topic Re: Insolvency help in Get your taxes done using TurboTax

Insolvency help

DazedConfused1 — Wed, 29 Jan 2025 22:21:06 GMT

I received a 1099-C in 2018 for 3k and change. I was insolvent in w018. I filed Form 982. I received a notification 6 months later that I owed 3k + interest. I re-filed form 982, along with over 100+ pages of proof of insolvency. 2 years later I receive another notification of money owed. I call the IRS, they tell me I need to submit Form 982. I do this, again, etc

its now 2025, and after 2+ years of receiving “we need more time” letters, I receive a new bill, with more interest and penalties.

Am I doing something wrong? Is there a way to actually get hold of a human being at the IRS? Do I just keep submitting what I have?

Re: Insolvency help

DoninGA — Wed, 29 Jan 2025 22:26:02 GMT

You should contact your local IRS office. See this IRS website for local IRS offices - http://www.irs.gov/uac/Contact-Your-Local-IRS-Office-1 or call 1-844-545-5640 to set up an appointment

Re: Insolvency help

Opus 17 — Wed, 29 Jan 2025 22:31:02 GMT

Or contact the Taxpayer Advocate.

https://www.irs.gov/taxpayer-advocate

It doesn't make sense for a start that you would owe $3000 in tax if your 1099-C income was just $3000. Was there something else they adjusted? If you can't make headway with the IRS you likely need a local professional to look over all your files and correspondence to figure out where you are at this point.

Re: Insolvency help

DazedConfused1 — Wed, 29 Jan 2025 23:02:39 GMT

3k is what I owed, the 1099c was for around 10k. What I owe is just from the added 10k. However, I was insolvent (by a lot). I tried asking this question on Reddit Tax and they think the 1099 can follow you forever until you pay it…

Re: Insolvency help

DazedConfused1 — Wed, 29 Jan 2025 23:03:01 GMT

I’ll try this, thanks