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Level 4
posted Oct 14, 2021 8:48:17 AM

Insolvency Worksheet - Question on a Liability - Can I add back taxes owed?

Hello everyone!

 

In completing my insolvency worksheet, for liabilities, do I add my prior tax return liabilities that weren't yet paid or filed, as of the date of my 1099-C?  I had a couple years of unfiled returns, and owed on them.   I did file back tax returns in October and am now on a payment plan, but my 1099-C(s) were all in March - May, before the filing of the back tax returns, but the debt was still owed regardless if filed or not.

 

So my question is only if I can add my Tax Return Debt Liability to Insolvency Worksheet, if I had not yet submitted that tax return?  

 

Thank you for your interest in helping me!

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1 Best answer
Level 15
Oct 14, 2021 8:57:03 AM

Yes ... read the worksheet ...   https://www.irs.gov/publications/p4681.

 

2 Replies
Level 15
Oct 14, 2021 8:57:03 AM

Yes ... read the worksheet ...   https://www.irs.gov/publications/p4681.

 

Level 4
Oct 14, 2021 1:32:26 PM

Thank you Critter!  I was looking at a worksheet that had been finalized, and didn't see it on there....I see it now on this worksheet.  Appreciate you taking the time!