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What you need to do is simply file an amended return and add the amounts and make the 982 changes
If you used turbotax, its really easy, you just bchoose 1040X as the return you're oing
It will ask you for the changes and there will be a box for explainging the changes
but i already file a 982 for 1500, can i change it to 11500.00 correct? there in turbo tax
Yep ... just explain in the "reason for change" box that you did not know that the companies had forgive the debt until you received the additional 1099s
every change you make on the 1040X (the amended return) there will be a box for making the explanation ... you won't have to completely re-do the taxes
i did not received the 1099 c , i received a letter from the irs asking for the taxes of those 10000
Sounds like you must have missed to 1099s somehow... IRS gets a copy of what tey send you ... that's the nly way they know it;s there
IN this case just be truthful... you did not know the companies had actually forgiven the debt until you received the IRS notice
very possible a move a lot in the last 3 years
must me lost in the mail.
you could even say that .. "It's possible that I missed the 1099s as I have moved... Did not know that this was actually forgiven debt until I received your notice"
yes very possible they have my old address those debts have more than 3 years
again, we're just talking about what you put in the "reason for change box that will come up for any line item that you make a change to
You'll be fine ... thank goodness they extended this through 2014 ... DO take advantage of it ow.
"now... this year"
what they extended?
sorry what they extended?
yes, it was slated to end in 2012, but the last tax act (the "fiscal cliff"deal) extended this
extended what sorry?
the waiver of taxation on forgiven debt
IRS consider's forgiven debt as income ... always has
they will remove it for credit cards also? in the future?
it was only through the debt forgiveness act of 2007 that they started waiving the tax on this money that was borrowed but never paid back
we do not know if it will e extended again
ok finally the calculation i made is correct for the insolvency right?
my property in foreclosure have marked value of 70000 and my debt for that property is 200000
yes, insolvency is simply the fair market value of assets minus value of debts (will be a negative numbner if you're insolvent
so for that i have insolvency of 130000
Must be ALL assets, although the house is probably your biggest piece of the pie
i dont have any other valuable assets
thats it then
never will reach 130000
no 401(K) PlN, ETC?
not even selling my teths
you're find .. the important part here is getting it dont this year
can i ignore the letter then?
after a file the 1040X?
with the fix of the 982
NO, I would not ignore... I would do the amended return then respond that you have amended the return to indicate the additional debt and changed 8982
Someimes the right arm at IRS doesn't always know what the left arm is doing... the folks that process that amended return are not the collection folks that sent you the nletter
I'd respond by letter to the address on the notice AFTER you know you've gotten the amended return in
You'll e fine... you have a legitimate reason.. just don't let it go .. In my experience, you'll always do better by getting to them first
If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.
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sorry what do you mean with you'll always do better by getting to them first
I mean people that don't respond to their notices end up getting into more issue (failure to respond, etc) ... If you take action before they have a chance to send you that second notice, you'll be fine
have a good rest of the evening
ok when is the rating
i need to close the chat right?
I think you rate first, then close but honestly I'm not sure (I just know that if you never rate me, they won't pay me ... :)
That did it.. Thanks!
For Lane Only,
the taxes are the taxes from 2011 is ok anyway right?
yes the notice is just for 2011
yes the notice is just for 2011, just for 2011, nothing to do with 2012, i realized now...
i dont have to touch 2012 right? I just need to amend the 2011 taxes correct?
just to confirm
i just need to amend the taxes for 2011 because the letter is just 2011 taxes, correct?
i don't need to touch the 2012 taxes? correct?
i sent you a 10 dollar bonus, i know is not much for your expert advises...
i plan to send the letter on monday, so i have a question in the letter there is a check box that said "I dont agree with some or all of the changes" and said also "please return this form and include a statement signed by you that explain what you don't agree with. Also included copies of any document, such as corrected w-2, 1099, or missing forms that support your statement.
my question is: there i just have to mark the checkbox "i dont agreed and write an additiona letter explaining that i did not know about the 1099-c and that i will amend the 2011 taxes including a new 982 form with the amount in those 1099-c.
Please correct my small paragraph, my english is not good...
This get a new twist, i will explain
i went to my archives and look the tax declaration in detail with the form used and everything:
Im my 2011 tax declarations i reported 2 of the 3 1099-c the IRS is claiming
the 3: 1099-c in the letter from the IRS are: $5300, $4081 and $1412: in my tax declaration in the 982 i reported the 2 big ones: total amount: $9381. i never received the 1099-c for $1412 so i did not included it in my 982.
now i'm confuse: why the IRS is claiming the taxes for $10793.00 they should claim just $1412 as i reported $9381 in my 982...
Please help !
Hi Miguel,Now I'm confused as well! :) (Not really)I think you're at the point where you need to call the number on the notice and tell them exactly what you said here.Sometimes the system (IRS computer system) just works that way. For example, I just had a client who trades stocks a lot and because her came up with a loss for the year reported nothing (because he OWED nothing).BUT, the IRS just sent a bill (a huge $200,000+ bill) to him as if every simgle stock trade that he made was all profit.What he didn't do was report, on schedule D, the BASIS (the invetment he already had) in the stocks ... once he did that, IRS could see that he actually had a loss for that year.It could very well be that the WHOLE thing has "kicked out of the system" because the amount you reported didn't match the TOTAL amount of 1099 income.I would do two things:(1) DO the amended return, as we discussed before, but be sure that the 982 amounts (1099 amounts) total to exactly what they received, and(2) Answer the notice in the same way. Tell them exactly what you've said here an get that amended return file BOTH, as quickly as possible.I think you'll be fine. Everything just has to match up.Make sense?Lane
please clarify something for me when you include 982 you don't need to put the 1099-c in the declaration, right? just the 982 with the amount
Also i don't need to call them right? with a letter explaing is ok correct?
and i dont need to send in the letter the copy of the 982 fixed and sent in amendment...correct?
i failed with taxact and the e-filing is closed? i need to mail it then?
there's not way to send electronicly the amendment, right?
i will resume in my words:
i will amend the return in taxact, print it out and i will send it with my letter explaining everything, i will mark the no agreed check box in the letter they sent me and i will send everything via fedex/ups.
i checked the link for the address to send everything and they said:
The address shown in the notice
so i will send it to the address in the letter..?
my question is: Answering the letter and sending the amendment and everything to the address in the letter will be the "filing on my amendment" also, right?
or the amendment as such is in another address?
Thanks a bunch !!!
if i make a new question can i enter to the chat again...
i still have doubts and need to ask about 1040x