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 ...

COVID-19: Solvable’s Guide for Taxpayers


by Sonali Patel on March 25, 2020  0 Comment

COVID-19: Solvable’s Guide for Taxpayers
We will be updating this page daily with new information and resources to help you 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 small and large businesses, ...

Survey: Respondents Feel Debt Is Manageable and Able To Be Paid Off


by Joel Anderson, GOBankingRates on March 17, 2020  0 Comment

Survey: Respondents Feel Debt Is Manageable and Able To Be Paid Off
Being in debt usually means many of your payments go toward paying interest and potentially a less than ideal credit score. We’ve all heard statistics that people collectively have $13.2 trillion in debt, as of 2018. Statistics like these make it seem like people have large amounts of debt that they cannot manage or pay off. However, what many might not realize is that debt is far more manageable than it may seem. According to a survey conducted by GOBankingRates, the majority, at 59.16%, of all respondents felt they would be out of debt in five years or less – a reasonable amount of time. Additionally, the same survey reveals that the majority of respondents went into debt due to ...

Are You Experiencing Difficulty Claiming Dependents with the IRS?


by Mitchell Agnew on February 28, 2020  0 Comment

Are You Experiencing Difficulty Claiming Dependents with the IRS?
I recently received a call from a woman who received a letter from the IRS stating that she was not allowed to claim her two boys as dependents. Even worse, the letter she received also stated that she was now responsible for a tax liability amount of over $3,600. She was floored because she couldn’t understand why the IRS would argue this. The boys lived with her, and she had been claiming them since they were born. She had always gotten a refund and this had never been an issue in the past. Frustrated and looking for answers, she stated she called the IRS. After waiting on hold for an hour, she heard a message stating that due to the ...

See How One Self-Employed Worker Settled $39,378 in IRS Tax Debt


by Dawn Allcot on February 27, 2020  0 Comment

See How One Self-Employed Worker Settled $39,378 in IRS Tax Debt
Case study reports are not necessarily representative of typical results that consumers may achieve. Individual results vary based on circumstances. Please read the important disclaimer at the end of this document. Making the right phone call turned Nick’s life and finances around “You’ve gotta help me! “They’re threatening to take my whole paycheck! I’m a truck driver and I can’t afford to pay them all that money right now!” With these words – and one very smart phone call – Nick set himself on a path that would preserve his livelihood and settle his tax debt. It was the evening of March 14, 2014. A night Nick will remember forever. He shut his P.O. box, hands trembling with anger and ...

What Should You Do If the IRS Sends You a Form LT11 – Final Notice of Intent to Levy?


by Dawn Allcot on February 21, 2020  0 Comment

What Should You Do If the IRS Sends You a Form LT11 – Final Notice of Intent to Levy?
An LT11 form is a final warning from the IRS that they can issue a levy against your assets and file a Notice of Federal Tax Lien against your property if you don’t pay your tax debt. Chances are, you’ve received several IRS notices before the LT11 notice lands in your hands. If you cannot pay your delinquent tax debt, do not ignore the notices; contact a tax professional to assist you with tax debt relief. Unpaid tax debt is no joke and it’s not something you want to ignore. If you don’t respond to the IRS by paying your tax bill or calling to negotiate a payment plan when you receive your first tax bills for unpaid taxes, the ...

What Can You Do If You Receive Notice CP523 from the IRS?


by Dawn Allcot on February 19, 2020  0 Comment

What Can You Do If You Receive Notice CP523 from the IRS?
If you miss a payment on your IRS installment agreement, you’ll receive form CP523 – Intent to Levy & Intent to Terminate Your Installment agreement. It’s important to address this notice by making a payment by the deadline printed on the letter, usually within 30 days from when you received the letter. If you can’t make the payment, contact the IRS. You may be able to negotiate to have your installment agreement reinstated to avoid further collections action. The IRS often provides installment agreements or payment plans for taxpayers in arrears. You can pay off your tax debt in manageable monthly payments, based on your income and expenses. But sometimes, financial difficulties arise and you can’t make the monthly payment ...

What Happens If You Receive an IRS CP501 or CP502 Notice?


by Dawn Allcot on February 17, 2020  0 Comment

What Happens If You Receive an IRS CP501 or CP502 Notice?
A CP501 Standard IRS Bill is the first notice of unpaid tax debt. It's essential to pay your bill by the due date listed on the CP501, otherwise your tax debt will continue accruing interest and penalties and you’ll receive a CP502 Balance Due Reminder. If you can’t afford to pay your bill by the due date, contact a tax professional to help you negotiate a viable payment plan with the IRS.   If you have a federal tax bill you have forgotten to pay, you owe taxes that you can’t afford to pay, or you have unpaid federal taxes for any reason, you may receive a CP501 – Standard IRS Bill (1st Notice). The IRS usually sends these bills ...

What Should You Do If You Receive an IRS CP504 Form?


by Dawn Allcot on February 12, 2020  0 Comment

What Should You Do If You Receive an IRS CP504 Form?
The IRS has a specific process if they are trying to collect unpaid tax debt from business owners or individual taxpayers. The CP504 – Intent to Levy State Tax Refund or Other Property should be the fourth notice you receive regarding delinquent taxes. Before you receive a CP504 notice, the IRS will send a: CP501 – IRS Standard Tax Bill (First Notice) CP502 – Balance Due Reminder Notice CP503 – Second Reminder About Unpaid Taxes The IRS delivers all correspondence via registered mail with a signature required. If you somehow missed all these notices, decided to ignore them, or just don’t have the money to pay your tax debt and are now in a panic, don’t worry. Yes, a CP504 ...

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