Ask Experts Questions for FREE Help !
Ask
    Bmrayce's Avatar
    Bmrayce Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 20, 2008, 09:02 AM
    What documentation is required to prove insolvency to the IRS
    Some youg friends received a 1099-C for cancellation of credit card debt that was done in order to avoid filing for bankruptcy. In completing their tax returns, how does one document that they were insolvent?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 6, 2008, 01:15 PM
    You will need to submit a net worth statement showing all of your debts, your assets and your income.

    If the statement reflects a negative net worth, with little prospect of improvement in the near future, then the IRS will waive the taxes owed.

    You need to get professional tax help to do this.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How can I prove insolvency to the IRS? [ 3 Answers ]

I received a 1099c for the short sale of my home. I did not have many assets at the time of the sale, now I need to now how I can prove this to the IRS. I do not want to have to claim over $100,000 as income on my tax return. Can anyone please help me. Thank you.

GAL and Documentation [ 1 Answers ]

We have a GAL. For many, many years, I was always told to document, document, document, well I document, document, document like it is going out of style. Seriously, I have almost made this a part time job doing all this documenting. I am documenting all the occurrences my ex does with my kids,...

Portuguese documentation [ 1 Answers ]

Hi... my name is Abida,I currently stay in zimbabwe,my father was Portuguese Goan. I would like to rec laim my fathers citizenship for myself and family. I have lost my fathers birth cirtificate and all documentation relating to this. Could you please assist me in obtainig these documents in...

1099C and Insolvency [ 5 Answers ]

I am going to be getting a 1099c on a home I could not afford the mortgage on in another state from where I live now. I had to move when my job moved and I could not afford both houses. I tried paying for both for about three years while having the home on the market to sell, but it wouldn't sell....

View more questions Search