Has anyone ever had to prove Insolvent to the IRS over canceled debt?
Date: Wed, 12/03/2008 - 16:42
Has anyone ever had to prove Insolvent to the IRS over canceled debt?
Have you and how hard or easy was it if you are in debt more than you are worth?
As far as I know, canceled debts are non-taxable. Source
As far as I know, canceled debts are non-taxable.
Source: - "http://www.taxalmanac.org/index.php/Discussion:Cancellation_of_debt"
I guess if you are insolvent being audited is meaningless unless
I guess if you are insolvent being audited is meaningless unless you are lying? I am buried and have 120,000 in assets and 230,000 in debts so I guess I can be insolvent by 110,000? Thanks for the advice and I will send a description with all my debts and assetts to the IRS. Any other advice or info would be greatly appreciated.
