Thank
you for visiting this website. I help people resolve their
tax problems with the IRS.
Perhaps
you received a Form 1099 from a creditor. Or, an assessment from the
IRS, who says you owe income taxes. Maybe you are having financial
problems, and are wondering whether it's a good idea to "short sale"
your real estate. Or, there already is a pending foreclosure. You may
be a real estate investor with all of the above. Or, a real estate
broker, attorney or accountant worrying about the tax consequence of a
client's distress sale of real estate.
One thing is certain: You need to act
NOW!
You
need to do something about this situation, and I may be able to help
you. You are not alone in being concerned or confused. Since January
2007, Google has registered over 1,000,000 searches on the keywords
associated with 1099advisor.com!
Click here
if your situation deals with a short sale of real estate.
Say
a taxpayer receives a Form 1099-C from a creditor which wrote off
some bad credit card debt. The IRS considers the dollar
amount set forth on line 2 of Form 1099-C as INCOME
from the cancellation of a debt ("COD"). This must be reported as
"Other Income" on your federal tax return. If line 2 is
$5,000, your income (i.e., wages, salary, interest) subject to federal
income tax will increase by $5,000. If line 2 is $100,000,
taxable income will increase by $100,000. Ouch!
Or,
say you just got an assessment from the IRS for COD income. What if you
never received a Form 1099? Well, the IRS has received its
copy of Form 1099 from your creditor, and saw that you did not include
this COD income on your last tax return. If you moved and the post
ofice is no longer forwarding your mail, the creditor probably mailed
the taxpayer copy to your old address and it was lost. Nevertheless,
the IRS has re-calculated the amount of taxes that now they say you
owe. They may have taken your tax refund.
What
about "short sales" of real estate? If your mortgage company
has agreed to take less than you owe, then the amount canceled is COD
income to you. This will increase your federal income tax liability by
your marginal tax rate. This even may put you into a higher
tax bracket!
Same
for real estate foreclosures and so-called "deeds in lieu."
When your lender decides to write off any deficiency from a distress
sale, you should be getting a Form 1099-A or Form 1099-C (except for
certain "non-recourse" obligations). And, filing for
backruptcy does not necessarily solve this current tax problem with the
IRS.
That is unless you claim a
valid IRS exclusion from having to pay the additional taxes.
Here's
some good news: The IRS provides tax relief from
COD income. Depending on your particular situation, you may
be able to avoid paying federal income tax on COD income. There are
specific exclusions set forth in the Internal Revenue Code, and you may
qualify for one or more of these exclusions.
But
the burden is on you, the taxpayer, to claim a valid exclusion pursuant
to IRS regulations. This is where I may be able to help you
with your Form 1099 to avoid--or reverse--all or part of this
additional federal income tax liability.
Because
every situation is unique, feel free to fill out this form and submit
it to me. I'll get back to you in about 24 hours with
informaton that I hope you will find helpful. I will treat
your information confidentially.
--Fill-In
Form:-------------------------------------------------------
Or, call me toll free:
1-877-477-1099
1-877-IRS-1099
I would be pleased to discuss
your situation confidentially and without
any charge for an initial consultation. You have no
obligation to engage my services during or after your initial call.
But if you do need my help, I
have much experience dealing in resolving these problems. I represent
people coast-to-coast and charge a reasonable fee for professional
services rendered.
Cancellation
of Debt Income explained.
Discussion
about COD income and more examples.
Short sales and
Form 1099-C.
Information
about Cancellation of Debt Income arising from the short sale of real
estate.
More information
about my services offered.
Important
terms of engagement and information about me.
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here if you wish to email me.
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aware that email is not secure, so do NOT include any sensitive or
confidential information.
Disclaimer and Terms of Use..
Please
read this important disclaimer about your use of the information
contained in this web site, and how you should act upon matters involving
your legal rights.
PLEASE READ THIS IMPORTANT
INFORMATION
I,
David N. Stonehill, have prepared the materials that are presented on
this website on behalf of David N. Stonehill Co., LPA, my Ohio legal
professional association. My intent is to provide information about my
services offered to prospective clients, and to provide general
information about federal tax matters concerning IRS Form 1099-C.
This website is designed for general
information only. The information presented herein should not be
construed to be formal legal advice, as the advice appropriate for you
will be dependent upon the particular facts and circumstances of your
situation.
The hiring of a lawyer is an important
decision that should not be based solely upon advertisements. Before
you decide, ask me provide free written information about my
qualifications and experience. The transmission and receipt of the
information presented herein do not create a lawyer/client
relationship.
The laws governing legal advertising in
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