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Last time on...You've withdrawn money from an investment account such as a 401k, or an IRA. You were under the misconception that taxes are taken out when you withdraw, but now the IRS has dropped a huge tax debt in your lap.

What have you done? You took out $100,000 for a new boat and vacation, unaware that the IRS expected you to pay them to the tune of 30% or $30,000. Now an IRS-Hitman has shown up at your door wanting that money, or something else of equal value.

What can you do? You don't have enough money in your investments any more. You could borrow against your home, or sell that boat you bought yourself. Because you spent the money on what the IRS considers "frivolous" spending you are expected to pay back the full amount.

A second case study...You've lost your job because you had to go into the hospital. You're behind on all of your bills and the only way you could pay them off was to take out your 401k. You had to spend the full $100,000 to keep your house out of foreclosure, and your lights on. The IRS still comes at you with a debt of $30,000. But because you're broke, and don't have enough assets to pay the debt you may be eligible for an to settle your debt for pennies on the dollar.

To settle that $30,000 debt for $5,000 you have to give a < target="_new"a href="http://ezinearticles.com/?IRS-Tax-Debt-and-Financial-Disclosure---Do-You-Like-Ramen-Noodles?&id=929501">full financial disclosure, and prove that you used the funds from your 401k to pay for basic living necessities. If you want to fight the IRS you have to prove your innocence. That means save every receipt and bank statement.

Keep your head...Remember your Uncle Sam always expects you to pay him his due. Expect to pay 30% in taxes, and don't let that money burn a hole in your pocket. It took you a very long time to earn it. Don't let a simple mistake put you in the poor house.

Now you have the smoking gun...Use it!

I'm Richard Close and I was a "Hit-Man" for the IRS. I took out anyone who owed the IRS money as my father had before me. Now I help thousands of Americans beat Uncle Sam and save thousands of dollars. Tax problems? Contact me and get free tips and techniques to deal with wage and bank seizures and slash tax debt: email me at IRS-Hitman@taxdefensenetwork.com or call 1-888-248-9058. Visit me http://irs-hitman.blogspot.com or http://www.taxdefensenetwork.com

Source: www.a1articles.com