases were submitted that the IRS, in an attempt to discourage OICs, started to investigate each case closely. However, since the early 1990s, due to a mounting backlog of uncollected taxes, the IRS has eased their requirements in order to settle more cases.

In fact, the OIC scheme is one of the most powerful IRS debt relief tools available to taxpayers. Millions of dollars have been saved by taxpayers who have used the Offer in Compromise scheme. However, before you think that this is the answer to all your problems, let me warn you that the IRS settles less than one percent of tax debts through the OIS scheme.

You can submit your own OIC application, but due to the complexity it’s best to secure professional help. A tax attorney is invaluable for their experience in preparing applications and negotiating with the IRS. They may also be required for an appeal if your case is rejected.

Nine times out of ten, a tax professional is worth more than their fee, because the IRS will take advantage of someone who isn’t entirely sure of the process.

There are three main categories that can be used to justify reducing an overdue tax account.

a) If there’s doubt whether the tax is due

b) If there’s doubt whether the full amount of tax will ever be paid

c) The tax assessment is correct, but due to certain circumstances (eg financial hardship) the taxpayer can’t pay

If you go for the third option (financial hardship), your OIC application should be successful if you can show that the amount of tax owed is more than you could pay off in 5 years.

Once an application is made, the IRS looks at all the payment options open to the taxpayer in relation to the state of their personal finances and takes a decision; Would they rather have part of the tax debt or none of it? Their decision is largely based on their evaluation of whether the taxpayer will ever be in a position to pay the full amount.

The IRS then make an offer to the taxpayer – An amount that they think the taxpayer can reasonably be expected to pay in light of their financial situation.

IRS Debt Relief 3) Payment Plan: In some cases, the IRS will give taxpayers time to pay their tax debt when they are convinced that they can’t settle their liability in one payment.

If you are unable to pay your tax liability, your account can be flagged “not currently collectible”. This means that the IRS will not pursue collection until you are in a position to accept a payment plan or an Offer in Compromise is made.

IRS Debt Relief 4) Penalty Abatement: If you can’t pay your outstanding tax debt due to certain circumstances that are out of your control, it’s possible to challenge the interest and penalties that have been added to your account. This will help to reduce the size of your tax liability.

a) Statutory Exceptions – Tax code changes from minor to major

b) Hardship beyond the taxpayer’s control – eg bad tax advice, fire, flood, natural disaster etc

c) IRS errors/mistakes

d) Reasonable cause – Death, serious illness, ignorance of the law etc

Again, due to the complexity of this scheme, it’s advisable to appoint an experienced tax advisor. Applications for penalty abatement have to be extremely specific and comply with all the IRS rules and regulations.

by Stuart Laing

Copyright (c) Get Out Of Debt.