Bad Credit Blog

The IRS recently published its “Dirty Dozen,” a list of the top tax scams. Some of them are used to con taxpayers like you, while others are employed to con the IRS itself.Memorable movie characters like Danny Ocean, Lilly Dillon, and Thomas Crown, glamorize the art of the heist. Real life proves, however, that crime is a lot grittier than these smooth-talking, martini-drinking characters reveal. According to the Internal Revenue Service (IRS), the real-world tax scammer actually spends his time writing phony emails, and clinging to childish misinterpretations of tax laws. Every year, the IRS publishes a list of the most flagrant tax scams. This year’s entries include scams that target unsuspecting taxpayers, as well as scams used to get out of paying taxes to Uncle Sam. Here’s a snapshot of the top three:

Phishing

The phishing con runs like this: The bad guys send out official-looking emails that pose as IRS communications. From within the email, the taxpayer is directed to an official-looking website, and asked to supply personal information. Most likely, the email will make a soft threat about what happens if the individual fails to comply with the request. Unsuspecting taxpayers-unaware that someone would go to such lengths to impersonate the IRS-read the email and provide the requested information, which often are credit card , bank account, and Social Security numbers . The con artists record the information provided, and use it to steal the taxpayer’s identity , open up fraudulent credit accounts , and siphon money out of bank accounts. To avoid falling victim to such a scheme, never respond to an email that’s “from” the IRS. Since they don’t contact taxpayers via email, you don’t have to worry about any repercussions. Just forward the email to phishing@irs.gov and move on with your day.

Economic stimulus payment scam

Next on the list is a similar scam related to the Bush administration’s upcoming tax rebate. Con men posing as IRS officials contact taxpayers by phone or email regarding the tax rebate program. They claim that the taxpayer won’t receive a rebate check without verification of personal information.

This scam is also easy to avoid. Don’t provide bank account numbers or personal information to anyone who claims to be involved with the tax rebate or economic stimulus program. Again, contacting taxpayers in this manner is not IRS policy; the IRS will use the data from your 2007 tax return to send you your rebate check.

Weightless, invalid arguments

The IRS calls them frivolous arguments-a set of not-so-clever excuses employed to avoid paying taxes. These include things like “paying taxes is voluntary,” and “the First Amendment allows me to refuse paying taxes on religious grounds.” For more information on these arguments and why they’re invalid, visit www.irs.gov. There’s no glamour in trying to rip off taxpayers or the IRS. Scammers are better off putting their energies into their tax returns so that they don’t get hit with penalties and interest.

REF: MortgageLoans.com

BY: Catherine Brock

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Tax time is one of the most dreaded times for most Americans. Especially if you owe back taxes.

Many people think owning their own business would be a dream come true. I can tell you it is rewarding because for over 20 years I owned my own company and enjoyed it very much. But one thing most business owners fail to take into consideration is what the IRS politely calls the “self-employment tax,” which by another name is Social Security. That takes a big 15% bite out of every dollar of profit and if you fall behind on this its murder.

Failure to pay and underpayment of taxes are the two most common reasons people owe back taxes. Regardless of the reason, owing the government money can be very scary and is serious business. There is no easy fix but the sooner it is confronted and solved the better. The government does not like to wait for its’ money and sooner or later you may find that your bank account is seized and/or a lien is put against your assets (like your home).

The last year we were in business, before the economy tanked in the early 90’s, we got behind in our taxes. One day we received a call from a vendor who said our check had bounced. We knew we had money in our account so we called the bank. That’s when we found out that the IRS had frozen our account and taken all the money - and there was nothing we could do about it! Believe me, you don’t want to get yourself into this situation.

Note: If you think bankruptcy will solve your back taxes problems, it won’t. Bankruptcy is handled in federal courts and the IRS just won’t recognize bankruptcy as a legal way out of your tax problem.

So how does one go about repaying back taxes, especially if you don’t have the money to do so? Tax relief solutions do exist and will negotiate a tax repayment schedule and help you come up with a plan for future payments to keep the government from stepping in.

Tax Debt Relief Negotiations

The federal government would rather have a portion of what you owe in back taxes and clear the books than to leave it - and have it grow through penalties and interest - and never get anything. It is this that allows negotiating between the government and the taxpayer.

But it is better to have an experienced negotiator work towards resolving your back taxes than to try to do it yourself. You will come out better off by having a third-party negotiate for you.

Think you can’t afford this? Consider the option again; you will be far ahead even with the fee they charge. The IRS will not be looking out for your interest like your negotiator will, and from experience, the negotiator will know exactly how far the IRS will go.

Finding an expert in the field is a good first step towards paying off your back taxes and fixing the problem. If your problem isn’t handled right serious legal troubles are on the horizon. That’s why we did our research and we recommend wholeheartedly the CantPayIRS.com.

Ensuring The Problem Is Solved In The Future

After you have negotiated a structured payback of your back taxes, the next step in tax debt relief is planning for all future payments to be paid promptly and correctly.

The government is willing to work with a taxpayer the first time but the same problem again the next year and the next year won’t get a sympathetic ear. So this problem must be handled properly.

If you haven’t filed taxes in years or are seriously behind on your taxes it is imperative that you get the help you need NOW! Contact a specialist like CantPayIRS.com and get them started helping you fix your back tax issues right now.
Reference: http://positiveinsightsolutions.com/

For more credit help, please visit our site. We have been there and know how bad credit can affect everything, including your health. Take a look!

If you know someone struggling to quit smoking we found a great site that offers genuine  help. You can Quit!!

Here is a great site for some wonderful Christian articles, short stories, plays, family stories, Bible studies etc. Check it out.