I recently learned from the IRS that I must file a tax return for year 2005 because form 1099-A was filed in my name. I went and got a transcript from IRS records and I see where the 1099-A says the fair market value of my home was $12,000.00; BUT THE TRUTH is that my home was recorded as being sold at auction for a bid of $120,000.00. Secondly, the 1099-A says I am still responsible for a debt amount of $86,000. AND THE identity of the company which is listed as having "acquisitioned" my home IS NOT THE SAME entity named on the auction deed. Thirdly, contrary to the May 2005 acquistion date listed on the 1099-A, I DID NOT abandon my home, but I was evicted in August 2005.. It is out the question getting the originator of the phony 1099-A to correct it because the fraud was intentional -which is why they never sent me a copy of the 1099-A they filed. Moreover, HOW CAN THE 1099-A BE CORECT IN REPORTING I STILL AM RESPONSIBLE FOR ANY AMOUNT IF MY HOME STATE LAWS deemed the foreclosure was WITHOUT BENEFIT OF APPRAISAL! In other words, don't foreclosures WITHOUT APPRAISAL mean that the debt MUST become cancelled SINCE "DEFICIENCY" JUDGMENTS cannot be granted for non-appraisal foreclosures? Should the 1099 have been a 1099-C?

You need to challenge the veracity of the Form 1099-A with the IRS. Contact them to discuss the issue in detail, bringing your paperwork with you.

If the IRS representatives will not help you, contact the Tax Advocate to help in your case.

QUESTION: I have a 1099A for a home that was secured through a primary res. Loan. Box five is marked as borrower personally liable for debt. The FMV is listed higher than the principal bal. Will I owe taxes on anything. There is a $27000.+negative if I am doing the math correctly.

Since the FMV is greater than the loan principal, you do not owe taxes on anything here. The 1099-A is just for information purposes. If the FMV was LESS than the loan principal, the lender would have sent a 1099-C form.