Discussion:2006 Cancelation of Debt - Still able to send letter to IRS?
From TaxAlmanac
| Revision as of 04:14, 1 May 2009 Lalva (Talk | contribs) (Thank you so muc) ← Previous diff |
Revision as of 04:19, 1 May 2009 Lalva (Talk | contribs) Next diff → |
||
| Line 19: | Line 19: | ||
| {{ForumReplyPost|UserID=Riley2|Date=1 May 2009|Text=The insolvency exception is automatic. No election is necessary. It is not too late to file a Form 982.}} | {{ForumReplyPost|UserID=Riley2|Date=1 May 2009|Text=The insolvency exception is automatic. No election is necessary. It is not too late to file a Form 982.}} | ||
| - | {{ForumReplyPost|UserID=Lalva|Date=1 May 2009|Text=Thank you so much for your help!}} | + | {{ForumReplyPost|UserID=Lalva|Date=1 May 2009|Text=Thank you so much for your help. |
| + | |||
| + | And one last question: What do I do with the Notice of Deficiency? Do I send the amended return with the form 982 AND a copy of the Notice of Deficiency? | ||
| + | |||
| + | Thank you again!}} | ||
Revision as of 04:19, 1 May 2009
Discussion Forum Index --> Advanced Tax Questions --> 2006 Cancelation of Debt - Still able to send letter to IRS?
Discussion Forum Index --> Tax Questions --> 2006 Cancelation of Debt - Still able to send letter to IRS?
| 30 April 2009 | |
| First of all, I am reading the numerous questions about this in this forum, so please Kevin, don't point me to the yellow box :-)
Facts: clients had c.card debt canceled in 2006 for $15,000. They filed the 06 return without including the income from form 1099-C. For various reasons they didn't address the issue until now. I think that they might have been insolvent at the time. I think now it's too late to file form 982, since the instructions say: "If you timely filed your tax return without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return." After reading the posts here I think that they could send a letter to the IRS with the insolvency information, but they received a Notice of Deficiency in late February, and it shows the last date to petition tax court (May 18, 2009). Is it too late to send that letter to the IRS? Is Tax Court the only option now? They owe $2,800 in back taxes, so hiring an attorney, CPA or EA to represent them in court doesn't make much sense at this point. Thank you so much in advance, your guidance is greatly appreciated! | |
RoyDaleOne (talk|edits) said: | 30 April 2009 |
| I do not believe that the instruction you refer to, if contained in the "When To File" section of the instruction to Form 982, applies to the factual situation as stated. Therefore, complete the Form and sent it to the IRS. | |
| 30 April 2009 | |
| I forgot to mention that he received the 1099-C in 2007 before filing their 2006 tax return. Does that change anything?
Do I amend the 2006 tax return including the form 982? Thank you for your help. | |
| 1 May 2009 | |
| The insolvency exception is automatic. No election is necessary. It is not too late to file a Form 982. | |
| 1 May 2009 | |
| Thank you so much for your help.
And one last question: What do I do with the Notice of Deficiency? Do I send the amended return with the form 982 AND a copy of the Notice of Deficiency? Thank you again! | |
