how is the IRS handling the 1099s from people who walk from their homes and dont file bk, on the forgiven amount.... are they working with these people, or playing hard ball?
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"it looks like i picked a bad day to give up sniffing glue"! [McKroskey, airplane] -
Dunno.... but usually hardball. You'd have to try because it is a whole new world out there at the moment.
I don't trust anyone... brokenn
Filed C7 Aug 31 2008
341 Oct 8 2008
Discharged Dec 9 2008
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It's the IRS, what do you think.
They don't handle them any differently than anything else.
If you get a 1099, you need to declare it as income. You need to use IRS From 982 and find out if you qualify for any of the exceptions to actually "paying" the income tax on the forgiven amount or if you qualify for the Mortgage Forgiveness Debt Relief Act. http://www.irs.gov/individuals/artic...179414,00.html
If you have to pay the income tax, then the IRS will treat it no different than any other tax liability. You will have time, the IRS tends not start active collections on Individual Income tax issues (i.e. 1040's) until a year or two after the tax was assessed.Comment
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