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posted Dec 7, 2020 6:24:29 AM

Cancellation of Debt

I received a notice from the IRS for changes to my 2018 tax returns that listed 2 Cancellation of Debts. Both were unsecured debts in which I have worked with a debt settlement company to pay off these debts. Both have been settled and paid off and I was not aware that this was going to happen. The total for the 2 Cancellations of Debts are $7,787 and the notice is for a “Proposed Amount Due of $2,015” and should be paid by 12/30/2020. The notice gives me options to respond if I agree or disagree. This is the first I’ve heard of this, unfortunately the debt settlement company did not disclose to me that this could happen. What options do I have if I do not agree with the change in my returns? Most importantly, is there an option to not have to pay this? Thank you I’m advance for any guidance you can share. 

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Level 15
Dec 7, 2020 6:29:45 AM

(what the letters from the IRS mean)

I GOT A LETTER FROM THE IRS   

https://ttlc.intuit.com/questions/3605673-i-got-a-letter-or-notice-from-the-irs

 

I AM BEING AUDITED

If you purchased Audit Defense:

https://ttlc.intuit.com/questions/2924451-i-bought-max-or-audit-defense-and-now-i-m-being-audited

 

AUDIT SUPPORT

If you did NOT purchase Audit Defense:

https://support.turbotax.intuit.com/irs-notice/audit-support/