Tag Archives: Debt

Personal Responsibility

Today TaxMama hears from lots of people – and all the questions have the same theme. “I overspent and ran up lots of debt and didn’t pay taxes. Now I’m in big trouble. What do I do?”

Tax Consequences of Canceled Debt

To listen to this presentation, please use the link in the Resource Box below. Transcript of presentation: Hello. I’m Jean Wetzler, with a reenactment of a March 2009 IRS National Phone Forum on the “Tax Consequences of Canceled Debt”. The presenter for the phone forum was Anne Freeman, chief of the Individual Review section of […]

Decedent 1099-C

Today TaxMama hears from Thomas in Maryland who tells us. “I was legally separated from my spouse 3 years ago. My spouse passed away 2 years ago. I just received a 1099-C tax statement addressed to her estate. Since I was legally separated, am I obligated to report the 1099-c amount on my taxes?”

Dump Tax Debt

Today TaxMama hears from Bill in Nevada who tells us. “I have a tax lien from year 2000. This was a debt that was awarded to my ex in our divorce. At the time of divorce the debt was around $500. She got it down to less than $200. and stopped paying on it. It […]

Foreclosure

Today TaxMama hears from Sasha in Georgia who tells us. “In 2007, I had a foreclosure on my condo in April. In August I filed for Chapter 7 bankruptcy. I received my discharge in December. This year, I received a form 1099-A from my mortgage company. I’m not sure if I have to declare this […]

Chapter 13 Tax Discharges

Today TaxMama hears from Mark in Arkansas, who wants to know, “I have filed a Bankruptcy Chapter 13 repayment plan. Can I have my taxes dismissed in a “tax bankruptcy” even if they’re already in included my Chapter 13 filing?” Dear Mark, Chapter 13 bankruptcy is like a personal re-organization. You get to reduce some […]

Credit Card Debt

Today TaxMama hears from Ken in the Tax Parlor with this tale of woe. “I received a 1099-C in 2005 and included it on my tax return. The credit card company has since taken me to Arbitration and my defense is that I have already paid taxes on this debt. Is there some publication that […]

Cancelled Debt

Today TaxMama hears from Sean from TaxMama’s Tax Parlor who tells us a very long story. Please read the whole question in the Tax Parlor. But, for short…, “My current situation involves a repossession of a car back in 1994. I received a notice about a year ago from the IRS stating that I owed […]

Early Withdrawal Penalty

Today TaxMama hears from Cathy in Sunland, CA who tells us, “My husband and I are in our early 40’s. We have managed to get ourselves deeply into credit card debt. I have an old profit sharing plan from an ex-employer that I want to cash out and pay off all our debt. It is […]

Parents Die

Today TaxMama hears from Sara in Kirkland, WA who asks, “My parents have a debt to the IRS for back income taxes. They have tried an Offer in Compromise twice and been rejected. The incident is now about 20 years old, and they have given up hope of ever paying it off. I think they […]

Defaulted Student Loan

Today TaxMama hears from Margaret. “My daughter’s boyfriend, with whom she lives, filed his tax return claiming my daughter and their child for the sake of the EIC. He expected to receive approximately $2000 back as a refund. Instead he received a notice from IRS that not only was he not getting his refund, but […]