tax season

equity is key.

by eric l. green
tax rep network

“i know i can’t sell the property because the irs has a lien for $80,000 it filed two years ago and there is not enough equity, and i don’t have the money to pay them.”

more: tax: explaining the bad news about canceled debt to clients | offers in compromise aren’t for everyone
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ever heard this? we do, on almost a weekly basis. there is a lot to unpack there, but to cut to the chase:

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what do your clients deserve?

by ed mendlowitz
how to review tax returns: the field-tested update

my partner peter weitsen frequently tells reviewers to “don’t use eyes, use brain.” i frequently repeat this. what does this expression mean?

more: stop tax return review shortcuts | the best way to review a tax return | three types of tax return reviews | routine is key to reviewing tax returns | why you can’t skip checklists | tax review procedures are your quality control | seven types of tax return reviews | how to turn tax returns into new business
exclusively for pro members. log in here or 2022世界杯足球排名 today.

this is a clarion call to focus on what you are working on and think about what you are supposed to be doing. the focus can be only a couple of minutes, but it has the potential to yield valuable planning ideas and maneuvers.
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meet form 982.

by eric l. green
tax rep network

“what do you mean i have to pay tax on that debt? it was a debt, and they forgave it. the bank gave me a gift; i am pretty sure that is how it works.”

more: offers in compromise aren’t for everyone
exclusively for pro members. log in here or 2022世界杯足球排名 today.

all of a sudden, my client – who five minutes before told me they knew nothing about taxes – is now explaining to me, a tax attorney, that the canceled debt cannot be income and that a third-party bank obviously meant it as a gift.

sadly, it is not a gift; there was never any intent for it to be a gift. when either the bank or another creditor writes off that debt you owed, they are required to file a 1099-c to report the canceled debt to the irs so the lender can take the bad debt write-off. according to congress, the courts and the irs, the recipient now has income because they received value that they do not have to repay. in tax parlance it’s called an “ascension to wealth.”

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