crzywizdom

Thank you for your help. 1) can you link me to an example of a good letter? 2) What kind of info do you have to provide if you are self employed? 3) and examples of what to put in and what to leave out? thanks!

Perfect storm going on. Heart attack. no income now. made 37k this year. GF having major surgery. my brain is swiss cheese. thank you.

thank you for all your help. I couldn't get that link to work. will you post it again please?

CLARIFICATION; These are the exact figures. 60K cc and other liabilities. 30K in CC 1099c all from OC. 10K in assets. May 1st 1099c = 9K, May 2nd 1099c = 13K, May 3rd - 8K, / liabilities on 4/29 including all CC = 60K. 10K assets. do I have to do 3 different insolvency sheets? I just can't quite wrap my head around how to do this right.

For instance on question #1. Is this how I determine the figures correctly? To exclude the forgiven debt from gross income, you must have been insolvent at the time EACH debt was forgiven? So, you must first show you are insolvent on the date of identifiable event shown on the 1099c with the earliest date. Then, go to the next 1099c and show that you were insolvent on that date, without including the first discharged debt as a liability because you no longer owed the first debt at the time the second debt was forgiven. Then, move on to the 3rd one. Is this the right way to do that?

3 very specific questions about 1099 c, insolvency, and form 982 please Sorry, this may be a little jumbled, I have been in the hospital…..and I am writing this from there. Questions 1) If you have 3 separate 1099-cs all from the same OC all on a dif date but just (1 day apart from each other ex may 1,2,3rd ) and from the same OC. What is the date that you use to show your insolvency? as the date immediatly prior to discharge. The day before the first 1099c? Which is May 1st? i.e.? April 29th? 2) I paid the sales tax in full with my state extension. does the Federal 1099 cs, and the 982 that is all Fed affect the state tax if at all? is there anything I have to send them? 3) On form 982 and 1040, do I fill int total liabilties? or total of only the 1099 cs ? ASSETS 4) How do i determine the Value in the assets liabilities worksheet of old stuff? A) 200 books but they are highlighted so they cant be sold? so what are they worthless? Old equip 5-10 years old computer. c) Furnishing - old tvs, old microwaves, couch, coffee table, table all at least 5-10 years old. Thank you so much, I really appreciate this. it was all i could do to just write the questions.

It was not for 2 years. but the last two years. I think its the CURRENT year on installment but that can contain other years that you added to it. . I am going to have to call and try to get them to do this years as well, I hope they will.

Thank you so much for the info I appreciate it. Thanks for your patience, and my questions, but I am trying to get this right. and to wrap my head around this, If i have multiple form 1099-cs, from the same OC, say on 4/10, 4/11, and 4/12 2013, I can't just declare my insolvency date on 4/9/13 and include all 3?

how do you determine what the amount of insolvency is to claim? For instance is if the date on the 1099 c's are 4/1/13 that means I have to claim insolvency the day before that (3/31013) correct? Does that just mean my bank accounts? I mean How do I determine what that was from a whole year ago? Thx!

Thanks. Will filing an extension, jeopardize my 28K in 2013 1099 -c from the OC that i plan to file insolvancy to not pay the tax on for 2013? Thanks!

Wow, I want to thank you so much for all your good info. I was delayed from answering by medical issues. If I can't pay my taxes by April 15th, and I have an IRS payment plan already. What is the difference between the penalty and interest if i file an extension that gives me till oct. Vs filing april 15th but not paying? 1) If I cant pay the new taxes anyway. 2) Which will default my current IRS payment plan 3) If I file and extension and meet with my CPA after April 15th. question: is there any other XTRA penalties or interest added because i filed an extension, if so how much more ? trying to see any downside to not doing it by the 15th even though i don't have the money for the taxes. Thanks for the clarification.

Taxes, 1099-C's, and IRS payment Plan: Does the following strategy make sense? I am in a bit of a pickle when it comes to taxes this year. and having trouble figuring out what is the smart thing to do. Questions: 1) Is it smarter to file in April or file for an Oct. extension given my current situation? 2) Does the below strategy make sense? Have I forgotten anything? 3) How does this situation affect my state taxes? 4) Are all the documents listed that I would need to bring to A tax meeting ? Have I forgotten anything? __________________________________________________ ____________ CURRENT SITUATION: 1) I have an IRS payment plan for the last two years. Currently it is at $45 a month. for 2011 and 2012 for a total of $6,500 2) I have had a bad last few months and I will not have the April 15th amounts due the IRS, or even possibly the state for this year either. 2013. est: 3-5K 3) I received three 1099C's debt forgiveness (code G) this year (2013). If I do not declare insolvency I will owe tax on these. I qualify for Insolvency. 4) I dont know if it is smarter to do all of this in april, or file and extension and do it in October. __________________________________________________ ___________________________ THE SCENARIO THAT SEEMS TO MAKE SENSE: 1) Fill out form 982 attach to 1040 and declare insolvency to not pay taxes on the 1099-C's 2) Do taxes and send to IRS and state without payment. 3) Call IRS and state and make a new payment plan. 4) The other option is to file an extension for October and hope I can come up with more tax money by then and keep paying $45/m. __________________________________________________ _______________________________ INSOLVENCY 1) My three 1099-Cs show a cancellation date of 2013 with a code G 2) Use the insolvency worksheet included in the 4681 Publication 3) Download IRS Form 982. I will need one for each 1099-C. 4) . The cancelled amount indicated on your 1099C Box 2 enter on line 21 of your 1040 enter 'Cancellaton of Debt' for 'type' 5) . Check box 1b on form 982 (pay no attention to the 'not in a title 11 case') enter the amount from 1099C Box 2 on line 2 of your 982. You need to file a 982 for each 1099C but only enter the total from all on Line 21 1040. IRS needs seperate 982's to match up the totals from their copies of the 1099Cs. 6) . Attach all 982's to your 2013 federal tax return 7. Keep the worksheet from Publication 4681 - if you are audited your will need documentation of how your arrived at insolvency 8) . Keep the copies and the original 1099C, you don't need to attach the 1099C to your return just have it on hand http://www.irs.gov/Forms-&-Pubs __________________________________________________ __________________________________________________ ________________________________________ LIST OF THINGS TO BRING TO TAX MEETING: TAX DATA: Sole proprietor 2 Main bank accounts. 1 biz, 1 personal HSA - that was not withdrawn from. no property. car - no payments. rent Have payment plan with IRS for 2011 & 2012 GATHERED INFO THAT IS READY TO BRING TO ACCOUNTANT MEETING: 1) biz Account personal Account ING HSA IRS PAYMENT PLANS TRANSCRIPTS FROM PAST YEAR.\ Year end tax data from bank 2) QUICKEN FILES RECONCILED: ACCOUNTS: BUSINESS ACCOUNT 1) QIF file. 2) register printed out for year 4) itemized report 5) catagories report 6) profit and loss report PERSONAL ACCOUNT Qif file 1) register printed out for year 2) itemized report 3) catagories report INSOLVENCY SHEETS: 1099-cs 1040 982's Worksheet showing insolvency

thank you, do you have any sample sheets you used to do your inventory that would be helpful as a template? also if i don't have the taxes to pay on april 15th and i already have a payment plan, should I wait until oct to file insolvency?

Thank you so much, one more questions: 1) Can I still file a tax extension and have until october to declare insolvency and my 1099-C;s, without it hurting my insolvency filing in any way?

then it seems I am doing it correctly. I thank you for all the answers, especially those sans moralizing. does any one have a worksheet that have used for liabilities and assets to demonstrate insolvency?