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Why Did the IRS Pay $20 Million to Collect $6.7 Million in Tax Debt?


by Staff Writer on December 05, 2018  0 Comment

Why Did the IRS Pay $20 Million to Collect $6.7 Million in Tax Debt?
One of the primary goals of the Internal Revenue Service (IRS) is to collect all of the tax revenue owed to the agency. Because the agency only has so many resources to dedicate to tax collection, it employs private debt collectors to help with this task.   While using private debt collectors has many proponents, the practice may not actually be as cost effective as once imagined, as the IRS recently paid $20 million to collect $6.7 million in back taxes. Here are a few facts about the government's use of private debt collectors and advice that can help you deal with back taxes.  More Money Than It's Worth The IRS has long struggled to collect all the taxes it is ...

Everything You Need to Know If You Owe Taxes to New York State


by Staff Writer on December 05, 2018  0 Comment

Everything You Need to Know If You Owe Taxes to New York State
If you live in New York State and you owe taxes to the Department of Taxation and Finance, it can be confusing to know how to resolve the problem of tax debt. Which is why we at Solvable are here to help: we're going to break down everything you need to know about tax debt in New York State. Conveniently for you, New York State's taxation department is known as being one of the most efficient at finding resolutions in the whole of the U.S. First, Work Out How Much You Owe Often those in tax debt owe taxes at the state and federal levels. Every state taxation department is separate from the IRS, and each has their own rules ...

Understanding the Collections Process for California State Tax Debt


by Staff Writer on December 05, 2018  0 Comment

Understanding the Collections Process for California State Tax Debt
State taxes in California are administered by the California Franchise Tax Board (FTB). When you file your annual tax return, you may owe state taxes if you live and/or work in California. You could also receive a refund. If you cannot afford to pay the California taxes you owe, the FTB will make attempts to collect the debt. You may also be able to set up a payment plan. Understanding Your Tax Bill When you receive a state tax bill, it means you owe taxes you haven't paid. Some common reasons for receiving a California tax bill include: You sent a payment but didn't include the necessary information for it to be processed. This includes your name, Social Security number, a ...

Living Internationally: File Your Taxes Correctly


by Staff Writer on December 05, 2018  0 Comment

Living Internationally: File Your Taxes Correctly
If you're an American living in another country, tax time can be challenging. Whether you're new to living abroad or have been an expatriate for several years, here's what you need to know about staying in good graces with the IRS when you don't reside in the U.S. Paying Income Tax as an Expat As a U.S. citizen, you must pay income tax no matter where you live. This means if you earn money in another country, you have to file an income tax return and pay the outstanding balance just as you would otherwise. Your tax return must be filed with calculations in dollars even if you are paid in foreign currency. However, you do receive a two-month extension ...

What Is Tax Forgiveness?


by Staff Writer on December 05, 2018  0 Comment

What Is Tax Forgiveness?
Many people find themselves in debt to the IRS and owing back taxes on income. In consideration for those unable to pay back taxes, and knowing that they couldn't possibly recover all those debts, the IRS developed a tax forgiveness program that includes several programs to suit individual needs. From payment arrangements to debt settlement, you may be eligible for one of the many IRS debt forgiveness programs that can help you lower your financial burden and get your IRS debt paid off faster so that you can begin moving forward. If you have incurred substantial tax debt and don't know how to pay back what you owe, one of the IRS debt forgiveness programs could help you solve your ...

Tax Repayment Help: Understanding the Available Options


by Staff Writer on December 05, 2018  0 Comment

Tax Repayment Help: Understanding the Available Options
If you're unable to pay your taxes, you aren't alone. More than 10 million Americans faced late payment penalties annually according to data from the IRS reported by Nerd Wallet. Fortunately, tax repayment help is available, ranging from plans that allow you to pay your past-due taxes overtime to tax relief through bankruptcy. Here's what you need to know if you're facing IRS debts you can't afford. File Your Tax Return If you expect to owe the IRS, you might put off filing your tax return, but this strategy is much more costly in the long term. The monthly penalty for unpaid taxes is 0.5 percent of your balance, compared to 5 percent of your balance monthly if you fail ...

IRS Personal Taxes


by Staff Writer on December 05, 2018  0 Comment

IRS Personal Taxes
Owing taxes to the IRS is a serious matter that must be resolved as soon as possible to avoid unpleasant consequences and unnecessary stress. Once you've realized that you owe a hefty tax bill, you must be proactive about the situation, especially if you find yourself unable to pay in full right away. Whether you are short on money due to an emergency or some significant life event, you need to know what to do next and what mistakes to avoid. Costly Mistakes — What Not to Do Before we go into details about what to do if you owe taxes, let's look at some common mistakes taxpayers make. Not Filing Your Return Many taxpayers tend not to file a ...

How to Get Extension on Taxes


by Staff Writer on December 02, 2018  0 Comment

How to Get Extension on Taxes
Sometimes life happens to all of us and things could get in the way of our most sincere intentions. You might find yourself unable to submit your tax return on time because you are simply behind on your to-do list. Or, you might already be in debt and delay filing your return because you can't pay your next tax bill. Whatever the reason, you have a better option than not filing the return.  If you are not ready to file your tax return on April 15, you can apply for an extension, and the sooner you do it, the better the outcome. The application process is quick and easy. It will buy you some time and help you avoid various penalties ...

Living Overseas? What Expats Need To Know About IRS Debt


by Staff Writer on December 02, 2018  0 Comment

Living Overseas? What Expats Need To Know About IRS Debt
According to data reported in the Washington Post, about 8.7 million Americans currently live overseas. If you're already among their numbers or you're considering becoming an expatriate, you will have tax considerations when you move to another country. This is especially true if you plan to work while you're there. If you have debt with the IRS, your situation becomes even more complex. Expats and future expats who have tax debt should heed this information to avoid steep fees and penalties.   Rules for International Income You must file an income tax return if you earned money during the tax year through wages, dividends, interest, rental income, and/or all other U.S. and non-U.S. sources. Self-employed individuals must file when they earn more ...

How Veteran Status Affects Your Tax Debt


by Staff Writer on December 02, 2018  0 Comment

How Veteran Status Affects Your Tax Debt
If you are a veteran and you owe taxes you cannot afford to pay, you may be eligible for IRS relief programs. Veterans also receive special consideration in certain other tax matters. The IRS defines a veteran as an individual who has served at least 24 consecutive months in active duty and has not received a dishonorable discharge. This includes full-time members of the Army, Navy, Marines, Air Force, and Coast Guard as well as commissioned officers of certain federal agencies. Spouses, children, and parents of deceased and disabled veterans also qualify.  Tax-Exempt Disability Benefits Your taxable gross income does not include your VA disability benefits. This includes:  Pension and disability compensation payments, including those paid to your family.  Grants ...

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