IRS Tax Debt: How to Turn Hardship into Hope

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Author: Richard Close The IRS Hitman

Article source: http://www.articledeshboard.com/. Used with author's permission.

IRS-Hitman strikes again! Giving you real solutions to IRS tax problems-today!

Wheelchairs and bedpans…Everyday millions of Americans have to be hospitalized. They are unable to make a living, and hospital bills can be crushing even if you have insurance. But I am the IRS-Hitman so this isn't about insurance; it's about tax debt that can occur from your hospitalization.

Even with insurance…It's likely that you've had to make an early withdrawal from a 401k, or retirement fund to pay off the medical bills. You were under the impression that taxes were taken out automatically when you withdrew the money.

Just when you thought it was safe…Now you're out of the hospital, you've paid them off…and you receive a letter from the IRS. The taxes you thought had been taken out of your 401k withdrawal weren't taken out. And now you have a substantial IRS tax debt, plus you are probably behind on other bills because of your time in the hospital. What can you do?

FYI…You should know that taxes are usually not automatically taken out of a 401k or retirement fund withdrawal. In fact you should expect the IRS to come and collect about 30% of your total withdrawal. But you had to pay your medical bills, and now that the IRS wants their money, you don't have it.

A plan…The IRS-Hitman has a couple of tips for you that can get your tax debt reduced; after all you don't need to go back to the hospital.

Catastrophe relief… Being hospitalized with a life threatening condition is considered a catastrophic event beyond your control. Under those circumstances you are eligible for a Penalty Abatement. This is where the IRS removes the penalties that have accrued on your debt because the debt was caused by events outside of your ability to handle. This can reduce your total tax debt by up to 30%

We have a cure…Another tip is that you can claim medical expenses as deductions on your tax return. If you were in the hospital long enough that you needed to take money out of a 401k, you probably have a substantial amount of medical bills that you can claim as deductions. There is a formula that you have to follow governing the amount you can claim: You can deduct only the amount of medical expenses that is more than 7.5% of your adjusted gross income. What does that mean? Well for example, let's say your gross adjusted income is $40,000. You multiply that by .075 which comes to $3,000. Then you can only claim expenses that are over $3,000. You can use those deductions to further reduce your IRS tax debt.

Even the IRS can be sympathetic; they just hide it behind red tape.

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 offers free advice and tips on removing wage garnishments and bank levies; and arms you with the skills to slash your tax debt: Visit at: irs-hitman.blogspot.com or www.taxdefensenetwork.com, or contact: email irs-hitman@taxdefensenetwork.com or 1-888-248-9058.