Has anyone ever had to prove Insolvent to the IRS over canceled debt?
Date: Wed, 12/03/2008 - 16:42
Have you and how hard or easy was it if you are in debt more than you are worth?
As far as I know, canceled debts are non-taxable. Source
As far as I know, canceled debts are non-taxable.
Source: - "http://www.taxalmanac.org/index.php/Discussion:Cancellation_of_debt"
I guess if you are insolvent being audited is meaningless unless
I guess if you are insolvent being audited is meaningless unless you are lying? I am buried and have 120,000 in assets and 230,000 in debts so I guess I can be insolvent by 110,000? Thanks for the advice and I will send a description with all my debts and assetts to the IRS. Any other advice or info would be greatly appreciated.