Posts Tagged ‘cancellation of debt’

Ask the Tax Resolution Expert: Back Taxes from Discharged Credit Card Debt

Friday, July 10th, 2009

As a tax resolution specialist, I help individuals and businesses resolve their IRS debt and tax problems every day – and I can help you get the help you need to get the IRS off your back!
Got tax questions?  Call our office at 1-866-IRS-PROBLEMS or visit www.taxresolution.com
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QUESTION: We were sent an amended form from the IRS for our 2007 taxes.  An old credit card debt.. they submitted a 1099
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Posted in Ask the Expert | No Comments »

A Couple’s Canceled Credit Card Debt is Forgiven and Recognized as Taxable Income

Tuesday, May 19th, 2009

This is the second tax case I’m blogging about today that relates to taxability of canceled debt.
When a lender cannot collect debt and subsequently cancels the debt (which we are seeing alot of in the form of foreclosures in this struggling economy) -  the IRS considers the canceled debt as taxable income.
The IRS offers guidelines for exceptions or exclusions in which canceled debts are not taxable.
Additionally, the IRS may also
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Posted in Discharging Taxes in Bankruptcy, IRS Tax Cases, Tax Debt Help News, Tax Relief News, Tax news and tips | 1 Comment »

Discharged Credit Card Debt Found Not Excludable from Taxable Income in Recent Tax Case

Tuesday, May 19th, 2009

In this weak economy, taxpayers have lots of questions about cancellation of debt and taxability.
According to the tax code, if a debt for which you are personally liable is canceled or forgiven, other than as a gift or bequest, you may have to include the canceled amount in gross income. While it’s important to know if your canceled debt qualifies for exclusion from your income,  it is also necessary to
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Posted in IRS Tax Cases, Tax Debt Help News, Tax news and tips | 1 Comment »