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Category: Finance
Satisfied Customers: 4666
Experience:  Tax professional and business consultant for 35 years.
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I was in debt to a company k. They went ahead and

Customer Question

I was in debt to a company for 80 k. They went ahead and gave me a debt forgiveness for half of it. But I had to report that as income on my taxes for 2014. I had made 20 k so plus the 40 k it showed that I made 60 k. And no I have to pay 15 k in taxes.
Is there anything I can do?
Submitted: 2 years ago.
Category: Finance
Expert:  PDtax replied 2 years ago.
Hi from just answer. I'mCustomer and can assist.You might qualify for relief from the tax via insolvency. If you had more debts than assets at the time of the debt relief, you might be able to escape any tax.Form 982 is what you use. Complete the form and submit it with your return. If you have filed, an amended return could be used to fix things.Consider a tax pro to prepare the form for you, it is complicated. Thanks for asking at just answer. Positive feedback is appreciated. I'mCustomer