IRS Bill while in debt w/cancellation of debt recorded

[AMISLANDER]

Wouldn't you know it???? Just when I think I'm ok, BOOM, IRS letter saying that I owe $6,900 or 7,100 with interest in regards to 2004 taxes....

....one of the problems is 7,900 I did not report from MBNA...that thing where you pay 1/2 your balance & they forget your debt...well, they did tack it on as additional income, just like everyone says they do...now I have to pay taxes on a freaking debt that is reported as income...should have never paid the $4k I did...should have just added it to my bk...dumb dumb...

I also took out $15K from a retirement fund inbetween getting a job & paying four years of income tax...another addition to income, but at least it was used....

Now they want the abouve amount by June 7....right...so I called my accountant who will be sending them a letter asking them to cancel the tax owed on the cancellation of debt as my liabilities were more than my assets due to the fact that I eventually filed bk

[Minnymouth]

Good luck, when it rains it pours, sometimes.............. does at my house too.....

[no_it_all]

Did you recieve a 1099-C from MBNA? If you were insolvent to the tune of 7K or so you will owe no taxes..........You should just file an amended return and IRS Form 982.

[SinkingFast]

That's what I hate about the IRS.

It ain't over til they say it's over. And that might not be for YEARS!!

Good Luck, Amis, with the Insolvency quest. I do hope it works for you!!

[copper2]

Speaking of the IRS, has anyone else received ammended changes to taxes filed 3, 4 and 5 years ago, with interest and penalties now attached? In my process fighting this, I am "guilty" until proven innocent. The adjustment is titled "Miscellaneous" in their letter. (????). I spoke to an IRS rep, who told me to request copies of employer reporting or anything else I wanted and that all I have to do is ask. He also said to qualify whom I speak with, as the 800 number on these types of scary letters is routed to a customer service department filled with people who cannot make any decisions. I asked how to speak directly with the department ammending this change to my 2002 tax return, and he said, "You cannot talk to those people, you can only write." His advice was to contact my local Taxpayer Advocate!

[Minnymouth]

contact the advocate and send all your mail certified......"paper trail"