Tax Law (Questions About Taxes)/Form 982

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Question
QUESTION: Hello again Mr Stancil.

I would like some help with form 982 part II.  I have referred to IRS instructions and am still confused with part II.

I only have ssdi income.  I received one 1099 for non secured personal loan, and one 1099 for CC debt.  I am not sure where to plug my insolvency numbers based off my 4681 worksheet I did.

ANSWER: Jim,

Thanks for your question.

You don't have to put your insolvency numbers, just indicate that you were insolvent.  Keep the numbers in case of an IRS audit or inquiry.

Hope this helps.

John Stancil, CPA

---------- FOLLOW-UP ----------

QUESTION: So I leave form 982 part II blank?  Part II is for "reduction of tax attributes".

I've read some people have put credit card debt on part II line 10a.  Is that incorrect?

I should note I have February 2011 version of form 982.  I believe it is the current one.

ANSWER: No, you don't leave necessarily it blank.  I said you do not have to show your insolvency numbers.  Part II deals with reduction of tax attributes.  If you are required to reduce any of the tax attributes, you enter the amount that is being reduced.

Since I do not have the details of your transactions I can't tell you what, if any, tax attributes would be reduced. Tax attributes are those items listed in part II.

John Stancil, CPA



---------- FOLLOW-UP ----------

QUESTION: I was able to figure out how to fill out the 982 properly.  However, I see no mailing address on the instructions nor on IRS.gov.  I live in NYC and was wondering if you know where I need to mail this?

Amazes me that a mailing address would be omitted from the instructions.

Answer
The 982 is included with your 1040.  That's why there are no mailing instruction on the instructions to the 982.

If you are not including a payment, it should go to:

Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999-0002   

If you are including a payment, send it to:

Internal Revenue Service
P.O. Box 37008
Hartford, CT 06176-0008

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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