Tax Law (Questions About Taxes)/form 982 for Insolvency

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Question
I am filling out the worksheet for for 982 to prove insolvency.  My question is, do I need to send in "proof" of FMV of assets and statements showing debt along with this form to the IRS with my tax return?

Answer
Thanks for your question today.

Please do not provide any information with your tax return that is not specifically requested. Save all your information in case of an audit. The IRS does not want to wade through documents that are not part of the actual return. This is just like not needing to send receipts for any other deductions.

The Form stands alone and is attached to the return if you are mailing your return in.

Tax Law (Questions About Taxes)

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Randall Klein, MBA, EA

Expertise

I am an expert in personal and small business taxation, including Forms 1040, 1120, 1120S, 1065. I can answer any type of tax question except those that are requesting help in illegal tax evasion. Tax avoidance is legal, however. I do not do offshore trusts, or opt-out of the tax system type of queries.

Experience

25 years real experience in dealing with tax preparation, representation before the IRS, tax problem resolution, and more. Successfully represented clients in Offers in Compromise with more than 95% of all offers accepted.

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National Association of Enrolled Agents National Society of Tax Preparers BNI - Business Networking International

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Yahoo Answers - recognized as a tax expert.

Education/Credentials
MBA, Weatherhead School, Case Western Reserve University. BA, Indiana University, Bloomington Enrolled Agent, licensed by US Treasury.

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Most of my clients are small business owners

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