Just because you got a 1099-C form from forgiven debt is not a reason to immediately panic and think you will automatically owe a lot of taxes on the forgiven debt. In the debt world, a point of contention is the chronic misinformation about forgiven debt from debt settlement or a debt determined to be … Read more
It seems more and more people are getting tax form 1099-C issued now for the forgiveness of old debt from as long as twenty years ago. That’s a problem for consumers. This old debt is sometimes called “zombie debt” because it appears to come back from the dead. The first thing you should do is … Read more
Question: Dear Steve, My wife got 2 1099-C’s this year (1/30/2021). One had an identifiable date as 12/31/2017 and Identifiable Code G and the other had 12/31/2020 the date and a Code F. 2nd creditor (code F) had sold this account to 3rd party debt collector about two years before and we had no agreement … Read more
Question: Dear Steve, I’ve been on a payment plan from the 2014-15-16 installment agreement – IRS keeps hanging up on me, and I cannot get thru to them to lower monthly payments. Can you help lower payments? Robyn Answer: Dear Robyn, Ultimately the IRS is the one controlling your payment. Here is the specific advice … Read more
Question: Dear Steve, A 1099C was issued in my wife’s name for debt her sister incurred and that was credited to my wife as income to the IRS. This was of an approved settlement my sister paid to American Express. I spoke to American Express Customer service three times and was told there is no … Read more
Question: Dear Steve, I had a joint auto loan from 2015, my ex was the only person to ever use the car. Divorced in 2016. Her car her responsibility in divorce we agreed. She didn’t pay, Car repossessed in 2018. Settled Dec 2019/Jan 2020. I sent the payment in December but they didn’t process until … Read more
The Federal Trade Commission has been investigating Intuit and its marketing of TurboTax products, following ProPublica’s reporting that the Silicon Valley company deceived tax filers into paying when they could have filed for free. The FTC probe, run out of the commission’s Bureau of Consumer Protection, centers on whether Intuit violated the law against unfair … Read more
Question: Dear Steve, I received a 1099-C for charge off debt in 2004. I filed my taxes already. This debt occurred when I was married. Divorced for more than 6 years. The single parent no child support. I support my household alone. Can I claim insolvent on this based on my the household falls on … Read more
Question: Dear Steve, I owe over 10,000. in taxes. I have been in prison 3 times in 10 years. Can I file for an offer of comprise to get rid of this issue? The 10,000.imposed come from came pills found on me and sent off to be analyzed and money I got from a home … Read more
President Trump just signed a new executive order, “Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster.” For those unemployed and receiving benefits, it doesn’t mean much. For people that are employed an impression people may come away with is taxes withheld will be waived. The executive order says the halt to the … Read more
Question: Dear Steve, Self Employed real estate professional – 54 years old – making decent money even during the pandemic, but debt and tax issues straining emotions and marriage (30+ years and 4 kids). My wife and I are Realtors and have been self-employed (mostly) since 2005. We got behind on state and federal taxes … Read more
Question: Dear Jim, Over 23 years ago I owe the IRS $6000 for an overpayment/refund from them. Over the years that amount was changed with penalties and interest is now $200000 or more. Now I 72 years old and have been receiving SSN with a garnishment payment every month. Last year they took $2000 out. … Read more
Question: Dear Steve, My husband and I recently filed out 2018 taxes and owe/paying down a few thousand dollars. Our combined adjusted gross income in 2018 was around $97K. We didn’t receive our stimulus check, although I receive SS which is directly deposited into my bank account. Do you know if someone owes the IRS … Read more
Question: Dear Jim, I received a CP2000 concerning a bank cancellation of debt, this was due to insolvency. I did not know I had to file this on my 2018 tax return because I honestly do not remember receiving it. The total due is over $2000 in taxes after IRS computed calculated adjustments. I would … Read more
At the end of March, the federal government passed a $2.2 trillion bipartisan emergency coronavirus relief package, offering some of the most hard hit a much needed stopgap. The legislation includes small business loans and coronavirus stimulus checks for low- and middle-income Americans. Will I get a coronavirus stimulus emergency check? You should receive a … Read more