Hello, I'm Robert Todd, and I'm here to address the question of what the IRS considers insolvent to mean. Generally, insolvent to the IRS means that a person's total liabilities exceed their total assets. Why is this important? Well, this becomes important, for example, in a mortgage foreclosure where the mortgage holder forecloses on the mortgage and there is a deficiency. If the deficiency is forgiven by the mortgage holder, an insolvent person is not required to pay taxes on that deficiency or may be exempt from paying taxes on it. So, it's important to consider what constitutes a liability and what constitutes an asset, as this becomes very important when it comes to tax consequences. I'm Robert Todd, and this is what the IRS means by insolvency. If you have any further questions, you should consider consulting a tax advisor to ensure that this applies to your specific case. Thank you for watching.
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Can you file 982 electronically Form: What You Should Know
The Form 982 that you are required to file if you receive a 1099C. It does not matter if you were required to file form 982 to report your income or to resolve a debt. Note: If your payment was in lieu of tax, you cannot deduct it (e.g. in lieu of income tax), you must include it in income. If you are unable to include it in income (for example for a reason involving medical, etc.) you must include an amount as an adjustment or deductions. This is the form you need. Note: If you were required to file Form 5329, you have to use this form. Desktop: Form 982 Jul 26, 2024 — You may need to file a form 982 by the due date to correct an error on your tax return. For instance this would be for when you have a mistake with your withholding. You will need to file a request for correction with your tax software. If you did not file your tax return on time, you can use a payment plan with your tax software provider. Here are instructions. Phone: or Sep 9, 2024 — When you are able to provide the information, fill out the Form 982 form. Phone: or Sep 9, 2024 — The IRS will ask the payment information. If the payment was in lieu of tax, you do not have to fill in the amount forgiven. This happens for many reasons (e.g. to avoid filing a W-2, have a medical hardship, etc.). Phone: or Sep 9, 2024 — This is the exact time to file your Form 982 after receiving the payment. It's good to have the payment information. Phone: or Sep 10, 2024 — You'll receive an IRS form 982, and you also get the instructions about filing it. In other words, you can only file your Form 982 once. Phone: or Dec 14, 2024 — The IRS sends you a notice about the income exclusion.
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