How to Apply and Get an IRS Installment Agreement


by Joe Valinho on November 24, 2020  0 Comment

How to Apply and Get an IRS Installment Agreement
A large number of taxpayers choose an Installment Agreement payment plan to resolve their back taxes. This IRS plan allows you to pay your back taxes in monthly installments. If you cannot pay your full back taxes in a single lump-sum payment but can pay it back monthly, then an Installment Agreement may be the right plan for you. How Can I Qualify for an Installment Agreement? There are many types of Installment Agreements the IRS offers. These are: Guaranteed Installment Agreement Streamlined Installment Agreement Partial Payment Installment Agreement Non-Streamlined Installment Agreement Each type of Installment Agreement has their own qualifying factors that you need to meet to enter the agreement. Along with these basic requirements, there may be certain ...

How to Choose the Best Tax Relief Services Company


by Arian Azimzadeh on November 20, 2020  0 Comment

How to Choose the Best Tax Relief Services Company
No matter whether you need standard tax preparation services or you’re looking to settle substantial tax debt, finding a reputable service provider is crucial. When it comes to tax relief services, there’s an entire range of options based on how much you owe, how long you’ve owed money to the IRS, and what penalties you’re facing as a result of back taxes. In this post, we’ll shed light on what makes a good tax relief services company and how to know whether you’re working with a trustworthy and professional source. You’ll also discover which characteristics to stay away from, so that you can avoid using tax relief service providers that might inevitably end up wasting your time or money. What ...

What is the Difference Between a Tax Lien and a Tax Levy?


by Arian Azimzadeh on November 05, 2020  0 Comment

What is the Difference Between a Tax Lien and a Tax Levy?
It’s the responsibility of every taxpayer to fully understand personal tax liability and to pay what they owe to the Internal Revenue Services (IRS) in a timely manner. Failure to do so may result in significant penalties, fines, and other tax hardships. In this article, we’ll discuss the issue of lien versus levy, and show how these two unique tax penalties affect average citizens. After reading this guide, you’ll understand the main differences between liens and levies issued by the IRS. You’ll also be able to recognize the situations that warrant these penalties and foresee how to avoid them. What is a Lien? Legally speaking, a lien is any public record (filed officially with a local government office or clerk) ...

How To Remove An IRS Bank Levy


by Joe Valinho on November 05, 2020  0 Comment

How To Remove An IRS Bank Levy
"Help! My bank froze my account!" Usually, when we get a call at our office, the person on the line is in panic. Our typical response is to tell them not to worry. But in the case of a bank levy, we entirely understand the alarm. We understand how absolutely devastating a bank levy can be to financial stability and your mental health. So the first question we ask without wasting any time is: "When was the levy placed?" It is crucial to know the day the IRS placed the levy because, from that date, you have 21 days until your bank account will remain frozen. After the 21-day period is over, the IRS can remove those funds from your ...

5 Types of IRS Payment Plans and How to Choose One


by Arian Azimzadeh on October 01, 2020  0 Comment

If you can’t afford to pay your owed income tax amount, you might be feeling overwhelmed by the thought of fines and penalties. Fortunately, working with the Internal Revenue Service (IRS) to resolve your outstanding debts doesn’t have to be daunting or stressful. In this post, we’ll share some of the most popular IRS payment plans and how they can provide practical solutions for conquering your upcoming tax payments. What is an IRS Payment Plan? An IRS payment plan is similar to other types of payment plans that allow you to pay off an existing balance or outstanding debt over time, as opposed to paying a lump sum immediately. Payment plans are useful when you are short on cash assets ...

Solvable COVID-19 Study: How Effective Was Federal Aid During Coronavirus?


by Sonali Patel on September 09, 2020  0 Comment

Solvable COVID-19 Study: How Effective Was Federal Aid During Coronavirus?
Solvable, in collaboration with GOBankingRates, surveyed 1,229 Americans on their experience receiving government aid during COVID-19. The survey was broken down by employment type, and the makeup of responses is representative of the U.S. population, with responses from small business owners (14%), freelancers (10%), W-2 workers (65%) and retirees (11%). The results of the Solvable COVID-19 Study show that federal aid funds significantly helped people during the crisis. In fact, 83% of small business owners felt that federal funding was necessary to help them get through this time. More highlights from the study: Seventy-two percent of small businesses applied for help and of that, 77% received the requested funding. Fifty-four percent of freelancers applied for federal programs and of that, ...

What Profession Owes the Most Back Taxes?


by Sonali Patel on August 17, 2020  0 Comment

What Profession Owes the Most Back Taxes?
While U.S. credit card debt and student loans tend to garner publicity, tax debt continues to be a massive problem that is overlooked. Although the Internal Revenue Service (IRS) collects more than $3 trillion annually in taxes, penalties, interest and fees, approximately 16.4% of all federal taxes owed go unpaid. That may not sound like a high percentage. But it equates to $441 billion in lost revenue for the IRS. The IRS calls this the “average gross tax gap.” Factoring in late payments and successful collection efforts, the net tax gap, or total tax debt owed, drops to $381 billion. So, who owes all these taxes? Our latest State by State Tax Debt Industry Report reveals some eye-opening truths. Taxpayers ...

Solvable’s Debt-Free Scholarship


by Sonali Patel on July 27, 2020  0 Comment

In 2019, Solvable launched the Solvable Debt-Free Scholarship, to help the next generation of taxpayers start their journey of financial independence and freedom. To apply, students had to write an essay about what personal financial freedom meant to them, and received over 450 applications from students all over the country! Our team of essay readers were blown away by the  Some wrote about budgeting, some about investing and some about how their financial struggles growing up have led them to prioritize and pursue financial independence. After a lot of contemplation, one entry stood out as exemplifying the values of Solvable - taking charge of your financial situation and helping others to do the same. The winner of the 2019 Scholarship ...

What is IRS Form 8949?


by Sonali Patel on April 08, 2020  0 Comment

What is IRS Form 8949?
IRS Form 8949 is used to report capital gains and losses. This form is for use by individuals, corporations, partnerships. Form 8949 is used in conjunction with Schedule D on 1040 forms. If you purchased or sold any assets with capital value (think stocks, businesses, artwork, property etc.) you must report these transactions to the IRS on your federal tax return via IRS Form 8949 - Sales and Other Dispositions of Capital Assets. Use this form to report both short-term and long-term transactions. Separate your capital gains and losses according to how long you held or owned the property. The holding period for short-term gains or losses is usually 1 year or less. Short-term holdings are reported on Part 1 ...

COVID-19: Solvable’s Guide for Business Owners & Independent Contractors


by Sonali Patel on March 25, 2020  0 Comment

COVID-19: Solvable’s Guide for Business Owners & Independent Contractors
We will be updating this page weekly with new information and resources to help freelancers & business owners get through this time. Check back for more information or reach out to us if you have a specific question.   You Can Get Support in Time of COVID-19 Nearly everyone is facing some sort of hardship during the COVID-19 pandemic. Those on the front lines, such as healthcare workers, may be quarantined from their families to avoid transmitting the virus. Small businesses have closed. Independent contractors have lost anchor clients. Entire industries have shut down. The government has stepped in with a financial aid package, the Coronavirus Aid, Relief and Economic Security (CARES) Act. The $2 trillion package is designed to help ...