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IRS Troubles - What should I do to claim insolvency?

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    IRS Troubles - What should I do to claim insolvency?

    It has been a long time since I have been in this forum.

    The IRS has delivered me a tax bill for a debt forgiven about 4 months before I filed for ch7. At that time I did not expect to declare bk --- my situation had completely deteriorated over that period.

    Anyways, since I was clearly insolvent at that time, I intend to write the IRS that since I owed more debts than all of my assets plus the debt discharged, I was insolvent and do not owe that tax.

    What should I do? will sending my ch7 filings (not the whole thing, just the page showing all of my assets and my debts) and my discharge papers be proof enough for my insolvency? Or should I need more papers?

    #2
    Here's a link that might help you:

    http://www.nolo.com/article.cfm/Obje...3/208/212/ART/

    If you were insolvent at the time the debt was settled or canceled, fill out IRS Form 982.

    HTH!
    Filed Ch 7 - 09/06
    Discharged - 12/2006
    Officially Declared No Asset - 03/2007
    Closed - 04/2007

    I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

    Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

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