August 10, 2010 – 10:32 pm
If a creditor writes off your debt, or even if you settle that debt with your creditor, the IRS may still count the amount as taxable income.
If you work out a deal to settle with a creditor for any less money than the exact amount that you owe, or if the creditor writes off the debt, the IRS may still regard you as owing money. The IRS will consider the forgiven amount of the debt as income, and you will continue to owe income taxes on it.
How does this work? Creditors will often wait for a pre-determined period … Read more at 2008 Taxes.
August 4, 2010 – 10:39 pm
The time has come and gone to file federal taxes and even if you haven’t yet filed with the IRS, it is still possible that backs taxes be filed for your benefit.
Obviously, it’s best to pay off IRS back taxes as quickly as you can. The current approach of the government is to allow each tax payer to file their returns voluntarily. However, this doesn’t mean that payment of those taxes isn’t mandatory. While participating in the voluntary filing of taxes, on time or otherwise, the tax payer has the option of applying a number of deductions and … Read more at 2008 Taxes.
By Steve
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Posted in irs, tax credit, tax planning, Tax Preparation, tax return, turbotax
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Tagged File Back Taxes, filling of taxes, paying irs back taxes, turbo tax, turbotax, www.irs.gov
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