Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

Lev, I have filled-out the insolvency worksheets and the 982.

I just want to double...
Lev, I have filled-out the insolvency worksheets and the 982. I just want to double check - my husband and I file jointly but this debt (and all I listed on the worksheets) is mine. It is my understanding that although we file jointly I do not have to
fill out any worksheets for him? He owns a lot of rental property but nothing is in my name. Next question, can I use my credit report to prove the amount of debt and lack of property to the IRS? And I read somewhere that if I file this 982 I will be audited
-- is this true?
Show More
Show Less
Ask Your Own Tax Question
Answered in 36 minutes by:
6/5/2013
Rachel-Mod
Rachel-Mod, Moderator
Category: Tax
Satisfied Customers: 5
Experience: Moderator
Verified

Hi, I am a moderator for this topic. I sent your requested Expert, Lev a message to follow up with you here, when they are back online. If I can help further, please let me know. Thank you for your continued patience.

Ask Your Own Tax Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,130
Experience: Taxes, Immigration, Labor Relations
Verified
If that is YOUR forgiven debt - only you will prepare the insolvency worksheets and form 982 - even if you choose to file a joint tax return - thus only YOUR debts and your assets are counted.
If that was not your spouse's debt - that is not his income - and he doesn't need to prepare the insolvency worksheet and form 982.
You do not need to send insolvency worksheet to the IRS and do not need to proof anything unless specifically asked.
Filing form 982 doesn't not necessary triggers the audit. However - there is no guarantee that you will or will not be audited because the IRS is based such decision on many circumstances including just random selection for the audit.
If audited - you might be asked to proof all amounts you provide on the tax return - including those on form 982. You might ask to send insolvency worksheets and or other documentation.
If needed - you may use any type of documents including your credit report.
Let me know if you need any help.
Ask Your Own Tax Question
Customer reply replied 4 years ago
When I last spoke with the IRS, the agent or person I spoke with said 982 needed to accompany a statement of assets & liabilities or at least that is what I thought he was talking about. This is related to my 2011 return & I told them I was filing a 982 to prove insolvency and wanted to know if I also had to file an amended return -- I think I am confusing myself.
Customer reply replied 4 years ago
May be I need to explain further, I never received any 1099-c s from any bank, just a letter from the IRS saying a computer comparison showed I had failed to report all my income - they (IRS) received two 1099Cs-one from Bank of America & one from Chase.
That most likely because you are filing late your 2011 tax return.
If timely filed - no need to provide any statements.
But if you are filing late - and your tax liability was already assessed - your return will be processed separately - and that is why you asked to provide supporting documents.
So your situation is a little different because (1) late filing (2) you are filing after assessment.
So - yes - you need to attach the insolvency worksheet to your amended tax return - and provide a list of your debts and assessed.
Unless specifically asked - no need to provide any additional supporting documents. You might be asked for additional documents - but so far - if not asked - do not send anything.
The IRS knows that is YOUR debt based on the form 1099C they received from the creditor - and do not expect anything from your spouse.
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,130
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,130
30,130 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Impact of tax changes on filing amended returns... Client
Impact of tax changes on filing amended returns... Client filed a 2016 tax return on time in 2017. If the tax laws change significantly, which laws apply when amended returns are filed... the tax laws… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,452 satisfied customers
I bought a rental property for 49000 and sold it for 29000
I bought a rental property for 49000 and sold it for 29000 many years later. During those years I depreciated it entirely. So do I it don't I have to pay capital gain on the entire 29000? … read more
abci168
abci168
Principal
27 satisfied customers
How to report cancellation of debt on rental property?
I received a 1099-C for my rental property that I held for over 1 year. According to the worksheet provided in IRS Publication 4681 I was insolvent just prior to the debt being canceled. My question i… read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
Filed W1040 for self-employment. Should I file amended return for HSH?
I was self-employed last year and I filed a W1040 tax form. Everything went through well. I did it through an H&R computer program. Currently I am in need of financial aid as I am going to college. I … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Figure out how much is my tax liability + my capital gains +
Figure out how much is my tax liability + my capital gains + depreciation recapture tax … read more
Lev
Lev
Tax Advisor
30,130 satisfied customers
Are you familiar with Capital Gain taxes on rental property?
Are you familiar with Capital Gain taxes on rental property? … read more
Lev
Lev
Tax Advisor
30,130 satisfied customers
Does a go fund me account create a tax liability or is it
does a go fund me account create a tax liability or is it considered a donation? It is for assistance in covering medical bills. … read more
abci168
abci168
Principal
27 satisfied customers
I just efiled a joint tax return for me and my wife.
I just efiled a joint tax return for me and my wife. Federal, Non Resident Hawaii, and Resident Massachusetts. My wife is a resident alien living in Thailand. Turbotax didnt allow me to e file my Mass… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,452 satisfied customers
Is a tax return less likely to be audited if it's prepared
Is a tax return less likely to be audited if it's prepared by a CPA or simply a tax person? Secondly, our Rotary Club is a 401 C for we have a 401 c 3 Foundation the question is can individual members… read more
socrateaser
socrateaser
1,031 satisfied customers
Disposition of Rental Property. Rental property: Gross sale
Disposition of Rental Property.Rental property : Gross sale price: $600K Cost or Other Basis plus Selling Expenses: $300K Depreciation allowed or allowable: $100K (Form 4797 line 22)Adjustment: $300K … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Sell of property tax liability. Ca. Bought home 25 yrs ago
bought home 400,000 selling 2.5 mil. Invested 500,000 owe 800,000… read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,310 satisfied customers
Can a taxpayer file an amended return to elect into the
Can a taxpayer file an amended return to elect into the installment method if the original return was filed error without the installment method.… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
When does the Florida sales tax liability due to the DOR'
When does the Florida sales tax liability due to the DOR' invoice & delivery or title registration with the county tag office? … read more
abci168
abci168
Principal
27 satisfied customers
Tax CPA question: amended tax returns 1: I have received
Tax CPA question: amended tax returns1: I have received CP2000 for 2015 tax. I forgot to add one financial institution's DIV so I agreed CP2000 and just paid the amount on CP2000 to IRA.2. After that,… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
IF A TAXPAYER IS FILING MFS AND HAS A RENTAL PROPERTY. CAN
IF A TAXPAYER IS FILING MFS AND HAS A RENTAL PROPERTY. CAN THE RENTAL ACTIVITY BE PASSIVE RENTAL REAL ESTATE WITH ACTIVE PARTICIPATION? I AM GETTING AN ERROR IN THE SOFTWARE. ALSO IF A TAXPAYER IS FIL… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
1045 and an amended tax return. 2015 tax return had a $ 248K
1045 and an amended tax return.2015 tax return had a $ 248K NOL. I prepared the 2015 tax return and a 1045 to carryback the loss back two years. All of the loss was used up on the 1045.In preparing th… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
When will 2015 amended returns be processed, I filed an
I filed an amended return 1 year ago. IRS has not yet begun processing. How long does it take? … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,215 satisfied customers
I am have filed an amended tax return because I mistakenly
i am have filed an amended tax return because I mistakenly claimed my 18 year old's daughter's income ( a little over $1000) on my taxes. I thought that this is what I was supposed to do since she was… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x