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jgordosea
jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3004
Experience:  I've prepared all types of taxes since 1987.
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ll

Resolved Question:

ll
Submitted: 11 months ago.
Category: Tax
Expert:  jgordosea replied 11 months ago.

Greetings,

 

It seems that gain may be correct since 202,000 minus 24,000 is 178,000 so this is the gain from turning over the property for cancellation of the debt. Obviously I do not have all of the facts to know if there are other items to consider.

 

Not sure what you are asking when you say "What should I do when I file this return?"

The return should be timely and as much as possible should be paid with the return.

If full payment can not be made with the return then an installment agreement can be requested for the balance due.

 

Presumably the IRS will do the same thing as is done with all returns or with all tax due and if not paid will take action for collection of the tax due. There will be similar considerations in regard to the state income tax return, as well as for the IRS.

 

Please ask if you need more information or discussion.

Thank you.

 

 

Customer: replied 11 months ago.


This C corp. has -0- assets! Only thing on the balance sheet is common stock and negative retained earnings. And the Corp. has no means of getting any future income either. So no cash/assets means there is nothing for the IRS to get or to go after!


Should I just call the IRS and explain the situation?


You can't squeeze blood from a turnip, right?

Expert:  jgordosea replied 11 months ago.

Hello again,

 

You should file the return first before you talk to the IRS about installment payment plans or being placed in a status called "currently not collectible",

 

Only after a return is filed, the tax is assessed and there is a balance due on the account can the IRS do anything in regard to showing that there are no assets to collect. Without those prior steps there is nothing (yet) to talk about with the IRS.

 

Hope this helps to clarify for you.

Customer: replied 11 months ago.


Last question: should I file the return and then contact them?


Or wait till they contact me?

Expert:  jgordosea replied 11 months ago.

Hello again,

 

When you file the return and do not pay a notice will be sent to ask for payment.

That notice will have contact information that you can use at that time.

 

It is probably best to wait for that contact since that person will be able to address the situation; but you certainly can (and there is no harm) choose to contact them sooner (but that person may or may not be able to do anything to the account).

 

Best wishes.

 

jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3004
Experience: I've prepared all types of taxes since 1987.
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